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<SEC-DOCUMENT>0001311435-06-000012.txt : 20060621
<SEC-HEADER>0001311435-06-000012.hdr.sgml : 20060621
<ACCEPTANCE-DATETIME>20060621132753
ACCESSION NUMBER:		0001311435-06-000012
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060621
DATE AS OF CHANGE:		20060621

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:		06916981

	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>sj0606en20f.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>

<head>
<title>sj0606en20f</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 valign="top" colspan="3" width="100%"><font size="2"
        face="Times New Roman, Times, Serif">&nbsp; (Mark One)</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="right" width="4%"><p align="left"><font
        size="2" face="Times New Roman, Times, Serif"><img
        src="no.gif" width="23" height="23"> </font></p>
        </td>
        <td align="middle" width="1%">&nbsp; </td>
        <td align="middle" width="95%"><p align="left"><font
        size="3" face="Times New Roman, Times, Serif">REGISTRATION
        STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE
        SECURITIES EXCHANGE ACT OF 1934</font></p>
        </td>
    </tr>
    <tr>
        <td align="right" colspan="3" width="100%"><p
        align="center"><font size="2"
        face="Times New Roman, Times, Serif">OR</font></p>
        </td>
    </tr>
    <tr>
        <td align="right" width="5%"><p align="left"><font
        size="2" face="Times New Roman, Times, Serif"><b><img
        src="si.gif" width="23" height="23"></b></font></p>
        </td>
        <td align="middle" width="1%">&nbsp; </td>
        <td width="95%"><font size="3"
        face="Times New Roman, Times, Serif"><b>ANNUAL REPORT
        PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 <br>
        For the fiscal year ended December 31, 200</b><strong>5</strong></font></td>
    </tr>
    <tr>
        <td colspan="3"><p align="center"><font size="2"
        face="Times New Roman, Times, Serif">OR</font></p>
        </td>
    </tr>
    <tr>
        <td width="4%"><img src="no.gif" width="23" height="23"></td>
        <td width="1%">&nbsp;</td>
        <td width="95%"><font size="3">TRANSITION REPORT PURSUANT
        TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
        1934<br>
        For the transition period from _____ to _____</font></td>
    </tr>
    <tr>
        <td align="right" colspan="3" width="100%"><p
        align="center"><font size="2"
        face="Times New Roman, Times, Serif">OR</font></p>
        </td>
    </tr>
    <tr>
        <td align="right" width="4%"><p align="left"><img
        src="no.gif" width="23" height="23"></p>
        </td>
        <td align="middle" width="1%">&nbsp; </td>
        <td width="95%">SHELL COMPANY REPORT PURSUANT TO SECTION
        13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
        Date of event requiring this shell company report</td>
    </tr>
</table>

<p align="center"><font size="2"
face="Times New Roman, Times, Serif"><b>Commission file number:
1-14090</b></font></p>

<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 or 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"><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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="70%">
    <tr>
        <td valign="top" width="48%"><p align="center"><font
        size="2"><u>Title of each class</u></font></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="48%"><p align="center"><font
        size="2"><u>Name of each exchange on which registered</u></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="48%"><p align="center"><font
        size="2"><b>Shares<br>
        American Depositary Shares<br>
        </b></font><font size="1">(Which represent the right to
        receive two Shares)</font></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="48%"><p align="center"><font
        size="2"><b>New York Stock Exchange*<br>
        New York Stock Exchange</b></font></p>
        </td>
    </tr>
</table>
</center></div>

<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>

<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>

<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>4,005,358,876</b></font></td>
    </tr>
</table>

<p><font size="2">Indicate by check mark whether the Registrant
is a well known seasoned issuer, as defined in Rule 405 of the
Securities Act: </font></p>
<div align="right">

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

<p><font size="2">If this report is an annual or transition
report, indicate by check mark whether the Registrant is nor
required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934: </font></p>
<div align="right">

<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="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;No&nbsp;</font></p>
        </td>
        <td width="20%"><p align="center"><img src="si.gif"
        width="18" height="18"></p>
        </td>
    </tr>
</table>
</div>

<p><font size="2">Indicate by check mark whether the Registrant
(1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days: </font></p>
<div align="right">

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

<p><font size="2">Indicate by check mark whether the Registrant
is a large accelerated filer, an accelerated filer, or a non
accelerated filer. See definition of &quot;Accelerated filer and
large accelerated filer&quot; in Rule 12b-2 of the Exchange Act:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="70%">
    <tr>
        <td valign="bottom" width="22%"><p align="center"><font
        size="2">Large accelerated filer</font></p>
        </td>
        <td valign="bottom" width="11%"><p align="center"><img
        src="si.gif" width="18" height="18"></p>
        </td>
        <td valign="bottom" width="22%"><p align="center"><font
        size="2">Accelerated filer</font></p>
        </td>
        <td valign="bottom" width="11%"><p align="center"><img
        src="no.gif" width="18" height="18"></p>
        </td>
        <td valign="bottom" width="22%"><p align="center"><font
        size="2">Non-accelerated filer</font></p>
        </td>
        <td valign="bottom" width="11%"><p align="center"><img
        src="no.gif" width="18" height="18"></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Indicate by check mark which financial
statement Item the Registrant has elected to follow: </font></p>
<div align="right">

<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>
</div>

<p><font size="2">If this is an annual report, indicate by check
mark whether the Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act): </font></p>
<div align="right">

<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="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;No&nbsp;</font></p>
        </td>
        <td width="20%"><p align="center"><img src="si.gif"
        width="18" height="18"></p>
        </td>
    </tr>
</table>
</div>

<hr size="1" align="left" noshade width="10%">

<p align="left"><font size="1">* Not for trading, but only in
connection with the registration of American Depositary Shares,
pursuant to the requirements of the Securities and Exchange
Commission.</font></p>

<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="10%"><b>PART I</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 1-3">Item 1.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">IDENTITY OF DIRECTORS,
        SENIOR MANAGEMENT AND ADVISORS <sup>(*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 1-3">Item 2.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">OFFER STATISTICS AND
        EXPECTED TIMETABLE <sup>(*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 1-3">Item 3.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">KEY INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 1-3">Selected
        Financial Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#SOI">Selected
        Operating Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Exchage Rate">Exchange
        Rates</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Risk Factors">Risk
        Factors</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 4">Item 4.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">INFORMATION ON THE COMPANY</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 4">History
        and Development of the Company</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Business Overview">Business
        Overview</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Business Overview">Exploration
        &amp; Production</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#G&amp;P">Gas &amp;
        Power</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#R&amp;M">Refining
        &amp; Marketing</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Petrochemicals">Petrochemicals</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#OSC&amp;E">Oilfield
        Services Construction and Engineering</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Other Act">Other
        Activities</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#R&amp;D">Research
        and Development</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Insurance">Insurance</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#EnvironMat">Environmental
        Matters</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#RegEniBiz">Regulation
        of Eni&#146;s Businesses</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a
        href="#Property plant &amp; eq">Property, Plant and
        Equipment</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Org Struct">Organizational
        Structure</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item4A">Item 4A</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">UNRESOLVED STAFF COMMENTS</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 5">Item 5.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">OPERATING AND FINANCIAL
        REVIEW AND PROSPECTS</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 5">Executive
        Summary</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Critical Acc">Critical
        Accounting Estimates</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Result of Op">Results
        of Operations</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Liquidity and CR">Liquidity
        and Capital Resources</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Financial cond">Financial
        Condition</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Recent Dev">Recent
        Developments</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Man Ex of Op">Management
        Expectations of Operations</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Summary of dif">Summary
        of Significant Differences Between IFRS and U.S. GAAP</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 6">Item 6.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">DIRECTORS, SENIOR MANAGEMENT
        AND EMPLOYEES</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 6">Directors
        and Senior Management</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Board practice">Board
        Practices</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Compensation">Compensation</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Employees">Employees</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Share owner">Share
        Ownership</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 7">Item 7.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">MAJOR SHAREHOLDERS AND
        RELATED PARTY TRANSACTIONS</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 7">Major
        Shareholders</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Related party">Related
        Party Transactions</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 8">Item 8.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">FINANCIAL INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 8">Consolidated
        Statements and Other Financial Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a
        href="#Significant changes">Significant Changes</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 9">Item 9.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">THE OFFER AND THE LISTING</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 9">Offer and
        Listing Details</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Markets">Markets</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 10">Item 10.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">ADDITIONAL INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Item 10">Memorandum
        and Articles of Association</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a
        href="#Material Contracts">Material Contracts</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Docs on Display">Documents
        on Display</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Exchange controls">Exchange
        Controls</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%"><a href="#Taxation">Taxation</a></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 11">Item 11.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">QUALITATIVE AND QUANTITATIVE
        DISCLOSURES ABOUT MARKET RISK</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 12">Item 12.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">DESCRIPTION OF SECURITIES
        OTHER THAN EQUITY SECURITIES</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><b>PART II</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 13-15">Item
        13.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">DEFAULTS, DIVIDEND
        ARREARAGES AND DELINQUENCIES</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 13-15">Item
        14.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">MATERIAL MODIFICATIONS TO
        THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 13-15">Item
        15.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">CONTROLS AND PROCEDURES</td>
    </tr>
    <tr>
        <td valign="top" width="10%">Item 16.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 16A">16A</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">Board of Statutory Auditors
        Financial Expert</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 16B">16B</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">Code of Ethics</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 16C">16C</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">Principal Accountant Fees
        and Services</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 16D">16D</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">Exemptions from the Listing
        Standards for Audit Committees</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 16E">16E</a>.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">Purchases of Equity
        Securities by the Issuer and Affiliated Purchasers</td>
    </tr>
    <tr>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><b>PART III</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 17-18">Item
        17.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">FINANCIAL STATEMENTS <sup>(*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 17-18">Item
        18.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">FINANCIAL STATEMENTS <sup>(**)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="10%"><a href="#Item 19">Item 19.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="88%">EXHIBITS</td>
    </tr>
</table>

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

<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.</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&#146;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&#146;, &#145;anticipates&#146;,
&#145;targets&#146;, &#145;goals&#146;, &#145;projects&#146;,
&#145;intends&#146;, &#145;plans&#146;, &#145;believes&#146;,
&#145;seeks&#146;, &#145;estimates&#146;, 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&#146;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&#146;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; or the
&quot;Company&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>The Consolidated Financial Statements of Eni, included in this
annual report, have been prepared in accordance with IFRS issued
by the International Accounting Standards Board (IASB) and
adopted by the European Commission following the procedure
contained in Article 6 of the EC Regulation No. 1606/2002 of the
European Parliament and Council of July 19, 2002. Until December
31, 2004, Eni prepared its Consolidated Financial Statements and
other interim financial information (including quarterly and
semi-annual data) in accordance with Italian GAAP. IFRS require
adopting companies to restate only one year of past financial
statements. Pursuant to SEC Release 33-8567, <i>&quot;First-time
Application of International Financial Reporting Standards&quot;</i>,
Eni is not required to include in this annual report financial
statements for any earlier periods. Accordingly this annual
report includes financial information prepared in accordance with
IFRS as of and for the two years ended December 31, 2004 and
2005.</p>

<p>IFRS, under which Eni&#146;s Consolidated Financial Statements
have been prepared, differ in certain significant respects from
U.S. GAAP. For information on the differences between IFRS and
U.S. GAAP as they relate to Eni, see Notes 33, 34 and 35 to
Eni&#146;s Consolidated Financial Statements included herein.</p>

<p>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;U.S. dollars&quot; and &quot;U.S. $&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&#146;s competitive position are
based on the company&#146;s belief, and in some cases rely on a
range of sources, including investment analysts&#146; reports,
independent market studies and Eni&#146;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&#146;s web
page at the address www.eni.it. Below is a selection of the most
frequently used terms.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="26%"><p align="center"><b><i>Financial
        Terms</i></b></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Leverage</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">It is a non-GAAP measure of
        a company&#146;s financial condition, calculated as the
        ratio between net borrowings and shareholders&#146;
        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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Net borrowings</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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&#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. 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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><p align="center"><b><i>Business
        terms</i></b></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Associated gas</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Barrel/BBL</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Volume unit corresponding to
        159 liters. A barrel of oil corresponds to about 0.137
        metric tons.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>BOE</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Concession contracts</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Condensates</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Conversion capacity</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Deep waters</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Waters deeper than 200
        meters.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Development</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Drilling and other
        post-exploration activities aimed at the production of
        oil and gas.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Enhanced recovery</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Techniques used to increase
        or stretch over time the production of wells.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>EPC</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Engineering, Procurement and
        Construction.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>EPIC</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Engineering, Procurement,
        Installation and Construction.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Exploration</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>FPSO</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Floating Production Storage
        and Offloading System.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Infilling wells</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>LNG</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>LPG</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Margin</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Mineral Storage</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Modulation Storage</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Natural gas liquids (NGL)</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>Cl&#244;
    <tr>
        <td valign="top" width="26%"><i>Network Code</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">A code containing norms and
        regulations for access to, management and operation of
        natural gas pipelines.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Over/Under lifting</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Primary balanced refining
        capacity</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Production Sharing
        Agreement (&quot;PSA&quot;)</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Contract in use in African,
        Middle Eastern, Far Eastern and Latin American countries,
        among others, 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 that has an 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&#146;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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Proved reserves</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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 the impact of changes on
        existing prices on 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&#146;s determination to develop existing
        reserves.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Reserve life index</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Reserve replacement ratio</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">Measure of the reserves
        produced replaced by proved reserves. Indicates the
        company&#146;s ability to add new reserves through
        exploration and purchase of property. A rate higher than
        100% indicates that more reserves were added than
        produced in the period. The ratio should be averaged on a
        three year period in order to reduce the distortion
        deriving from the purchase of property or upstream
        assets, the revision of previous estimates, enhanced
        recovery, improvement in recovery rates and changes in
        the value of reserves &#150; in PSAs &#150; due to
        changes in international oil prices.</td>
    </tr>
    <tr>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Ship-or-pay</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Strategic Storage</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Take-or-pay</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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="26%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="26%"><i>Upstream/Downstream</i></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="71%">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 align="center" style="page-break-before:always"><font size="3"><b>ABBREVIATIONS</b></font></p>

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

<table border="0" cellpadding="0" cellspacing="0" width="30%">
    <tr>
        <td valign="top" width="18%">mmCF</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">million cubic feet </td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BCF</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">billion cubic feet</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">mmCM</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">million cubic meters</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BCM</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">billion cubic meters</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BOE</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">barrel of oil equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">KBOE</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">thousand barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">mmBOE</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">million barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BBOE</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">billion barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BBL</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">barrels</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">KBBL</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">thousand barrels </td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">mmBBL</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">million barrels</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">BBBL</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">billion barrels</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">/d</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">per day</td>
    </tr>
    <tr>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="74%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="18%">/y</td>
        <td valign="top" width="8%">=</td>
        <td valign="top" width="74%">per year</td>
    </tr>
</table>

<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%">

<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 had a negligible impact on production
        expressed in BOE.</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 Consolidated Financial Statements of Eni have been
prepared in accordance with IFRS issued by the International
Accounting Standards Board (IASB) and adopted by the European
Commission following the procedure contained in Article 6 of the
EC Regulation No. 1606/2002 of the European Parliament and
Council of July 19, 2002. Until December 31, 2004, Eni prepared
its Consolidated Financial Statements and other interim financial
information (including quarterly and semi-annual data) in
accordance with Italian GAAP. IFRS require adopting companies to
restate only one year of past financial statements. Pursuant to
SEC Release 33-8567, <i>&quot;First-time Application of
International Financial Reporting Standards</i>&quot;, Eni is not
required to include in this annual report financial statements
for any earlier periods. Accordingly the tables below show Eni
selected historical financial data prepared in accordance with
IFRS as of and for the years ended December 31, 2004 and 2005 and
in accordance with U.S. GAAP for the five year period ended
December 31, 2005. The selected historical financial data are
derived from Eni&#146;s Consolidated Financial Statements
included herein. IFRS, under which Eni&#146;s Consolidated
Financial Statements have been prepared, differ in certain
significant respects from U.S. GAAP. For information on the
differences between IFRS and U.S. GAAP as they relate to the Eni,
see Notes 33, 34 and 35 to the Eni&#146;s 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>
        </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>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>
        <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>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="60%" bgcolor="#EEEEEE"><font
        size="2"><b>CONSOLIDATED PROFIT STATEMENT DATA<br>
        </b>&nbsp;&nbsp;&nbsp;</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"><b>Amounts
        in accordance with IFRS </b>(euro):</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</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">57,545</font></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">73,728</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Operating
        profit</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration &amp;
        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">&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">8,185</font></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">12,574</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas
        &amp; Power</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%"><p align="right"><font
        size="2">3,428</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">3,321</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refining &amp;
        Marketing</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">1,080</font></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">1,857</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petrochemicals</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%"><p align="right"><font
        size="2">320</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">202</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oilfield Services
        Construction and Engineering</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">203</font></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">307</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
        activities</font></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%">&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">(395</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">(902</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and
        financial companies</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">(363</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">(391</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
        profit in inventory <sup>(1)</sup></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%"><p align="right"><font
        size="2">(59</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">(141</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">Operating profit</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">12,399</font></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">16,827</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net profit
        pertaining to Eni</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%"><p align="right"><font
        size="2">7,059</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">8,788</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Data per ordinary share</b> (euro)<sup> (2)</sup>:</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">Operating
        profit </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%"><p align="right"><font
        size="2">3.29</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">4.48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net profit: basic and diluted </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">1.87</font></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">2.34</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Data
        per ADS</b> ($) <sup>(2) (3)</sup>:</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Operating profit</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">8.91</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net
        profit: basic and diluted </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%"><p align="right"><font
        size="2">5.06</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">5.54</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Amounts in accordance with U.S. GAAP </b>(euro):</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">Net sales
        from operations </font></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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">70,331</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Operating profit <sup>(4)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,853</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">15,528</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Profit
        before cumulative effect of change in accounting
        principle and income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10,330</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">8,350</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">9,274</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">12,324</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">16,281</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net profit before cumulative effect of change in
        accounting principle</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">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>
        <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">Effect of
        adoption of SFAS No. 143</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">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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2">Net profit</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,583</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Data
        per ordinary share</b> (euro) <sup>(2)</sup>:</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Operating profit </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.26</font></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">2.05</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">2.44</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">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">4.13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net
        profit: basic and diluted</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.62</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">1.38</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">1.67</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">1.70</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">2.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Data per ADS</b> ($) <sup>(2) (3)</sup>:</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">Operating
        profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4.02</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">4.30</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">6.15</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">8.42</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">9.78</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net profit: basic and diluted</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.88</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.89</font></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">4.21</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.60</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.78</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>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p style="page-break-before:always"><font size="2">&nbsp;&nbsp;&nbsp;</font></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>
        </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>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>
        <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>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="60%"><font size="2"><b>CONSOLIDATED
        BALANCE SHEET DATA</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Amounts
        in accordance with IFRS:</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Total
        assets </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">72,853</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">83,850</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Short-term and long-term debt </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,684</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,998</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Capital
        stock issued </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,005</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Amounts in accordance with U.S. GAAP:</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Total
        assets </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">64,976</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">66,122</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">71,995</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">72,354</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">82,977</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Short-term and long-term debt </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,379</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15,320</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">16,144</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,697</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,954</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Capital
        stock issued </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,001</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,003</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,005</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Other Financial Information in accordance
        with IFRS:</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Capital
        expenditure </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,499</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,414</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Weighted average number of ordinary shares
        outstanding (shares million) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,912</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,827</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,778</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,772</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,759</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Dividend
        per share (euro) </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.750</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.750</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.750</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.900</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.100</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Dividend per ADS ($) <sup>(5)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.48</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.71</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.83</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.17</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.63</font></td>
    </tr>
</table>

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

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

<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">Unrealized
        profit in inventory concerned intragroup sales of goods
        and services.</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <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">Euro per
        Share or dollars per American Depositary Share (ADS), as
        the case may be. Starting from December 2005 one ADS
        represents two Eni shares. Previously one ADS was
        equivalent to five Eni shares. Data per ADS for prior
        periods have been recalculated accordingly. Earnings per
        share is calculated by dividing net profit 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">(3)</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 U.S. dollars are included
        solely for the convenience of the reader. The convenient
        translations should not be construed as representations
        that the amounts in euros have been, could have been, or
        could in the future be, converted into U.S. dollars at
        this or any other rate of exchange. Data per ADS, with
        the exception of dividend per ADS in the years 2001 to
        2004, were translated at the Noon Buying Rate of December
        31 for each year presented ($0.8901, 1.0485, 1.2597
        1.3538 and 1.1842 = euro 1.00 as of December 31, 2001,
        2002, 2003, 2004 and 2005, respectively). Dividend per
        ADS for the years 2001 through 2004 has been translated
        into U.S. dollars using for each year presented the Noon
        Buying Rate on the payment date. On June 12, 2006, the
        Noon Buying Rate was $1.26 per euro 1.00.</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">See Note 34
        to the Consolidated Financial Statements for details of
        operating profit under U.S. GAAP by business segment for
        the last two years.</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">Historic
        dividends of the four years 2001-2004 were converted at
        the Noon Buying Rate of the pay-out date. The dividend
        for 2005 was converted at the Noon Buying Rate of the
        interim dividend (euro 0.45 per share) pay-out date,
        occurred on October 27, 2005. The balance of euro 0.65
        per share payable on June 22, 2006 was translated at the
        Noon Buying Rate of December 31, 2005.</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&#146;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, 2001, 2002, 2003, 2004, 2005. Data on proved
reserves, production of oil and natural gas and hydrocarbon
production sold includes Eni&#146;s share of reserves and
production of affiliates and joint ventures accounted for under
the equity or cost method of accounting.</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>
        </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>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>
        <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>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Proved
        reserves of oil at period end (mmBBL)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,948</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,783</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,138</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,008</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,773</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Proved reserves of natural gas at period end
        (BCF)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17,072</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,629</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,008</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,435</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17,591</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Proved
        reserves of hydrocarbons in mmBOE at period end <sup>(1) </sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,929</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,030</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,272</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,218</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,837</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Reserve replacement ratio <sup>(2)</sup> (three
        year average)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">226</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">202</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">179</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">117</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">89</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Reserve
        life index <sup>(3)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">13.7</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">13.2</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.7</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.1</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10.8</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Average daily production of oil (KBBL/d)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">857</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">921</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">981</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,034</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,111</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Average
        daily production of natural gas available for sale
        (mmCF/d) <sup>(4)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,827</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,015</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,174</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,171</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,344</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Average daily production of hydrocarbons
        available for sale (KBOE/d) <sup>(4)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,353</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,449</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,536</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,586</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,693</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Hydrocarbon
        production sold (mmBOE) </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">499.7</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">523.3</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">556.2</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">576.5</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">614.9</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Oil and gas production costs per BOE <sup>(5)</sup>
        </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3.85</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3.83</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.16</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.92</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.59</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Profit per
        barrel of oil equivalent <sup>(6)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.48</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.08</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.95</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">8.87</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.20</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Sales of natural gas to third parties <sup>(7)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">63.72</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">64.12</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">69.49</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">72.79</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">77.08</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Natural
        gas consumed by Eni <sup>(7)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.00</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.02</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.90</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.54</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.38</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.40</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.94</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.32</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8.53</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Total
        sales and own consumption of natural gas <sup>(7)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">67.10</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">68.54</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">78.33</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">83.81</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">91.15</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Transport of natural gas for third parties in
        Italy <sup>(7)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.41</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">19.11</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24.63</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">28.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">30.22</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Length of
        natural gas transport network in Italy at period end <sup>(8)</sup>
        </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">29.6</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">29.8</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">30.1</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">30.2</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">30.7</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Electricity production sold <sup>(9)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.99</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.00</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.55</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13.85</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22.77</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Refined
        products production <sup>(10)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">37.78</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">35.55</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">33.52</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">35.75</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">36.68</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Balanced capacity of wholly-owned refineries <sup>(11)</sup>
        </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">664</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">504</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">504</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">504</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">524</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Capacity
        utilization of wholly-owned refineries <sup>(12)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">97</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">99</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">100</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">100</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">100</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Number of service stations at period end (in
        Italy and outside Italy) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11,707</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,762</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,647</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">9,140</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,282</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Average
        throughput per service station (in Italy and outside
        Italy) <sup>(13)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,685</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,858</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,109</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,488</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,479</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals production <sup>(10)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.83</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.12</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.91</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.12</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.28</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Oilfield
        Services Construction and Engineering order backlog at
        period end <sup>(14)</sup> </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,937</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10,065</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9,405</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">8,521</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9,964</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Employees at period end (units) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">72,405</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">80,655</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">75,421</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">70,348</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">72,258</font></td>
    </tr>
</table>

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

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

<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="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        approximately 728, 779, 747, 737 and 760 BCF of natural
        gas held in storage in Italy at December 31, 2001, 2002,
        2003, 2004 and 2005, respectively. See &quot;Item 4
        &#150; Information on the Company &#150; Exploration
        &amp; 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 35 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 35 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, 220 and 250 mmCF/d in 2001, 2002, 2003,
        2004 and 2005, 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 under U.S. GAAP divided by actual production net
        of production volumes of natural gas consumed in
        operations. See the unaudited supplemental oil and gas
        information in Note 35 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 35 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
        BCM.</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
        thousand 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
        terawatthour.</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
        million 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
        thousand liters per day. Referred to the Agip
        brandednetwork.</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">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>The following table sets forth, for the periods indicated,
certain information regarding the Noon Buying Rate in U.S.
dollars per euro, rounded to the second decimal (Source: The
Federal Reserve Board).</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>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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>U.S.
        dollars per euro</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="68%"><font size="2">Year ended
        December 31,</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2001 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.95</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.84</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.90</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.89</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2002 </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.05</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.86</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.95</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.05</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2003 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.04</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2004 </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.36</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.18</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.24</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.35</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2005 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.35</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.17</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.24</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.18</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="69%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </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>U.S.
        dollars per euro</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">December 2005 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.20</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.17</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.18</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">January
        2006 </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.23</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.20</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.22</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">February 2006 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.21</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.19</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.19</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">March 2006
        </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.22</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.19</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.21</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">April 2006 </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.21</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">May 2006 </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.29</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.26</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.28</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">June 2006 (through June 12, 2006) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.30</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.26</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </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 the Telematico and the dollar price of the ADSs on the
NYSE. Exchange rate fluctuations 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 12, 2006 was $1.26 per euro 1.00.</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.</p>

<p>In the Exploration &amp; Production business, Eni encounters
competition from other international oil companies for obtaining
exploration and development rights, particularly outside Italy.
The current trend of the industry towards a reduction of the
number of operators via takeovers or mergers might lead to
possibly stronger competition from operators with greater
financial resources and a wider portfolio of development
projects.</p>

<p>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 Italian market to competition, limitations to the size of
gas companies relative to the market and third party access to
transport infrastructure. In addition, Legislative Decree No.
164/2000 grants the Italian Authority for Electricity and Gas
certain regulatory powers in the matters of natural gas pricing
and access to infrastructure, among others. In its electricity
business, Eni competes with other producers from Italy or outside
Italy which sell electricity on the Italian market.</p>

<p>Eni faces competition from several international oil companies
in its refinery and refined product marketing businesses. In
retail marketing both in and outside Italy, Eni competes with
third parties (including international oil companies and local
operators such as supermarket chains) to obtain concessions to
establish and operate service stations. Once established,
Eni&#146;s service stations compete primarily on the basis of
pricing, 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.</p>

<p>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).<br>
</p>

<blockquote>
    <p><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. 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. Exploring or drilling in
offshore areas, in particular in deep water, is generally more
complex and riskier than in onshore areas; so is exploratory
activity in remote areas or in challenging environmental
conditions as in the case of the Caspian Region or Alaska.</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. Deep water 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. In
addition, lack of necessary equipments such as a shortage of deep
water rigs, could further delay operations, thus increasing both
operational and financial risks.</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.
Eni&#146;s future results of operations rely upon its ability to
develop and operate major projects as planned. Key factors that
may affect the economics of those projects include:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149; </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the outcome of negotiations
        with co-venturers, governments, suppliers, customers or
        others (including, for example, Eni&#146;s ability to
        negotiate favorable long-term contracts with customers,
        the development of reliable spot markets that may be
        necessary to support the development of particular
        production projects, or commercial arrangements for
        pipelines and related equipment to transport and market
        hydrocarbons);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149; </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">timely issuance of permits
        and licenses by governmental agencies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149; </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the occurrence of technical
        difficulties including delays in manufacturing and
        delivery of critical equipment, and, risks associated
        with the use of new technologies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149; </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">changes in operating
        conditions and costs, including costs of third party
        equipment or services such as drilling rigs and shipping;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the actual performance of
        the reservoir and natural field decline;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the availability of third
        party equipment or services; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the ability and time
        necessary to realize suitable transport infrastructures
        to export production towards final markets.</td>
    </tr>
</table>

<p>Furthermore, deep water 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 and start-up of
production from such projects and, consequently, the actual
returns on such projects.</p>

<blockquote>
    <p><i>Inability in replacing oil and natural gas reserves
    could adversely impact operations and earnings</i></p>
</blockquote>

<p>Eni&#146;s operations and earnings are substantially dependent
on our ability to develop and sell oil and natural gas. Unless we
are able to replace produced oil and natural gas, our reserves
will decline. Future oil and gas production are dependent on the
company&#146;s ability to access new reserves through new
discoveries, application of improved techniques, success in
development activity, negotiation with countries and other owners
of known reserves and acquisitions. An inability to replace
reserves could adversely impact future production and future
results of operations.</p>

<blockquote>
    <p><i>Lifting and development costs are increasing and this
    could reduce profit per BOE for the oil industry</i></p>
</blockquote>

<p>Profit margins in the oil industry are being affected by a
steady rising trend in lifting and development costs as a result
of the following: (i) the increasingly high percentage of complex
development projects (such as those in deep and ultra deep waters
and in harsh environments) which bear higher development costs as
compared to development projects in traditional environments;
(ii) inflationary pressure affecting purchase prices of raw
materials and services in connection to the worldwide economic
recovery; and (iii) lack of specialized resources (such as
engineers and other valuable technicians) especially in remote
areas. Eni&#146;s management expects this rising trend of lifting
and development costs to continue in the medium term and this
could lead to a reduction in profit per BOE.</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&#146;s control. OPEC
member countries control production of a significant portion of
the worldwide supply of oil and can exercise substantial
influence on 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 could have an adverse impact on Eni&#146;s results of
operations.<br>
</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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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. 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="1%">&nbsp;</td>
        <td valign="top" width="97%">the production performance
        of Eni&#146;s reservoirs.</td>
    </tr>
</table>

<p>Many of these factors, assumptions and variables involved in
estimating proved reserves are beyond Eni&#146;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 adversely impact Eni&#146;s financial
results, leading to increased depreciation, depletion and
amortization charges and/or impairment charges, which would
reduce earnings and shareholders&#146; equity.<br>
</p>

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

<p>Substantial portions of Eni&#146;s hydrocarbon reserves are
located in countries outside the EU and North America, some of
which may be politically or economically less stable than EU or
North American countries. At December 31, 2005, approximately 73%
of Eni&#146;s proved hydrocarbon reserves were located in such
countries. Similarly, a substantial portion of Eni&#146;s natural
gas supply comes from countries outside the EU and North America.
In 2005, approximately 60% of Eni&#146;s supplies 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 operating in politically unstable countries Eni
faces risks in connection with the following: (i) lack of
well-established and reliable legal systems; (ii) other political
developments and laws and regulations (such as expropriation or
forced divestiture of assets and unilateral cancellation or
modification of contract terms), for example in April 2006,
Eni&#146;s titles and mineral assets relating to an important oil
field were transferred to the Venezuelan state oil company
following its unilateral cancellation of the contract regulating
oil activities in the field; (iii) restrictions on exploration,
production, imports and exports; (iv) tax or royalty increases
(including retroactive claims); and (v) civil unrest, for example
in the first quarter of 2006 certain episodes of civil unrest in
Nigeria caused disruptions at certain Eni oil producing
facilities. See &quot;Item 4 &#150; Exploration &amp; Production
&#150; Oil and Natural Gas Reserves&quot;; and &quot;Item 5
&#150; Recent Developments&quot;.</p>

<p>In August 1996, the United States adopted the Iran and Libya
Sanctions Act (the &quot;Sanctions Act&quot;) with the objective
of denying Iran and Libya the ability to support acts of
international terrorism and fund the development or acquisition
of weapons of mass destruction. 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-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. However, a bill
to amend and extend the extra-territorial reach of the economic
sanctions imposed by the United States with respect to Iran has
been passed by the U.S. House of Representatives and may lead to
the passage of new laws in this area. Iran continues to be
designated by the U.S. State Department as a State sponsoring
terrorism. For a description of Eni&#146;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
World&quot;.<br>
</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&#146;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&#146;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.<br>
</p>

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

<p>Legislative Decree No. 164/2000 opened completely the Italian
natural gas market 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&#146;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="1%">&nbsp;</td>
        <td valign="top" width="97%">until December 31, 2010,
        antitrust thresholds for operators will be calculated as
        a percentage share of national consumption 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; and (ii) effective January
        1, 2003, 50% for sales to final customers. Compliance
        with these ceilings is verified annually by comparing the
        allowed average percentage on a three year basis for
        volumes input or sold to the average percentage obtained
        by each operator in the same three year period. Allowed
        percentages are calculated 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="1%">&nbsp;</td>
        <td valign="top" width="97%">transport of natural gas by
        means of high pressure trunklines, storage of natural
        gas, LNG facilities 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; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">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
        certain conditions set by the Authority for Electricity
        and Gas.</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&#146;s natural gas margin</i><a href="#nota 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 15 years.
Existing contracts, which in general contain take-or-pay clauses,
will ensure total delivery of approximately 67.3 BCM/y of natural
gas (Russia 28.5, Algeria 21.5, the Netherlands 9.8, 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 and sales volumes in Italy, Eni signed
multi-year contracts with third party importers in Italy and
started implementing a strategy of increasing natural gas sales
in the rest of Europe in order to sell outside Italy natural gas
volumes available under its take-or pay contracts, exceeding
mandatory thresholds. In prior years Eni sold the majority of its
natural gas availability on the Italian market. This change in
the sale mix is structural and is adversely affecting Eni&#146;s
results of operations. Further, management expects Eni&#146;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 impact of the build-up of Eni&#146;s supplies to
the above mentioned Italian importers.</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&#146;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&#146;s results of
operations.</p>

<blockquote>
    <p><i>If Eni fails to grow natural gas sales in Europe as
    planned, Eni may be unable to fulfill its minimum take
    obligations under take-or-pay purchase contracts and this
    could adversely impact results of operations</i></p>
</blockquote>

<p>Over the medium term, Eni plans to increase its natural gas
sales in Europe also to absorb its natural gas availability under
take-or-pay contracts. Should Eni fail to increase natural gas
sales in Europe as planned, Eni may be unable to sell all the
volumes of natural gas purchased under take-or-pay contracts, and
this could adversely impact 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 the natural gas
    volumes which Eni is committed to purchase under take-or-pay
    contract obligations</i></p>
</blockquote>

<p>Over the next few years, Eni plans to import certain volumes
of natural gas using the highest purchase flexibility as provided
for by its take-or-pay purchase contracts. Eni also assumes that
it will be entitled to the necessary transport capacity on the
Italian transport infrastructure. However, Eni planning
assumptions are inconsistent with current rules regulating the
access to Italian transport infrastructure as provided for by the
Network Code drafted under Decision No. 137 of July 17, 2002 of
the Authority for Electricity and Gas. Such rules established
certain priority criteria for the entitlement to transport
capacity of natural gas at points where the Italian transport
infrastructure connects with international transport networks
(the so-called entry points to the Italian transport system). In
particular current rules establish that take-or-pay contracts
entered into before 1998, as in the case of Eni, have the right
to a priority in the entitlement to available transport capacity
equal to 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&#146;s
right to offtake daily volumes larger than the average daily
contractual volume; this contractual flexibility provided by the
difference between the maximum daily volume Eni is allowed to
purchase 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 entitled to available transport capacity in
proportion with requests from operators. 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&#146;s
results of operations could be adversely affected should market
conditions and/or regulatory constraints prevent Eni from selling
its whole availability of natural gas purchased to fulfill
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 offtake a smaller volume of gas than the
minimum contractual off 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&#146;s results of
    operations</i></p>
</blockquote>

<p>Eni cannot predict future developments in the regulation of
the Italian natural gas market. Also an institutional debate is
ongoing in Italy regarding the liberalization of the natural gas
market and this may produce significant developments on this
matter. A brief description follows of certain recently enacted
laws and certain proceedings before the Authority for Electricity
and Gas and the Italian Antitrust Authority in order to allow
investors to gain some insight of the complexity of this matter.
For a full discussion of laws and procedures described herein see
&quot;Item 4 &#150; Regulation of the Italian Hydrocarbons
Industry &#150; Gas &amp; Power &quot;.</p>

<p>In 2003, Law No. 290 was enacted 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).</p>

<p>On the basis of the findings of a joint inquiry conducted from
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, transport and
storage 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.</p>

<p>In October 2005, the Authority for Electricity and Gas started
an inquiry concerning the competitive behavior of operators
selling natural gas to residential and commercial customers with
the aim of defining measures to improve competition.</p>

<p>In February 2006, the Antitrust Authority closed an inquiry
concerning Eni&#146;s competitive behavior concluding that Eni
abused its dominant position with regard to its decision to
suspend a plan for the upgrading of the import pipeline from
Algeria and to unilaterally cancel certain contracts to sell the
relevant transport capacity to third parties. Contracts were
signed early in 2003 and the relevant upgrade is expected to
become effective in 2007. The Antitrust Authority fined Eni by an
amount of euro 290 million.</p>

<p>On May 5, 2006, the European Commission started an inquiry in
order to verify an alleged abuse of dominant position on the part
of Eni in violation of Article 82 of the EEC Treaty and Article
54 of the CES Agreement in the activities of international gas
transport and wholesale and retail supply of gas.</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 developments
on these matters.</p>

<blockquote>
    <p><i>Eni believes an oversupply of natural gas is likely to
    occur in the long-term (beyond 2009)</i></p>
</blockquote>

<p>Eni plans to upgrade its natural gas import infrastructure
from Algeria and Russia to Italy, with expected start-up in 2008
and late 2008/2009, respectively. Taking into account the
build-up of supplies of natural gas from Libya through the
Greeenstream gasline and of Eni&#146;s fourth long term
take-or-pay purchase contract from Russia, an additional import
capacity of 883 BCF/y is expected to be available for the Italian
natural gas market starting in 2009. A large portion of this
expected import capacity has been or is planned to be awarded to
third parties. In addition, certain operators in the Italian
natural gas market have publicly announced plans to develop LNG
terminals in Italy. Eni expects at least one new LNG terminal
with a 283 BCF/y capacity to start operations by 2009 thus adding
new import capacity to the Italian market. Management believes
the pace of demand growth in the Italian natural gas market may
not meet the expected increase in supplies of natural gas market
starting in 2009 and beyond. If this projections materialize, a
decrease in natural gas margins is likely to occur.</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 monitoring 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. In particular, with Decision No.
248/2004 the Authority for Electricity and Gas established, among
other things: (i)&nbsp;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 case
international prices of Brent crude oil exceed the 35 dollars per
barrel threshold; and (ii) that Italian natural gas importers
&#150; including Eni &#150; must renegotiate supply contracts to
wholesalers in order to take account of the reduction of the
price of natural gas sold to residential and commercial users. A
proceeding has commenced between the Authority for Electricity
and Gas and Eni, which appealed Decision No. 248/2004 to an
administrative court.</p>

<p>Eni&#146;s management expects a negative outcome of this
matter. Eni has accrued a material provision in its 2005
Consolidated Financial Statements in order to reflect the risks
associated with this matter. In 2006 management expects
Eni&#146;s results of operations to be adversely impacted by a
material amount in light of the high Brent crude oil prices, in
the event Decision 248/2004 is implemented in its original form.
See &quot;Item 4 &#150; Regulation of the Italian Hydrocarbons
Industry &#150; Gas &amp; Power&quot; and &quot;Item 5 &#150;
Financial Review and Prospects&quot;.<br>
</p>

<blockquote>
    <p><b><i>Environmental Regulation</i></b></p>
    <p><i>Eni may incur material operating costs and liabilities
    in relation to compliance with applicable environmental
    regulations and future 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 production, 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
certain operations and products of Eni, 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 on Eni&#146;s Consolidated Financial
Statements as a result of its compliance with such laws and
regulations, there are risks that Eni may incur significant costs
and liabilities in future years due to: (i) the chance of as yet
unknown contamination; (ii) future developments in environmental
regulation; (iii) the results of on-going surveys or surveys to
be carried out on the environmental status of Eni&#146;s
industrial sites and other possible effects deriving from the
implementation of Decree No. 471/1999 of the Ministry of
Environment; (iv) the possible effects deriving from the
implementation of certain enacted regulations 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 deriving from the application of European
directive 2004/35/EC concerning environmental responsibility for
prevention and reclamation of environmental damage; 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.<br>
</p>

<blockquote>
    <p><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 results of
operations on the basis of information available to date and
taking account of 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 regarding the outcome of each proceeding; (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.<br>
</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;&nbsp;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.<br>
</p>

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

<p>Movements in the exchange rate of the euro against the U.S.
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, U.S. dollars, while a
significant portion of Eni&#146;s expenses are denominated in
euro. Similarly, prices of Eni&#146;s petrochemical products are
generally denominated in, or linked to, the euro, whereas
expenses in the Petrochemicals segment are denominated both in
euro and U.S. dollars. Accordingly a depreciation of the U.S.
dollar versus the euro generally has an adverse impact on Eni
results of operations.<br>
</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.<br>
</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 to its financial debt.<br>
</p>

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

<p>The preparation of financial statements entails accounting
estimates that are characterized by a high degree of uncertainty,
complexity and judgment. 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>

<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 72,258 employees as of December 31, 2005.</p>

<p>Eni, the former Ente Nazionale Idrocarburi, a public law
agency, established by Law No. 136 of February 10, 1953, was
transformed into a joint stock company by Law Decree No. 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 No. 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, 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; and</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>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 SpA was established by
the Italian Government with a mandate to explore for and develop
oil and natural gas. Agip SpA was merged into Eni SpA effective
as of January 1, 1997 to become Eni&#146;s Exploration &amp;
Production Division.</p>

<p>Eni is engaged in exploration and production of hydrocarbons
in Italy, North Africa, West Africa, the North Sea, the Gulf of
Mexico, Australia, South America and areas with great development
potential such as the Caspian Sea, the Middle and Far East, India
and Alaska. In 2005, Eni&#146;s hydrocarbon production available
for sale averaged 1,693 KBOE/d and, at December 31, 2005,
Eni&#146;s estimated proved reserves totalled 6,837 mmBOE with a
life index of 10.8 years. In 2005, Eni&#146;s Exploration &amp;
Production segment had net sales from operations (including
intersegment sales) of euro 22,477 million and operating profit
of euro 12,574 million.</p>

<p>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. Snam SpA was merged into Eni SpA effective as of
February 1, 2002 to become Eni&#146;s Gas &amp; Power Division.
In 2005, Eni&#146;s sales of natural gas to third parties
totalled 52.47 BCM in Italy and 23.44 BCM in the rest of Europe;
Eni&#146;s share of natural gas volumes sold by its affiliates
totalled 8.53 BCM (of which 7.85 billion was sold 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 5.54 BCM.
Natural gas sales in Italy include: (i) sales to wholesalers,
mainly local companies selling natural gas to residential and
commercial customers, and to large industrial and thermoelectric
customers which are supplied by a high and medium pressure
pipeline network; and (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 30,700-kilometer 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 2005 its transported volumes were
85.10 BCM, of which 30.22 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 1,282 municipalities through a low pressure network
consisting of approximately 48,000 kilometers of pipelines as of
December 31, 2005.</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 4.5 gigawatt as of December 31, 2005. In 2005, sold
production of electricity totalled 22.77 terawatthours. 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 2005, Eni&#146;s Gas &amp; Power segment had net sales from
operations (including intersegment sales) of euro 22,969 million
and operating profit of euro 3,321 million.</p>

<p>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. AgipPetroli SpA was merged into
Eni SpA effective December 31, 2002 to become Eni&#146;s Refining
&amp; Marketing Division. Eni&#146;s refining and marketing
activities are located primarily in Italy and in the rest of
Europe. In 2005, Eni&#146;s retailing market share for refined
products in Italy through its Agip-branded network of service
stations was 29.7%. In 2005, Eni divested its wholly-owned
subsidiary Italiana Petroli which is engaged in the retail
marketing of refined products through a network consisting
primarily of leased service stations, under the IP brand. In
2005, sales of refined products totalled 51.63 million tonnes, of
which 30.29 million were in Italy. The balanced refining capacity
of Eni&#146;s wholly-owned refineries totalled 524 KBBL/d as of
December 31, 2005. In 2005, Eni&#146;s Refining &amp; Marketing
segment had net sales from operations (including intersegment
sales) of euro 33,732 million and operating profit of euro 1,857
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 2005, Eni
sold 5.4 million tonnes of petrochemical products. In 2005,
Eni&#146;s Petrochemicals segment had net sales from operations
(including intersegment sales) of euro 6,255 million and an
operating profit of euro 202 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 2005,
Eni&#146;s Oilfield Services, Construction and Engineering
segment had net sales from operations (including intersegment
sales) of euro 5,733 million and operating profit of euro 307
million.</p>

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

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

<p>Eni plans to deploy a strategy of organic growth intended to
sustain the group&#146;s business over the long-term.</p>

<p>In the Exploration &amp; Production activities, Eni plans to
grow production of oil and natural gas through organic growth,
targeting a production level of more than 2 mmBOE/d in 2009,
which corresponds to a compound average growth rate of
approximately 4% under certain trading environment assumptions
(See &quot;Item 5 &#150; Management Expectations of
Operations&quot;). Eni plans to reach said production target by
leveraging in particular on the contribution of recently
completed large development projects and projects in the
development phase in Angola, Libya, Nigeria, Egypt, Iran, Algeria
and Kazakhstan. Management will continue to evaluate
opportunities to increase production through the purchase of
corporations or individual assets. Eni intends to pay special
attention to reserve replacement in order to ensure the medium to
long-term sustainability of its business. Eni intends to optimize
its portfolio of development properties by focusing on areas
where its presence is established, seeking for new opportunities
and divesting marginal assets. Eni intends to develop its LNG
business also through the purchase of interests in liquefaction
plants in order to better exploit its natural gas reserves in
North and West Africa. In exploration activities Eni intends to
renew its portfolio of properties focusing on such areas where
management believes a high mineral potential exists, on assets in
areas where its presence is established (in particular Egypt,
Nigeria, the United States, Italy and Norway) and to start
exploration in newly acquired areas (in particular Alaska, Libya
and India).</p>

<p>In the Gas &amp; Power activities, Eni plans to grow natural
gas sales in the rest of Europe and to develop its presence 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 and increasingly intense
competition. In Italy, Eni plans to comply with regulatory limits
on direct sales and input volumes to the national transport
network by optimizing 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. In the medium
term, management expects its natural gas sales in Italy to
decline from the 58 BCM level recorded in 2005 as a consequence
of increasing competition from third parties. Eni plans to
implement a more attractive commercial offer than Eni&#146;s
competitors&#146; on the basis of the quality of services,
pricing formulas including different indexation schemes to suit
various customers&#146; purchasing profile and the integration of
supply of gas and electricity. Management plans to grow natural
gas sales on European markets by leveraging on the availability
of Eni&#146;s equity gas and on a diversified portfolio of supply
contracts, an extensive gas pipeline network, which allows for
the supply of natural gas from several sources, and long standing
relationships with producing countries. Eni intends to strengthen
its presence in markets where its presence is already established
&#150; such as the Iberian Peninsula, Germany and Turkey &#150;
and to develop sales in markets with significant growth and
profitability prospects (in particular France and the United
Kingdom).</p>

<p>In the Refining &amp; Marketing activities, Eni intends to
maximize returns from its existing assets. In the refining
activity Eni plans to invest in new primary distillation capacity
and in new conversion capacity to make its refining system
flexible enough to obtain a higher yield of middle distillates
and to achieve a greater vertical integration with its upstream
activities. In marketing Eni aims to improve its competitive
position in Italy and to increase sales in selected neighboring
countries in the Rest of Europe. </p>

<p>Eni&#146;s oilfield services construction and engineering
activities play an essential role in contributing to
technological innovations and in the implementation of
world-scale projects thus supporting Eni&#146;s growth process in
the oil &amp; gas business.</p>

<p>In technological research and innovation activities Eni plans
to implement a relevant capital expenditure programme to develop
such technologies that management believes may ensure competitive
advantages in the long-term and promote sustainable growth. Eni
plans to continue developing existing programmes on clean fuels,
sulphur and greenhouse gas management as well as projects such as
the upgrading of heavy crudes (EST), high pressure gas
transmission (TAP) and Gas to Liquids (GTL).</p>

<p>In pursuing this strategy Eni plans a capital expenditure
programme amounting to euro 35.2 billion over the next four
years. Eni plans to finance this capital expenditure programme by
using the cash provided by operating activities. Over the next
four year period, the Company expects to distribute to its
shareholders a flow of dividends in line with the level of 2005
under certain assumptions (See &quot;Item 8 &#150;
Dividends&quot;). Eni aims to allocate cash flow in excess of
capital expenditure and dividend requirements to continue its
programme of share buy-back while at the same time maintaining a
strong balance sheet. See &quot;Item 5 &#150; Management
Expectations of Operations&quot;.<br>
</p>

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

<p>The most significant events that occurred during 2005 and to
date in 2006 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="1%">&nbsp;</td>
        <td valign="top" width="97%">In 2005, hydrocarbon
        production available for sale averaged 1,693 mmBOE/d, a
        6.7% increase compared to year 2004. Eni&#146;s net
        proved reserves of oil and natural gas were 6.84 BBOE
        (55% crude and condensates), down 381 mmBOE from 2004 due
        to an estimated 478 mmBOE adverse impact related to lower
        entitlements in certain PSAs and buy-back contracts due
        to higher oil prices (58.21 dollar per barrel at year end
        2005 as compared to 40.47 at year end 2004). Eni&#146;s
        reserves replacement ratio was 40%; the average reserve
        life index was 10.8 years (12.1 in 2004).</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">In May 2005, the new setup
        of the consortium operating the North Caspian Sea PSA was
        defined. As a result of the transaction, Eni&#146;s
        operatorship interest in the Kashagan project increased
        from 16.67% to 18.52%. Eni plans a capital expenditure
        programme amounting to $29 billion in order to develop
        the field reserve. Management is currently reviewing this
        amount in order to take account of the depreciation of
        the U.S. dollar versus the euro and rising trends in the
        cost of certain production factors (such as materials and
        oilfield services). The development of the project is
        advancing as planned: first oil is expected by the end of
        2008 and the production plateau is targeted at over 1.2
        mmBBL/d.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">As part of its strategy of
        expansion in areas with high mineral potential, Eni
        enhanced its portfolio of mineral rights via acquisition
        of exploration permits and production licenses located in
        Libya, India, Alaska, Brazil, Nigeria, Australia,
        Pakistan and the Gulf of Mexico for a total acreage of
        67,000 square kilometers (44,000 net to Eni, of these 93%
        as operator).</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">In Angola oil production
        increased approximately 50% from the level of 2004
        reflecting mainly certain significant start-ups: phase B
        of the development of the fields discovered in the
        Kizomba offshore area in Block 15 (Eni&#146;s interest
        20%) and the North Sanha and Bomboco oil, condensate and
        LPG fields in Block&nbsp;0 former Cabinda (Eni&#146;s
        interest 9.8%).</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">As part of the Western
        Libyan Gas Project (Eni&#146;s interest 50%), in August
        2005 the offshore Bahr Essalam field was started-up, less
        than a year after the start-up of the onshore Wafa field.
        Peak production of the two fields is expected in 2006 at
        256,000 BOE/d (128,000 net to Eni). When fully
        operational in 2006 volumes produced and carried to Italy
        via the Greenstream pipeline will be 8 BCM/y of natural
        gas (4 billion net to Eni) already booked under long term
        supply contracts with operators.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Natural gas sales (91.15
        BCM) were up 8.8% due to increased demand for power
        generation in Italy and the acquisition of new customers
        combined with growth in markets in the rest of Europe as
        a result of the expansion strategy pursued by Eni.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">The agreement signed by Eni,
        Amorim Energia and Rede El&#233;ctrica Nacional &#150;
        shareholders of Galp with 33.34, 13.312 and 18.30%,
        respectively &#150; confers stability to the shareholding
        structure of the Portuguese energy company and sets the
        stage for future developments aimed at enhancing
        Eni&#146;s investment. The Portuguese Government is
        expected to sell part of its Galp holding through a
        public offer before the end of 2006.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">As part of its strategy of
        international expansion in LNG, Eni purchased 6 BCM/y for
        20 years of the regasification capacity of the Cameron
        terminal on the coast of Louisiana in the USA with
        start-up planned for 2008-2009. This will allow Eni
        access to markets in the United States for part of its
        natural gas reserves in North Africa and Nigeria.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Eni continues its
        development in power generation aimed at reaching 5.5
        gigawatt of installed capacity by 2009; at year end 2005
        installed capacity was 4.5 gigawatt. The new combined
        cycle power plants will absorb over 6 BCM/y of natural
        gas from Eni&#146;s portfolio of supplies.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">In 2005 Eni divested its
        total interest in Italiana Petroli SpA, which distributes
        fuels in Italy through a lease concession network under
        the IP brand.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">On April 1, 2006 the
        Venezuelan State oil company Petr&#243;leos de Venezuela SA
        (PDVSA) unilaterally cancelled the service contract
        regulating activities at the Daci&#243;n oil field where Eni
        acted as contractor with a 100% working interest.
        Accordingly, starting on the same day, operations at the
        Daci&#243;n oil field have been run by PDVSA which took over
        Eni Daci&#243;n BV, Eni&#146;s wholly-owned subsidiary that
        had been operating the field until that date. In 2005 and
        in the first quarter of 2006, oil production from the
        Daci&#243;n field averaged approximately 60 KBBL/d.
        Management expects Eni&#146;s proved reserves of
        hydrocarbons to be reduced by an amount of approximately
        175 mmBBL corresponding to Eni&#146;s net proved reserves
        of the Daci&#243;n field as of December 31, 2005 as a
        consequence of the loss of Eni&#146;s title to the field.</td>
    </tr>
</table>

<p>In 2005, capital expenditure amounted to euro 7.4 billion, of
which 91% related to the Exploration &amp; Production, Gas &amp;
Power and Refining &amp; Marketing segments, and was primarily
related to: (i) the development of oil and gas reserves (euro
3,952 million) in particular in Kazakhstan, Libya, Angola, Italy
and Egypt, exploration projects (euro 656 million) and the
purchase of proved and unproved property (euro 301 million); (ii)
upgrading of Eni&#146;s natural gas transport and distribution
networks in Italy (euro 825 million); (iii) the continuation of
construction of combined cycle power plants (euro 239 million);
(iv) actions for improving flexibility and yields of refineries,
including the completion of construction of the tar gasification
plant at the Sannazzaro refinery, and the upgrade of the refined
product distribution network in Italy and in the rest of Europe
(overall euro 656 million); and (v) upgrading of vessels and
other equipment and facilities in Kazakhstan and West Africa in
the Oilfield services and construction business (euro 346
million).</p>

<p>In 2005 capital expenditure decreased by euro 85 billion over
2004, or 1.1%, due to a euro 299 billion reduction, or 20.6%, in
the Gas &amp; Power business due principally to the completion of
the Greenstream underwater pipeline project and the nearing to
completion of the power generation development plan.</p>

<p>In 2004, capital expenditure amounted to euro 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)&nbsp;upgrading 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 construction of electricity generation plants
(euro 451 million) and the completion of the Greenstream
underwater pipeline project (euro 159 million).</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 operates in the exploration and production of hydrocarbons
in Italy, North Africa, West Africa, the North Sea, the Gulf of
Mexico, Australia and South America. It also operates in areas
such as the Caspian Sea, the Middle and Far East, India and
Alaska where management believes a great mineral potential
exists. In 2005, Eni produced 1,693 KBOE/d; as of December 31,
2005, Eni&#146;s proved reserves totalled 6,837 mmBOE. Eni plans
to grow production of oil and natural through organic growth,
targeting a production level of more than 2 mmBOE/d in 2009 which
corresponds to a compound average growth rate of approximately 4%
under certain trading environment assumptions (See &quot;Item 5
&#150; Management Expectations of Operations&quot;). Eni plans to
reach said production target by leveraging in particular on the
contribution of recently completed great development projects and
projects in the development phase in Angola, Libya, Nigeria,
Egypt, Iran, Algeria and Kazakhstan. Management will continue to
evaluate opportunities to increase production through the
purchase of corporations or individual assets. Eni intends to pay
special attention to reserve replacement in order to guarantee
the medium to long-term sustainability of its business. Eni
intends to optimize its portfolio of development properties by
focusing on areas where its presence is established, seeking for
new opportunities and divesting marginal assets. Eni intends to
develop its LNG business also through the purchase of interests
in liquefaction plants in order to better exploit its natural gas
reserves in North and West Africa.</p>

<p>In exploration activities Eni intends to renew its portfolio
of properties focusing on such areas where management believes a
high mineral potential exists, assets in areas where its presence
is already established (in particular Egypt, Nigeria, the United
States, Italy and Norway) and to start exploration in newly
acquired areas (in particular Alaska, Libya and India).</p>

<p>Eni plans to improve its performance by searching for
operating solutions with lower operating costs and synergies.<br>
</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, is
entrusted with the task of keeping reserve classification
criteria (&quot;criteria&quot;) constantly updated and of
monitoring their periodic process of estimate. The criteria
follow Regulation S-X rule 4-10 of the Securities and Exchange
Commission (SEC) 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 (D&amp;M), an
independent oil engineers company, which confirmed that they are
compliant with the SEC rules. D&amp;M also stated that the
criteria regulate situations for which the SEC rules are less
precise, providing a reasonable interpretation in line with the
generally accepted practices in international markets. Eni
estimates its proved reserves on the basis of the 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> of its proved reserves
on a rotation basis. In particular in 2005 a total of 1.64 BBOE
of proved reserves, or about 24% of Eni&#146;s total proved
reserves at December 31, 2005, have been evaluated. The results
of this independent evaluation confirmed Eni&#146;s evaluations,
as they did in past years. In the 2003-2005 three year period
independent evaluations concerned 84% 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 oil and natural gas at December
31, 2005 totalled 6,837 mmBOE (oil and condensates 3,773 mmBBL;
natural gas 17,591 BCF) representing a decrease of 381 mmBOE, or
5.3%, from December 31, 2004. The reserve replacement ratio was
40% in 2005; the average reserve replacement ratio for the last
three years was 89%. The average reserve life index is 10.8 years
(12.1 at December 31, 2004). The reserve replacement ratio was
calculated dividing additions to proved reserves for year 2005 by
total production, each as derived from the tables of changes in
proved reserves prepared in accordance with SFAS No. 69 presented
in Note 35 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>Addition to proved reserves booked in 2005 were 253 mmBOE
derived from : (i) extensions and discoveries (156 mmBOE), in
particular in Nigeria, Norway, Kazakhstan and Algeria; (ii)
revisions of previous estimates (down 98 mmBOE) related to lower
entitlement in certain Production Sharing Agreements (PSAs)<a
href="#(3)"><sup>3</sup></a> and buy-back contracts due to higher
oil prices recorded mainly in Kazakhstan, Angola and Libya; (iii)
improved recovery (89 mmBOE), in particular in Algeria, Angola
and Kazakhstan; and (iv) purchase of proved property (106 mmBOE)
in Kazakhstan, Australia, Italy and Angola. The increase offset
in part the decline related to production for the year (634
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 exploration and production of oil
and natural gas and &#150; Uncertainties in estimates of oil and
natural gas reserves.</p>

<p>Proved developed reserves at December 31, 2005 amounted to
4,306 mmBOE (2,350 mmBBL of oil and condensates and 11,229 BCF of
natural gas), representing 63% of total estimated proved reserves
(60% and 58% at December 31, 2004 and 2003, respectively). </p>

<p>Proved reserves of oil and natural gas applicable to long-term
supply agreements with foreign governments in mineral assets
where Eni is operator represented approximately 11% of all proved
reserves at December 31, 2005 (10% at December 31, 2004; 8% at
December 31, 2003). </p>

<p>With effective date April 1, 2006, the Venezuelan State oil
company Petr&#243;leos de Venezuela SA (PDVSA) unilaterally
terminated the service contract governing activities at the
Daci&#243;n oil field where Eni acted as a contractor, holding a 100%
working interest. As a consequence, starting on the same day,
operations at the Daci&#243;n oil field are conducted by PDVSA which
replaced Eni Daci&#243;n BV, Eni&#146;s wholly-owned subsidiary that
had been operating the field until that date.</p>

<p>Eni believes that it is entitled to a market value
compensation for the expropriation of the Daci&#243;n field. On these
basis, Eni is available to reach an agreement with the Venezuelan
authorities. In case an amicable settlement is not possible, Eni
will take any other action in order to protect its interest in
Venezuela. Based on internal and external independent evaluation,
Eni is confident that a fair market compensation will not be
lower than the book value of the Daci&#243;n related assets.
Accordingly, management decided not to impair the book value of
Eni&#146;s Daci&#243;n assets. In 2005 and in the first quarter 2006,
the Daci&#243;n field production rate was about 60 KBBL/d. Management
expects Eni&#146;s proved reserves of hydrocarbons to be reduced
by an amount of approximately 175 mmBBL corresponding to
Eni&#146;s net proved reserves of the Daci&#243;n field as of
December 31, 2005 as a consequence of the loss of Eni&#146;s
title to the field.</p>

<p>The table below sets forth a geographical breakdown of
Eni&#146;s proved reserves and proved developed reserves of
hydrocarbons, on a barrel of oil equivalent basis, for the
periods indicated. </p>

<p><b>Proved reserves</b></p>

<p>Eni&#146;s proved reserves of hydrocarbons by geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,315</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,199</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">996</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">890</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">868</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,122</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,033</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,024</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,117</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,026</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,136</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,287</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,324</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,357</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,279</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">879</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">825</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">912</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">807</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">758</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,477</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,686</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,016</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,047</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,865</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,929</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,030</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,272</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,218</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,796</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">41</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>6,929</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>7,030</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>7,272</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>7,218</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>6,837</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>Eni&#146;s proved reserves of oil by geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(mmBBL)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">309</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">255</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">252</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">225</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">228</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,171</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,072</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,080</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">993</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">961</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">976</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,022</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,038</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,056</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">936</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">552</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">498</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">529</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">450</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">433</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">940</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">936</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,239</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,284</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,190</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,948</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,783</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,138</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,008</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,748</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">25</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,948</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,783</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>4,138</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>4,008</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,773</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>Eni&#146;s proved reserves of natural gas by geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(BCF)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,640</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,295</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,166</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,818</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,676</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,509</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,563</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,467</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,453</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,117</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">925</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,533</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,656</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,729</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,965</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,892</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,899</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,223</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,051</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,864</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,106</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,339</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,496</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,384</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,879</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17,072</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,629</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,008</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18,435</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17,501</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">90</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>17,072</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>18,629</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>18,008</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>18,435</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>17,591</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>Eni&#146;s proved developed reserves of hydrocarbons by
geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">825</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">774</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">702</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">671</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">620</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">875</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">797</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">806</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">961</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,230</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">640</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">703</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">710</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">749</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">793</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">773</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">724</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">822</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">707</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">611</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">654</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">705</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,190</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,212</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,021</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,767</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,703</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,230</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,300</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,275</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">31</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,767</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,703</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>4,230</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>4,300</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>4,306</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>Eni&#146;s proved developed reserves of oil by geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(mmBBL)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">171</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">168</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">173</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">174</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">149</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">685</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">610</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">640</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">655</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">697</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">539</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">554</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">560</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">588</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">568</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">476</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">426</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">464</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">386</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">353</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">443</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">483</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">610</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">668</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">564</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,314</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,241</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,447</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,471</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,331</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">19</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>2,314</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>2,241</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>2,447</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>2,471</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>2,350</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>Eni&#146;s proved developed reserves of natural gas by
geographic area</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(BCF)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,665</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,397</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,966</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,850</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,704</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,103</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,084</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">962</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,760</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,060</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">584</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">863</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">866</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">924</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,289</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,721</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,727</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,075</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,845</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,484</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,221</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,283</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,355</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,122</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,622</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total consolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,294</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,354</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,224</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,501</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11,159</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Unconsolidated
        entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">70</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>8,294</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>8,354</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>10,224</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>10,501</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>11,229</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<p>As of December 31, 2005, Eni&#146;s portfolio of mineral
rights consisted of 1,041<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 266,002<a
href="#(5)"><sup>5</sup></a> square kilometers (234,180 at
December 31, 2004). Of these, 55,098 square kilometers concerned
production and development (41,997 at December 31, 2004). Outside
Italy net acreage increased by 41,403 square kilometers due to
the acquisition of assets after international bid procedures in
Libya, Egypt, India, Pakistan, Angola, Algeria, the United States
and Ireland and purchases of mineral assets in Nigeria, Alaska
and Australia. These increases were offset in part by releases in
Italy, Brazil, Congo, Morocco and Tunisia and divestments of
assets in the British section of the North Sea. In Italy net
acreage declined by 9,582 square kilometers due to releases.</p>

<p>A total of 52 new exploratory wells were drilled (21.85 of
which represented Eni&#146;s share on the basis of its working
interest in relevant properties), as compared to 66 exploratory
wells completed in 2004 (29.5 of which represented Eni&#146;s
share). Overall success rate was 39.3% in 2005, as compared to
52.1% in 2004; the success rate of Eni&#146;s share of
exploratory wells was 47.4% in 2005, as compared to 57.3% in
2004.<br>
</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 2005 oil and natural gas production available for sale
averaged 1,693 KBOE/d (oil and condensates 1,111 KBBL/d; natural
gas 3,344 mmCF/d) increasing by 107 KBOE/d compared to 2004, up
6.7%, due to: (i) production increases registered mainly in
Libya, Angola, Iran, Algeria, Egypt and Kazakhstan; and (ii) the
start-up of fields in Angola and Libya. These increases were
partly offset by: (i) an estimated 32 KBOE adverse entitlement
impact in PSAs and buy-back contracts related to higher
international oil prices; (ii) declines in mature fields mainly
in Italy and the United Kingdom; and (iii) the effect of the
divestment of proved property carried out in 2004 (16 KBOE) and
of hurricanes in the Gulf of Mexico (10 KBOE). The share of
production outside Italy was 85% (82.6% in 2004). </p>

<p>Production of oil and condensates (1,111 KBBL/d) increased by
77 KBBL/d compared to 2004, up 7.4%, due to increases registered
in: (i) Angola, due to full production of the Hungo and Chocalho
fields within phase A of the development of the Kizomba area in
Block 15 and the start-up of the Kissanje and Dikanza fields
within phase B of the same project in Block 15 (Eni&#146;s
interest 20%) and the start-up of the Sanha-Bomboco fields in
area B of Block 0 (Eni&#146;s interest 9.8%); (ii) Libya, due to
full production at the Wafa field and the start-up of the Bahr
Essalam field (Eni&#146;s interest 50%); (iii) Iran, due to full
production at the South Pars field Phases 4-5 (Eni operator with
a 60% interest) and production increases at the Dorood
(Eni&#146;s interest 45%) and Darquain fields (Eni operator with
a 60% interest); (iv) Algeria, due to full production at the Rod
and satellite fields (Eni operator with a 63.96% interest);
(v)&nbsp;Kazakhstan, in the Karachaganak field (Eni co-operator
with a 32.5% interest) due to increased exports from Novorossiysk
terminal on the Russian coast of the Black Sea; and (vi) Italy,
due to increased production in Val d&#146;Agri resulting from
full production of the fourth treatment train of the oil center.
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 carried out in 2004. </p>

<p>Production of natural gas available for sale (3,344 mmCF/d)
increased by 173 mmCF/d compared to 2004, up 5.5%, due to
increases registered in: (i) Libya, due to full production at the
Wafa field and the start-up of the Bahr Essalam field (Eni&#146;s
interest 50%); (ii) Egypt, due to the start-up of the Barboni
field and the Temsah 4 platform in the offshore of the Nile
Delta; and (iii) Kazakhstan and Pakistan. These increases were
partly offset by declines of mature fields, in particular in
Italy, the effect of the divestment of assets effected in 2004
and of the hurricanes in the Gulf of Mexico. </p>

<p>Hydrocarbon production sold totalled 614.9 mmBOE. About 68% of
oil and condensate production sold (402.6 mmBBL) was delivered to
Eni&#146;s Refining &amp; Marketing segment (70% in 2004). About
44% of natural gas production sold (1,219 BCF) was delivered to
Eni&#146;s Gas &amp; Power segment (40% in 2004). </p>

<p>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 valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Production of oil and condensates</b> <sup>(1)
        (2)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">69</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">86</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">84</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">80</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">86</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">228</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">252</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">250</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">261</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">308</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">219</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">222</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">236</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">285</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">310</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">204</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">213</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">235</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">203</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">179</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">137</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">148</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">176</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">205</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">228</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">857</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">921</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">981</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,034</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,111</font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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 valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Natural gas production available for sale</b>
        <sup>(1)</sup> <sup>(2) (3)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,313 </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,260</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,181</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,067</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">972</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">497</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">560</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">559</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">619</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">900</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">82</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">87</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">128</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">143</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">151</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">450</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">516</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">596</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">560</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">563</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">485</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">592</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">710</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">782</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">758</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,827</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,015</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,174</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,171</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,344</font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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 35 to the
        Consolidated Financial Statements - Supplemental oil and
        gas information (unaudited), because yearly production
        presented in such reserve tables is based on estimates
        made 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 proved reserves for each period.</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">Data includes
        Eni&#146; share of production of affiliates and joint
        ventures accounted for under the equity or cost method of
        accounting.</font></td>
    </tr>
    <tr>
        <td><font size="1">(3)</font></td>
        <td>&nbsp;</td>
        <td><font size="1">Natural gas production volumes
        consumed in operations are excluded. The effect was 94,
        132, 151, 220 and 250 mmCF/d in 2001, 2002, 2003, 2004
        and 2005, respectively.</font></td>
    </tr>
</table>

<p>Volumes of oil and natural gas purchased under long term
supply contracts with foreign governments or similar authorities
in properties where Eni acts as producer totalled 20.5 KBOE/d and
2.9 KBOE/d in 2005 and 2004, respectively (2003 amounts were
immaterial).</p>

<p>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, 2005. </p>

<p><b>Principal oil and natural gas interests at December 31,
2005</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Commencement of operations</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Number of interests</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Gross exploration<br>
        and development acreage </b><sup>(1)</sup></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="center"><font
        size="1"><b>Net exploration<br>
        and development acreage </b><sup>(1)</sup></font></p>
        </td>
        <td valign="top" 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="top" 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="top" 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="top" 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>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"
        height="16"><font size="1"><b>Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="16"><p align="center"><font size="1">1926</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="1"><b>180</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="1"><b>31,048</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="1"><b>24,053</b></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="1"><b>12,700</b></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="1">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="1"><b>83</b></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="1"><b>79</b></font></p>
        </td>
    </tr>
    <tr>
        <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="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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="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="1"><b>North Africa</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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" 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="10%" 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="1">Algeria</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1981</font></p>
        </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="11%"><p align="right"><font
        size="1">14,352</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">3,792</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">860</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">15</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Egypt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1954</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">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">34,918</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">22,644</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">4,180</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">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">28</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Libya</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1959</font></p>
        </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%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">44,955</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">37,703</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">15,466</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">7</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Tunisia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1961</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">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,464</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">2,317</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">1,601</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">9</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>
    </tr>
    <tr>
        <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="8%"><p align="right"><font
        size="1"><b>119</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>100,689</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>66,456</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>22,107</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="1"><b>78</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>56</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1"><b>West Africa</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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" 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="10%" 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="1">Angola</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1980</font></p>
        </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%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">15,234</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">2,310</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">715</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">32</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Congo</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1968</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">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9,855</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">4,224</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">880</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">16</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">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Nigeria</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1962</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">46,075</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">8,922</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6,539</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">119</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">69</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="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="1"><b>122</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>71,164</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>15,456</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>8,134</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="1"><b>171</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>109</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1"><b>North
        Sea</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="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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="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="1">Norway</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1965</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">51</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">26,601</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">8,814</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">128</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">14</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">13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">The United
        Kingdom</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1964</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="11%"><p align="right"><font
        size="1">6,504</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">1,506</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">652</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">15</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="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="1"><b>135</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>33,105</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>10,320</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>780</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="1"><b>43</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>28</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1"><b>Rest of
        World</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="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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="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="1">Australia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">2001</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">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31,948</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">22,349</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">3,299</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">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="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Brazil</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1999</font></p>
        </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="11%"><p align="right"><font
        size="1">2,203</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">2,057</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%"><p align="center"><font
        size="1">Offshore</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="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">China</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1983</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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" 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="10%" 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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">8</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</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Croatia</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1996</font></p>
        </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="11%"><p align="right"><font
        size="1">6,056</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">3,029</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">988</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Offshore</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Ecuador</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1988</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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,000</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">2,000</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">2,000</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">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">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">India</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">2005</font></p>
        </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="11%"><p align="right"><font
        size="1">14,445</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">5,698</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%"><p align="center"><font
        size="1">Onshore/Offshore</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="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Indonesia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">2001</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">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31,419</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">15,859</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">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="1">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="1">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="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Iran</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1957</font></p>
        </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="11%"><p align="right"><font
        size="1">1,456</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">820</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">820</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">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="1">Kazakhstan</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1995</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="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,934</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">959</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">488</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">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">5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Pakistan</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">2000</font></p>
        </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="11%"><p align="right"><font
        size="1">21,876</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">11,692</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">615</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Saudi Arabia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">2004</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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">51,687</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">25,844</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="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">Onshore</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="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Trinidad
        &amp; Tobago</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1970</font></p>
        </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="11%"><p align="right"><font
        size="1">382</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Offshore</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="8%"><p align="right"><font
        size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">The United States</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">1968</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">389</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7,890</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">3,569</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">389</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">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="1">17</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">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Venezuela</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1">1998</font></p>
        </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="11%"><p align="right"><font
        size="1">1,701</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">867</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">511</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Onshore/Offshore</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="8%"><p align="right"><font
        size="1">2</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="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="1"><b>458</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>178,863</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>94,990</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>10,263</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="1"><b>56</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>38</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Other</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="8%"><p align="right"><font
        size="1"><b>9</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>6,276</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>1,279</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,114</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Offshore</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="8%"><p align="right"><font
        size="1"><b>1</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1">Other countries with only exploration activity</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="8%" 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="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>89,056</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>53,448</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="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="1">Onshore/Offshore</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="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="1">Outside
        Italy</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="8%"><p align="right"><font
        size="1">861</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">479,153</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">241,949</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">42,398</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="1">348</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">232</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="1"><b>Total</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,041</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>510,201</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>266,002</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>55,098</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="1"><b>431</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>311</b></font></p>
        </td>
    </tr>
</table>

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

<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">Square
        kilometers.</font></td>
    </tr>
</table>

<p>&nbsp;</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 2005, Eni&#146;s hydrocarbon production in Italy totalled
256 KBOE/d and represented 15% 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 972 mmCF/d and represented
approximately 67% 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 50% of Eni&#146;s natural gas
production in Italy in 2005) and in the Ionian Sea (Luna, which
accounted for 9.2%). </p>

<p>Production of oil in Italy averaged 86 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 82%
of Eni&#146;s total oil production in Italy in 2005. 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 Mezzocolle 1 well (Eni&#146;s interest 100%) containing
natural gas in the Imola permit in the central Apennines, with
the Longanesi 1 well containing natural gas in the Po Plain
(Eni&#146;s interest 100%) and with Argo-1 well (Eni&#146;s
interest 60%) testing an offshore gas accumulation in the Sicily
Channel. </p>

<p>In the Val d&#146;Agri the expected production peak of 73
KBOE/d net to Eni was reached as planned. Oil production derives
from the first 19 wells drilled of the 38 foreseen by the
development plan.</p>

<p>Production maintenance actions were performed on the offshore
Annabella, Armida, Barbara, Garibaldi gas fields and the Rospo
oilfield through the drilling of infilling wells and sidetrack
activities, increasing production by about 75 mmCF/d. </p>

<p>During 2005 development activities concerned: (i) continuation
of the development plan of the onshore Candela and Miglianico
fields and the completion of the development of the Naide field;
(ii) continuation of drilling and connection of development wells
in the Val d&#146;Agri; (iii) the optimization of producing
fields by means of sidetracking and infilling (the Annabella,
Armida, Barbara, Garibaldi gas fields and the Rospo oilfield);
(iv)&nbsp;construction of an additional sealine for the optimal
management of the fields connected to the Fano terminal; and (v)
the beginning of the development phase of the Annamaria field.</p>

<p>As part of the development of onshore gas fields in Sicily the
following projects are in an advanced phase: (i)&nbsp;in the
Pizzo Tamburino field, the first well is scheduled for the second
half of 2006 with expected production of approximately 6 mmCF/d;
in 2007 according to the actual production of the first well a
second one is expected to be drilled; (ii) in the Fiumetto field,
an infilling well is expected to start production in the first
half of 2007 with an expected peak flow of approximately 7
mmCF/d; and (iii) in the Samperi field, start-up is expected in
the second half of 2006 peaking at approximately 7 mmCF/d.</p>

<p>In December 2005 Eni acquired for euro 90 million (including
net financial debt transferred of euro 17 million) a 90% interest
in Sarcis SpA holding onshore permits/concessions in Sicily.</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 2005, North Africa
accounted for 27% of Eni&#146;s total worldwide production of
hydrocarbons. </p>

<p><i>Algeria</i> Eni has been present in Algeria since 1981. In
2005, Eni&#146;s oil production averaged 86 KBBL/d. The principal
oil producing fields operated by Eni are located in the Bir Rebaa
area in the South-Eastern desert and include Blocks 401a, 402a,
403, 403a and 403d (Eni&#146;s share between 50%-100%), which
accounted for approximately 52% of Eni&#146;s production in 2005
in Algeria. Other interests held by Eni are HBN, HBNS, HBNSE and
satellites (Eni&#146;s interest 12.25%) and Ourhoud (Eni&#146;s
interest 4.59%), which in 2005 accounted for approximately 48% of
Eni&#146;s production in Algeria.</p>

<p>Exploration activities yielded positive results in permits P
404 in area C (Eni&#146;s interest 25%), near the HBNE field,
with the SFSW-3 appraisal well on the Sif Fatima discovery and P
403 c/e (Eni&#146;s interest 33.33%) with the ZNNW-1 appraisal
well. In both permits the presence of hydrocarbons was confirmed
at a depth of about 3,000 meters.</p>

<p>In Block P 403a/d (Eni&#146;s interest 50%) the NFW ROM-6
discovery well and the ROM North-1 appraisal well were drilled at
a depth of about 3,400 meters and confirmed the extension of the
new oil levels in the ROM field. The ROM integrated development
project entails production from these new levels also through the
reinjection of gas produced in the nearby BRN field, reducing gas
flaring by nearly 90%. Management expects production of the ROM
field to peak at 16 KBOE/d net to Eni in 2009.</p>

<p>The EKT, EMK, EMN and EME fields are in the development phase
in block 208 (Eni&#146;s interest 12.25%). The development plan
provides for the drilling of 142 wells and the construction of a
central facility for the production of stabilized oil,
condensates and LNG. Management expects production of this field
to commence in 2008, peaking at 13 KBOE/d net to Eni in 2010.</p>

<p><i>Egypt</i> Eni has been present in Egypt since 1954. In
2005, Eni&#146;s share of production in this country amounting to
207 KBOE/d accounted for 12% of Eni&#146;s total annual
hydrocarbon production. </p>

<p>In 2005, oil and condensate production averaged 90 KBBL/d net
to Eni and came mainly from the Eni operated Belayim and Ashrafi
fields in the Gulf of Suez and Melehia in the Western Desert,
which covered 74% of Eni&#146;s crude oil production in Egypt. </p>

<p>In 2005, natural gas production available for sale averaged
671 mmCF/d net to Eni. The main natural gas producing interests
operated by Eni are concentrated in the Nile Delta: onshore the
Abu Madi and el Qar&#146;a 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 nearly all of Eni&#146;s natural gas production in Egypt.
</p>

<p>Exploration yielded positive results in the following
concessions: (i) Ashrafi (Eni&#146;s interest 50%) in the Gulf of
Suez with the drilling of the NFW Ashrafi 1X well that found
hydrocarbons at a depth of about 1,700 meters; (ii)&nbsp;Belayim
Land (Eni&#146;s interest 50%) with the drilling of NFW BLSW-1
well that found gas at a depth of over 3,000 meters; (iii)
Belayim Marine (Eni&#146;s interest 50%) in the Gulf of Suez with
the drilling of the BMNW-4 outpost well which allowed to report
mineralized levels at a depth of about 3,000 meters. This well
was linked to the existing production facilities; and (iv) North
Port Said (Eni operator with a 50% interest) with the drilling of
the PFM-D-1 well which found gas and condensates at a depth of
about 5,000 meters.</p>

<p>Development activities are underway in concessions in the
offshore of the Nile Delta: (i) North Port Said (Eni&#146;s
interest 50%) where the Barboni gas platform started production
in May 2005 at an initial level of about 35 mmCF/d while work
continued for the expansion of the el Gamil terminal where in
2005 natural gas production net to Eni increased from 388 to 459
mmCF/d; and (ii) el Temsah (Eni operator with a 25% interest)
where in August 2005 gas and liquid production started at the
Temsah 4 platform. In the second quarter of 2006 production of
gas and condensates is expected to start from platform Temsah NW.
Peak production at 41 KBOE/d net to Eni is expected in 2008.</p>

<p>In January 2005 the LNG production plant at Damietta was
started-up. The plant (Eni&#146;s interest 40%) has a treatment
capacity of 247 BCF/y. Eni plans to supply 106 BCF/y of its
natural gas production volumes in Egypt 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 plans
to 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 (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, 280,000 tonnes of LPG and 1.2 mmBBL of condensates. </p>

<p>In the medium term management plans to increase Eni&#146;s
hydrocarbon production in Egypt leveraging on the development of
natural gas reserves in existing areas. This increase is expected
to be offset in part by production decline of certain mature oil
fields. </p>

<p><i>Libya</i> Eni started operations in Libya in 1959. In 2005,
Eni&#146; s share of production in this country amounting to 158
KBOE/d accounted for approximately 9% of Eni&#146;s total annual
hydrocarbon production. </p>

<p>In 2005 Eni&#146;s hydrocarbon production averaged 158 KBOE/d,
of which 76% was oil. The main oil, condensates and gas fields
operated by Eni are Wafa onshore in permit NC-169 A and Bahr
Essalam located in the NC-41 permit in the Mediterranean offshore
north of Tripoli started up in September 2004 and August 2005,
respectively, as part of the Western Libyan Gas Project
(Eni&#146;s interest 50%). Production from the two fields is
treated at the Mellitah plant under completion on the Libyan
coast. Natural gas is carried to Italy through the underwater
Greenstream pipeline. In 2005 the two fields produced 74 KBOE/d.
Total peak production at 128 KBOE/d net to Eni is expected in
2006. When fully operational in 2006 the gasline is expected to
transport and export to Italy a total volume of 283 BCF/y (141
BCF/y net to Eni). This volume will be entirely sold to third
parties on the Italian natural gas market under long term
contracts. In addition 71 BCF/y are expected to be sold on the
Libyan market. In 2005, volumes transported to Italy through this
gasline amounted to approximately to 163 BCF for the year.</p>

<p>Other significant fields are: (i) 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 43% of Eni&#146;s production in Libya
in 2005; and (ii) Elephant in the NC-174 onshore permit in the
south-western desert (Eni&#146;s interest 23.33%) which in 2005
produced 9 KBBL/d net to Eni. </p>

<p>In October 2005 following an international bid procedure Eni
obtained an exploration license as operator of four onshore
blocks with a total acreage of 18,220 square kilometers, located
in the Murzuk basin (161/1, 161/2&amp;4, 176/3) and in the Kufra
area (186/1, 2, 3, 4).</p>

<p>Exploration yielded positive results in offshore block NC-41
(Eni operator with a 50% interest) with the drilling of well NFW
T1-NC41 which found oil and gas at a depth of 2,770 meters and
yielded 4.6 KBBL/d of crude oil and 13 mmCF/d of gas in test
production.</p>

<p>In the NC-174 permit (Eni&#146;s interest 23.33%) about 800
kilometers south of Tripoli the development of the Elephant oil
field continued. In October 2005 the new 725-kilometer long
pipeline linking it to the Mellitah plant started operations. The
upgrading of the Mellitah plant will be completed in the first
half of 2006. Management expects production of this field to peak
at 150 KBBL/d (35 KBBL/d net to Eni) in the second half of 2006.</p>

<p>In the medium term, management expects to increase
significantly Eni&#146;s production in Libya from the 158 KBOE/d
level of 2005 benefiting from the expected achievement of full
production at the Western Libya Gas Project and at Elephant
fields.</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 2005, 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
2005 Eni&#146;s oil production averaged 122 KBBL/d and accounted
for 11% of Eni&#146;s total annual oil production. </p>

<p>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%). </p>

<p>The main oil fields in Block 0 are Takula, Nemba and Malongo.
In the first half of 2005 production started at the North
Sanha/Bomboco oil, condensate and LPG offshore fields. LPG is
produced through an FPSO (Floating Production Storage Offloading)
unit, the largest in its class in the world. At Sanha a complex
for the reinjection of gas into the fields has been built aiming
at reducing gas flaring by 50%. In 2005 production from this
block (38 KBBL/d) accounted for approximately 31% of Eni&#146;s
production in Angola. Peak production of oil, condensate and LPG
is expected at 100 KBBL/d (10 KBBL/d net to Eni) in 2007. The
main field in the deep waters of Block 14 is Kuito which in 2005
produced approximately 58 KBBL/d (10 KBBL/d net to Eni).</p>

<p>In Block 15 the Hungo and Chocalho fields started-up in August
2004, and the Kissanje and Dikanza fields, started-up in July
2005 within phase A and B of the development of the Kizomba area,
are now in production. Both fields are developed by means of an
FPSO unit. Peak production of phase B at 250 KBBL/d (47 KBBL/d
net to Eni) was reached in late 2005. Peak production of phase A
at 250 KBBL/d (43 KBBL/d net to Eni) is expected in 2006 and will
be kept at the same level by means of additional production from
marginal fields. Another relevant field in Block 15 is Xikomba.
In 2005 production from Block 15 (70 KBBL/d) accounted for
approximately 56% of Eni&#146;s production in Angola. Development
is underway at: (i) Mondo field with expected start up in 2007
and expected capital expenditure net to Eni amounting to
approximately $360 million; and (ii) at Saxi-Batuque fields with
expected start up in 2008 and expected capital expenditure net to
Eni amounting to approximately $380 million.</p>

<p>The project is underway for the development of the Benguela,
Belize, Lobito and Tomboco oilfields at a depth between 300 and
500 meters in Block 14 (Eni&#146;s interest 20%). The project
provides for the drilling of 50 wells and the installation of a
compliant tower with production facilities for Benguela/Belize.
The first oil was produced in January 2006. Lobito and Tomboco
are planned to be developed by means of underwater completion and
to be connected to the compliant tower of Benguela/Belize with
start-up scheduled in the second half of 2006. Management expects
production from these four fields to peak at 188 KBBL/d (32
KBBL/d net to Eni) in 2008. Total capital expenditure net to Eni
is expected to amount to approximately $460 million. </p>

<p>Offshore exploration activities were successful in the
following areas: (i) Block 0, former Cabinda (Eni&#146;s interest
9.8%) with the NFW 70-5X well that found hydrocarbons at a depth
of 2,335 meters and yielded 2 KBBL/d of crude oil and natural gas
in test production; (ii) Block 14K/A-IMI (Eni&#146;s share 10%)
with the drilling of the Lianzi-2ST and Lianzi-2OH appraisal
wells on the Lianzi discovery which showed the presence of
natural gas and crude oil layers at a depth of more than 3,000
meters; and (iii) Block 15 (Eni&#146;s interest 20%) with the
Batuque-3 appraisal well on the Batuque discovery which confirmed
the presence of hydrocarbons at a depth of about 2,000 meters.</p>

<p>In May 2006, Eni acquired the operatorship (Eni&#146;s
interest 35%) of a new exploration area in Block 15. </p>

<p>In the medium term, management expects to increase Eni&#146;s
production to approximately 200 KBBL/d benefiting from the
expected achievement of full production of fields started-up in
2005 and the contribution of new development projects.</p>

<p><i>Congo</i> Eni has been present in Congo since 1968 and its
production in 2005 was 67 KBOE/d. </p>

<p>Eni is the second largest international oil producer, with oil
fields operated by Eni accounting for 28% of Congo&#146;s total
oil production in 2005 (65 KBBL/d net to Eni). Eni&#146;s
principal oil producing interests operated in Congo are located
in the offshore facing Pointe Noire: 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%) operated by Eni accounted for approximately 59%
of Eni&#146;s production in Congo in 2005. Eni holds a 35%
interest in the Pointe Noire Grand Fond and Pex permits.</p>

<p><i>Nigeria</i> Eni has been present in Nigeria since 1962. In
2005, Eni&#146;s hydrocarbon production averaged 149 KBOE/d and
accounted for 9% of Eni&#146;s hydrocarbon production. </p>

<p>Eni&#146;s principal producing fields in Nigeria are located
in: (i) four onshore blocks (OML 60, 61, 62 and 63) in the Niger
Delta (Eni&#146;s interest 20%), which in 2005 accounted for 35%
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 14 KBBL/d net to Eni in 2005. The
development of other levels of the Abo field are expected to
reach a production peak of 38 KBBL/d (15 KBBL/d net to Eni) in
2007; and (iii) the offshore OML 119 block, operated through a
service contract, where the Okono and Okpoho oil fields are
located, which produced 55 KBBL/d (19 KBBL/d net to Eni) in 2005.</p>

<p>Eni also holds a 5% interest in the 31 onshore blocks and a
12.86% interest in the 5 offshore blocks of NASE, the largest oil
joint venture in the country. In 2005 production of this joint
venture net to Eni accounted for about 34% of Eni&#146;s
production in Nigeria.</p>

<p>In November 2005 the Bonga oil field (Eni&#146;s interest
12.5%), situated in the OML 118 permit offshore Nigeria in waters
of a depth between 950 and 1,150 meters, was started up.
Development is achieved by means of an FPSO vessel connected to
17 producing wells (9 already drilled). Production is expected to
peak at 200 KBBL/d (23 KBBL/d net to Eni) in 2006.</p>

<p>In September 2005 Eni acquired as operator the OML 120 and OML
121 development licenses from Nigerian companies. The
concessions, where the Oyo field was discovered, are located
approximately 70 kilometers offshore the western coast of the
Niger Delta in Nigeria. Two exploration wells are going to be
drilled in 2006.</p>

<p>Exploration yielded positive results in the offshore OML 125
block (Eni operator with a 50.2% interest) with the drilling of
the Abo 8 appraisal well that found oil layers at a depth of
2,142 meters and in the offshore OPL 219 block (Eni&#146;s
interest 12.5%) with the drilling of the Bolia 3X appraisal well
that found oil levels at a depth of over 3,000 meters.</p>

<p>Eni holds a 10.4% interest in Nigeria LNG Ltd which manages
the liquefaction plant located on Bonny Island with a treatment
capacity of approximately 812 BCF/y of natural gas corresponding
to a production of 17 million tonnes/y of LNG, along with over
2.2 million tonnes/y of LPG and 1.1 million tonnes/y of
condensates on five trains. The fourth train was started up in
late 2005 and the fifth in January 2006. The fourth train and the
fifth train are expected to reach full production in 2007.
Nigeria LNG&#146;s partners have planned a further capacity
expansion to 1,448 BCF/y, corresponding to a production of 30
million tonnes of LNG by means of the installation of two more
trains (one already under construction) with start-up expected
between 2007 and 2011. Eni expects its share of capital
expenditure for the planned capacity expansion to amount to $1.2
billion; this expenditure is expected to be completely financed
by cash generated from the plant operations.</p>

<p>Natural gas supplies to the plant (first six trains) will be
provided under a gas supply agreement with a 20 year term from
production of the NASE joint venture (Eni&#146;s interest 5%) and
of Blocks OML 60 and 61 (Eni operator with a 20% interest). When
fully operational in 2008 they will supply approximately 3.5
BCF/d (0.27 BCF/d net to Eni, corresponding to approximately
47,000 BBL/d). Capital expenditure net to Eni for the development
activity is expected to amount to approximately $560 million.</p>

<p>In April 2005, the Okpai power station (independent power
plant, Eni&#146;s interest 20%) started operations, with a
generation capacity of 480 megawatt on two gas and one steam
turbines. The power station is fed with gas from the nearby Kwale
fields in permit OML 60 (Eni operator with a 20% interest), which
will supply 71 mmCF/d of natural gas when the power station is
fully operational. The project is part of Eni&#146;s and the
Nigerian government&#146;s plan to reduce CO<sub>2</sub>
emissions in the atmosphere.</p>

<p>In the medium term, management expects to increase
significantly Eni&#146;s production in Nigeria to approximately
200 KBBL/d leveraging on the development of natural gas reserves,
in particular in order to ensure supplies to the Bonny plant, and
the contribution of fields started-up recently, as in the case of
Bonga, and of new development projects.</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 2005, the North Sea accounted
for 16% 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 136 KBOE/d.
Eni&#146;s principal producing interests are the Ekofisk field
(Eni&#146;s interest 12.39%) in the North Sea, and the Aasgard,
Mikkel (both with a 14.9% interest) and Norne (Eni&#146;s
interest 6.9%) fields in the Norwegian Sea which together
accounted for 90% of Eni&#146;s production in Norway in 2005. </p>

<p>In November 2005 production started at the Kristin oil and gas
field (Eni&#146;s interest 8.25%) located in the PL134 permit in
the Haltenbanken area about 200 kilometers off the coast in the
Norwegian Sea. Oil production is treated on a semi-submersible
platform with a capacity of 125 KBBL/d. Production is expected to
peak at 218 KBOE/d (18 KBOE/d net to Eni) in 2007. In the same
permit the Tofte formation discovered with the first producing
well on Kristin will be developed. The synergies with the Kristin
production facilities will allow a viable development of the
nearby Tyrihans field (Eni&#146;s interest 7.9%), expected to
start-up in 2009, in coincidence with the expected production
decline of Kristin.</p>

<p>In November 2005 the Svale and St&#230;r oil fields in the PL128
permit (Eni&#146;s interest 11.5%) were started up, exploiting
synergies with the nearby Norne production facilities. Production
is expected to peak at 56 KBBL/d (6 KBBL/d net to Eni) in 2006.</p>

<p>The exploration activities yielded positive results in the
Barents Sea with the second appraisal Goliath South well on the
Goliath oil and gas discovery. Management expects the Goliath
South well may results in the discovery of additional hydrocarbon
reserves either from the expected reservoir or from deeper
layers. Goliath is located in Block PL 229 (Eni&#146;s interest
65%). </p>

<p><i>The United Kingdom</i> Eni has been present in the United
Kingdom since 1964. In 2005 Eni&#146;s net production of
hydrocarbons averaged 141 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 2005 these fields accounted for 77% of Eni&#146;s
production in the United Kingdom. </p>

<p>Exploration yielded positive results in the P/233 permit in
blocks 15/25a (Eni&#146;s interest 12%) in the central section of
the North Sea with the NWF 15/25&#176;-DD well drilled at a depth of
over 2,000 meters and flowed about 4 KBBL/d of high quality oil
and natural gas in test production.</p>

<p>Development activities concerned: (i) the start-up of the
Farragon field (Eni&#146;s interest 30%); and (ii) linkage of the
gas and condensate Glenelg (Eni&#146;s interest 8%) and West
Franklin (Eni&#146;s interest 21.87%) fields to the Elgin
Franklin production platform.</p>

<p>In July 2005 Eni divested some exploration assets located in
the central section of the North Sea as part of its strategy of
asset portfolio rationalization.</p>

<p>In November 2005 the British government announced a draft law
to increase corporate income taxes by levying a supplementary
charge increase of 10 percentage points (from 10 to 20%). In the
event this draft law is enacted, management estimates an adverse
1.2 percentage points impact on Eni Group&#146;s tax rate in 2006
as compared to 2005. Approximately half of the expected increase
will relate to a provision for deferred taxation. Given the
expected production decline of the area for the decline of mature
fields, the adverse impact of higher rates of taxes in the United
Kingdom will diminish with time.</p>

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

<p>In 2005, Eni&#146;s operations in the rest of the world
accounted for 21% of its total worldwide production of
hydrocarbons.</p>

<p>In <i>Brazil</i> in January 2006 following an international
bid procedure held in October 2005 Eni acquired the operatorship
of a six year exploration license in Block BM Cal-14, covering an
area of about 745 square kilometers in the deep waters of the
Camamu-Almada basin, about 1,300 kilometers north of Rio de
Janeiro. In March 2005 the exploration license of Block BM-C-3
(Eni&#146;s interest 40%) was converted into an evaluation area.
The test phase of the Peroba discovery well containing oil is
scheduled within 2006. Exploration yielded positive results in
Block BM-S-4 (Eni&#146;s interest 100%) with the drilling of the
NFW Belmonte-1A well which found natural gas at a depth of over
5,000 meters. The relevant authorities allowed a third
exploration period for this block which will last two years and
provides for the drilling of one well.</p>

<p>In <i>China</i> offshore exploration activity yielded positive
results in Block 16/19 (Eni&#146;s interest 33%) in the South
China Sea about 180 kilometers south east of Hong Kong with the
drilling of the HZ25-4-1 well (Eni&#146;s interest 100%), which
found hydrocarbons at a depth between 2,200 and 3,800 meters and
flowed about 5 KBBL/d of oil in test production. The HZ25-4 field
will be started up by means of the production facilities existing
in the area. In Block 16/19 the HZ25-3-2 appraisal well confirmed
the extension of the reserves of the HZ25-3 oil field.</p>

<p>In <i>India</i> in July 2005, Eni was awarded the right to
conduct exploration activities as operator in Blocks 8 and D-6,
following an international bid tender. Block 8 (Eni&#146;s
interest 34%) is located onshore in Rajasthan in the northwest of
India, and extends for 1,335 square kilometers. Block D-6
(Eni&#146;s interest 40%) is located deep water in the Indian
Ocean, some 130 kilometers east of the Andaman Islands, and
covers an area of 13,110 square kilometers. This contract marks
the beginning of Eni&#146;s upstream activities in India. In
September 2005 Eni and the Indian Oil &amp; Natural Gas
Corporation signed a memorandum of understanding establishing
mutual cooperation between the companies aimed at finding new
exploration and production opportunities. In particular, the
companies will exchange information on a range of deep offshore
exploration projects in India and in other countries, with an
option to exchange equity interests in selected upstream and
midstream projects.</p>

<p>In <i>Mozambique</i> in March 2006, following an international
bid tender, Eni obtained the exploration license for Area 4,
located in the deep offshore of the Rovuma Basin 2,000 kilometers
north of Maputo. The block covers an area of 17,646 square
kilometers in an unexplored geological basin with great mineral
potential according to surveys performed.</p>

<p>In <i>Turkey</i> in September 2005 an agreement has been
reached with the Turkish Group Calik concerning feasibility study
for the realization of a new oil pipeline from the Black Sea
Turkish coast east of Samsun (Unye) to Ceyhan, on the Turkish
Mediterranean coast. The new oil transportation infrastructure
will include: (i) a new loading terminal in Samsun; (ii) a
550-kilometer long pipeline with design capacity of 1.5 million
barrels of oil per day; and (iii) oil storage facilities to be
built in the existing terminal in Ceyhan. The construction of a
pipeline represents a faster, environmentally safer and more
economic alternative to the transportation of oil by ship through
the Turkish Straits of the Bosphorus and Dardanelles.</p>

<p><i>Australia</i> Eni has been present in Australia since 2000.
In 2005 Eni&#146;s hydrocarbon production averaged 21 KBOE/d
mainly of oil.</p>

<p>Eni is operator with a 65% interest of the offshore Woollybutt
oil field, which in 2005 accounted for 51% of Eni&#146;s
production in Australia.</p>

<p>Eni holds a 12.04% interest in the liquids and gas Bayu Undan
field where liquid production was started-up in 2004. Production
of natural gas currently under development will be treated at the
Darwin liquefaction plant which has a capacity of 3.5 million
tonnes/y. In January 2006 the first shipment of LNG was made to
the Japanese market. A production peak of 160 KBOE/d from this
field (18 KBOE/d net to Eni) is expected in 2008.</p>

<p>Offshore exploration was successful in: (i) Block AC/P-21
(Eni&#146;s interest 40%) with the NFW Vesta-1 well that located
oil and gas at a depth of over 3,300 meters; (ii) Block WA-25-L
(Eni&#146;s interest 65%) with the Woollybutt-4 appraisal well
which confirmed the presence of oil in the western extension of
Wollybutt-3 at a depth of over 2,000 meters; and (iii) Block
WA-208 P (Eni&#146;s interest 18.66%) with the NFW Hurricane-1
well that identified natural gas at a depth of over 3,000 meters.</p>

<p>In December 2005 Eni purchased further interests and reached
100% in permits WA 279-P and WA 313-P in the Bonaparte offshore
basin off the northern coast of Australia where the Blacktip and
Penguin fields are located. Total capital expenditure net to Eni
is expected to amount to approximately $325 million. In the same
basin Eni purchased a 39% interest in the WA 34-R permit where
the Rubicon and Prometeus fields are located.</p>

<p>In December 2005 Eni signed Heads of Agreement with the Darwin
Power and Water Utility Company for the supply of a total amount
of 20 BCM of natural gas from the Blacktip field for a 25 year
period starting in January 2009.</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>As part of the development plan of the natural gas discoveries
in the area between the end of 2005 and the beginning of 2006 the
Ika, Ida, Ivana C and K fields were started up. Production from
these fields is sent to the Ivana K platform and from this
platform through a 57-kilometer long pipeline to the Garibaldi K
platform. A 43-kilometer long pipeline is under construction to
reach the Croatian coast near Pula. Two fields, Katarina and
Annamaria, are under development and are expected to start-up in
late 2006 and early 2009, respectively.</p>

<p>In the medium term, management expects to increase Eni&#146;s
production to approximately 7 KBOE/d benefiting from the full
production of the new fields.</p>

<p><i>Indonesia</i> Eni has been present in Indonesia since 2000.
In 2005 hydrocarbon production net to Eni averaged 22 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>Offshore exploration activity yielded positive results in the
Bukat block (Eni operator with a 41.25% interest) in the Tarakan
basin offshore Borneo with the drilling of appraisal wells on the
Aster oil discovery made in 2004. The Aster 2 and 3 wells
confirmed the presence of additional reserves of high quality
hydrocarbons and the exploration potential of the basin. In 2006
and 2007 further appraisal activities are scheduled in order to
reach a definition of the field&#146;s development plan.</p>

<p><i>Iran</i> Eni has been present in Iran since 1957. In 2005
liquid production net to Eni averaged 35 KBBL/d. The main
producing oil fields operated by Eni under buy-back contracts
are: (i) South Pars phases 4 and 5 (Eni operator with a 60%
interest, the remaining 40% interest being held by Iranian
partners) in the offshore of the Persian Gulf. These phases were
started up in 2004. At the beginning of 2005 the gas treatment
plant as part of the development project of the field was
completed. In 2005, production of gas reached a rate equivalent
to the 706 BCF/y production plateau; the field produced also one
million tonnes/y of propane and butane and 108 KBBL/d of
condensates (33 KBBL/d of condensates net to Eni) through
separation from natural gas. Eni&#146;s share of condensates is
destined to cover development costs incurred by Eni and to
remunerate capital employed by Eni; and (ii) the Darquain oil
field (Eni operator with a 60% interest, the remaining 40%
interest being held by Iranian partners) located onshore
approximately 50 kilometers north-east of Abadan. On this field
the second development phase is underway and aims at increasing
production from the present 50 KBBL/d to over 160 KBBL/d (14
KBBL/d net to Eni) through the increase of the existing treatment
capacity, the drilling of new producing wells and the injection
of gas. These two fields account for 85% of Eni&#146;s production
in Iran.</p>

<p>Eni also holds interests in the Dorood (45%) and Balal (45%)
oil fields in the offshore of the Persian Gulf located
respectively near the Kharg island and about 100 kilometers
south-west of the Lavan island. The development of Dorood is
expected to be completed at the end of 2006 with a peak
production of 50 KBBL/d.</p>

<p><i>Kazakhstan</i> Eni has been present in Kazakhstan since
1992. Eni is co-operator with British Gas with a 32.5% interest
of the Karachaganak oil, gas and condensate field. In 2005
production from this field (net to Eni) averaged 64 KBBL/d of
liquids and 207 mmCF/d of natural gas. Most of the liquids
produced are exported to Western markets through the Caspian
Pipeline Consortium pipeline (Eni&#146;s interest 2%). This
pipeline is connected to the Novorossiysk terminal on the Russian
coast of the Black Sea. In 2005 exports amounted to 42.5 KBBL/d
net to Eni, corresponding to 41.7% of oil and gas produced by the
field net to Eni. The rest of liquid production is exported and
sold, as unstabilized condensates, on the Russian and Kazakh
markets. The development plan of the field provides for the
production of additional liquid and gas reserves by means of a
gas treatment plant and the drilling of production wells.</p>

<p>As part of the North Caspian Sea PSA, where the Kashagan field
is located, on March 31, 2005 Eni (operator) and the other
members of the consortium, except for one, purchased British
Gas&#146;s interest (16.67%) in proportional shares, according to
the option exercised in May 2003, and sold half of this newly
acquired interest to the national Kazakh company Kazmunaygaz
(KMG), a new partner in the PSA with an 8.335% interest.
Following these two transactions (the sale to KMG was closed in
May 2005), Eni increased its interest from 16.67% to 18.52% and
continues acting as operator. The outlay for this transaction
amounted to $200 million. The development plan of the Kashagan
field, presented at the end of 2002 and approved in February
2004, mainly foresees: (i) production start-up in 2008 at an
initial level of 75 KBBL/d. Management plans production level to
increase to 450 KBBL/d at the end of the first phase of
development and to reach a plateau of 1.2 mmBBL/d at the end of
the field development; (ii) total capital expenditure estimated
at $29 billion ($5.4 billion being Eni&#146;s share). Such
capital expenditure plan is currently under revision in order to
take into account depreciation of the U.S. dollar versus the euro
and the rising trends in the costs of certain production factors
(such as materials and oilfield services). The above mentioned
amount does not include the capital expenditure for the
construction of the infrastructure for exporting production to
international markets, for which various, options are under
scrutiny by the consortium. These include: (i) the use of
existing infrastructure, such as the Caspian Pipeline Consortium
pipeline and the Atyrau-Samara pipeline; and (ii) the laying of a
pipeline connecting the Bolashak production center with the
Baku-Tbilisi-Cehyan pipeline (BTC, Eni&#146;s interest 5%). This
new system includes the laying of a 750-kilometer long pipeline
with a 42 inch diameter from Bolashak to Kuryk and a reception
terminal on the other side of the Caspian Sea near the starting
point of the BTC pipeline.</p>

<p>At December 31, 2005, the total amount of contracts awarded
for the development of the field was over $8.8 billion for the
completion of the first phase of the field&#146;s development
plan (Tranches 1 and 2) which includes the drilling of
development wells, the construction of infrastructure and
facilities for offshore production (drilling, treatment and
reinjection of sour gas for maximizing the oil yield) and onshore
treatment plants. The most advanced techniques are going to be
applied in the construction of the planned infrastructure and
facilities in order to cope with high pressures in the field and
the presence of hydrogen sulphide.</p>

<p>In the medium term, management expects to increase Eni&#146;s
production in Kazakhstan from the current level of 100 KBOE/d
leveraging on the development of natural gas reserves at
Karachaganak and the start-up of Kashagan.</p>

<p><i>Pakistan</i> Eni has been present in Pakistan since 2000.
In 2005 production net to Eni averaged 48 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 2005 accounted for 43% 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 Gorakh permit (Eni&#146;s interest
92.5%) in Kirthar Foldbet area and holds an interest in other
permits in the Middle Indus Basin.</p>

<p>Eni purchased the Indus M and Indus N exploration permits in
the offshore of the Indus Delta with a total area of 5,000 square
kilometers. In February 2006 Eni purchased the permits Rajar,
Mithi, Thar and Umarkot in the East Sindh area.</p>

<p><i>United States</i> Eni has been present in the United States
since 1966 and holds various mineral interests in the Gulf of
Mexico and Alaska. In 2005 Eni&#146;s hydrocarbon production
averaged 33 KBOE/d and was obtained in the Gulf of Mexico. The
main producing fields operated by Eni are Allegheny (Eni&#146;s
interest 100%) and King Kong (Eni&#146;s interest 50%). Another
relevant field is Medusa (Eni&#146;s interest 25%). These fields
accounted for 71% of Eni&#146;s production in 2005.</p>

<p>In May 2005 the K2 oil field (Eni operator of the development
phase with an 18.17% interest) was started-up. The field&#146;s
development includes two additional subsea wells linked to the
nearby Marco Polo platform, operated by a partner. A peak
production of 38 KBOE/d (7 KBOE/d net to Eni) is expected in
2007.</p>

<p>Eni purchased 22 exploration blocks in the Gulf of Mexico
following its participation to the 194 (March 2005) and 196
(August 2005) Lease Sale.</p>

<p>In Alaska in August 2005, Eni purchased from the U.S.
independent company Armstrong Oil &amp; Gas 104 exploration
blocks onshore in the North Slope and offshore in the Beaufort
Sea. The blocks, with a total acreage of 1,409 (1,111 net to Eni)
square kilometers, include two fields in the pre-development
phase holding estimated 170 mmBBL of oil of reserves.</p>

<p>Production for 2005 was adversely impacted by shutdowns of
certain facilities as a consequence of the hurricane season.
Management expects residual hurricane-related impact in 2006. See
the paragraph &quot;Production&quot; above and &quot;Item 5
&#150; Recent Developments&quot;.</p>

<p><i>Venezuela</i> Eni has been present in Venezuela since 1998.
In 2005 daily production averaged 61 KBBL/d net to Eni and came
from the Daci&#243;n oil field. See the paragraph &quot;Oil and
natural gas reserves&quot; above.</p>

<p>The development of the Corocoro oil field (Eni&#146;s interest
26%) in the West Paria Gulf is in progress. The plan provides for
a phased development depending on the results from wells and
reaction of the field to water and gas reinjection. Production is
expected to start in 2008 with a peak of about 70 KBBL/d (17
KBBL/d net to Eni) in 2009.</p>

<p>In January 2006, following an international bid, Eni was
awarded the Cardon IV Block exploration license in joint venture
with another international oil company in the Gulf of Venezuela.<br>
</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;.<br>
</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 2005 Stogit increased the share of storage capacity used by
third parties up to 56% (53% in 2004). 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 44% of total
revenues in 2005.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="58%"><font size="1"><b>Storage</b></font></td>
        <td valign="bottom" width="10%">&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>
        <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" width="58%">&nbsp;</td>
        <td width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="47%"><font size="2">Available
        capacity:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="20%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="47%" bgcolor="#EEEEEE"><font
        size="2">- modulation and mineral </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="20%"
        bgcolor="#EEEEEE"><font size="1">(BCM) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.5</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.5</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="47%"><font size="2">&nbsp;&nbsp;&nbsp;.
        share utilized by Eni </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="20%"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">66</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">47</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">44</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="47%" bgcolor="#EEEEEE"><font
        size="2">- strategic </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="20%"
        bgcolor="#EEEEEE"><font size="1">(BCM)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.1</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="47%"><font size="2">Total
        customers</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="20%"><font
        size="1">(No.)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">20</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">30</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">39</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">44</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="47%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;. modulation and upstream
        storage customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="20%"
        bgcolor="#EEEEEE"><font size="1">(No.)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">14</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">29</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">35</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="58%">&nbsp;</td>
        <td width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<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 plans to grow natural gas sales in the rest of Europe and
to develop its presence 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
and increasingly intense competition. In Italy, Eni plans to
comply with regulatory limits on direct sales and input volumes
to the national transport network through an 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. In the medium term, management expects
natural gas sales in Italy to decline from the 58 BCM level
recorded in 2005 as a consequence of increasing competition from
third parties. Eni plans to implement a more attractive
commercial offer than Eni&#146;s competitors&#146; on the basis
of the quality of services, pricing formulas, including different
indexation schemes to suit various customer&#146;s purchasing
profile, and the integration of supply of gas and electricity.
Management plans to grow natural gas sales on the European market
leveraging on Eni&#146;s availability of equity gas and a
diversified portfolio of supply contracts, an extensive gas
pipeline network, which allows for the supply of natural gas from
several sources, and long standing relationships with producing
countries. Eni intends to strengthen its presence in markets
where its presence is already established &#150; such as the
Iberian Peninsula, Germany and Turkey &#150; and to develop sales
in markets with significant growth and profitability prospects
(in particular France and the United Kingdom).</p>

<p>Eni also intends to accelerate the development of its LNG
business on a global scale through the acquisition of interests
in assets covering the whole LNG chain (in particular
regasification terminals) and also to monetize its natural gas
reserves in West and North Africa, in the Far East.</p>

<p><i>The matters regarding future natural gas demand and sales
target discussed in this section and elsewhere here in 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.<br>
</i></p>

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

<p>In 2005, natural gas demand in Italy totalled 86 BCM
(increasing by over 7% over 2004). In 2005, about 18% of natural
gas requirements were met through domestic production (including
natural gas volumes offtaken from storage), while imports covered
82%. Eni expects natural gas consumption in Italy to reach about
95 BCM in 2010, corresponding to an compound annual growth rate
of about 2%.</p>

<p>Most of this increase is expected 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.<br>
</p>

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

<p>In 2005, Eni&#146;s Gas &amp; Power segment purchased 82.56
BCM of natural gas, with a 6.47 BCM increase over 2004, up 8.5%,
in line with the increase in sales and related to higher volumes
purchased outside Italy (7.04 BCM), offset in part by lower
production volumes supplied in Italy (0.57 BCM). Natural gas
volumes supplied outside Italy (71.83 BCM) represented 87% of
total supplies (85% in 2004).</p>

<p>Outside Italy increases concerned purchases from Libya (3.29
BCM) and from Algeria (0.72 BCM). Imports of LNG destined to
Italy increased by 0.18 BCM due to the partial resumption of
supplies from Sonatrach after the accident occurred in early 2004
at the Skikda liquefaction plant in Nigeria.</p>

<p>In 2005, a total of 0.84 BCM of natural gas were withdrawn
from the storage sites of Stoccaggi Gas Italia SpA (Eni&#146;s
interest 100%) as compared to 0.93 BCM in 2004.</p>

<p>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>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>
        <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" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(BCM)</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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>14.62</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>12.67</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>12.16</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>11.30</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>10.73</b></font></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 align="right" valign="bottom" width="6%"><font
        size="2">19.51</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">18.62</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">18.92</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">20.62</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">21.03</font></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 align="right" 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 align="right" 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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">0.63</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.60</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">2.47</font></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 align="right" valign="bottom" width="6%"><font
        size="2">18.39</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">16.35</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">16.53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">18.86</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">19.58</font></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">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">7.00</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">7.55</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">7.41</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8.45</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8.29</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Norway</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.10</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4.83</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.44</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.74</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.78</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Croatia</font></td>
        <td valign="bottom" width="1%" 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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">0.31</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.65</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.35</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.43</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">the United
        Kingdom</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.48</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.98</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.76</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">2.28</font></td>
        <td valign="bottom" width="1%">&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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">3.11</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3.05</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3.56</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3.57</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3.63</font></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 align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.55</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">3.84</font></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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">1.79</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.92</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.98</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.27</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.45</font></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 align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.30</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.72</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.69</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other supplies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">0.03</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.03</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.04</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.12</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1.18</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Others
        outside Europe</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.96</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">0.96</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.14</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.20</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1.18</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Outside Italy</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>51.89</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>55.40</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>59.00</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>64.79</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>71.83</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Total
        supplies </b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>66.51</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>68.07</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>71.16</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>76.09</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>82.56</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Withdrawals from (inputs to) storage</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">0.13</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">(1.43</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">0.84</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.93</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">0.84</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Network
        losses and measurement differences</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(0.92</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(0.50</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(0.61</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(0.53</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(0.78</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Available for sale</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>65.72</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>66.14</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>71.39</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>76.49</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>82.62</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<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 15 years.
Existing contracts, which in general contain take-or-pay clauses,
will ensure a total of about 67.3 BCM/y of natural gas (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 &quot;Item 5 &#150; Contractual
Obligations&quot;.</p>

<p>In 2005 Eni withdrew about 3.8 BCM more than its minimum
offtake obligation. See &quot;Item 5 &#150; Recent Developments
and Management Expectations of Operations&quot;.</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. The European Commission approved this
transaction and 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.<br>
</p>

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

<p>In 2005 natural gas sales (91.15 BCM, including own
consumption and Eni&#146;s share of sales of affiliates)
increased by 7.34 BCM over 2004, up 8.8%, due mainly to higher
sales in the rest of Europe (up 3.15 BCM), in the Italian market
(up 2.39 BCM, or 4.8%) and natural gas supplies for power
generation at EniPower&#146;s power stations (up 1.84 BCM, or
49.7%).</p>

<p>In an increasingly competitive market, natural gas sales to
third parties in Italy (52.47 BCM) increased by 2.39 BCM over
2004, down 4.8%, reflecting an increase in sales to end users,
also due to a cold winter, primarily relating to power generation
(up 1.68 BCM or 10.6%), industries (up 0.68 BCM or 5.5%) and the
residential and commercial segment (up 0.44 BCM or 6%). These
increases were offset in part by lower sales to wholesalers (down
1.82 BCM or 13.1%) related to the so called gas release carried
out in accordance with certain decisions of the Antitrust
Authority. See &quot;Regulation of the Italian Hydrocarbon
Industry &#150; Gas &amp; Power &#150; Inquiries by Italian and
European Antitrust Authorities &#150; Sales contracts outside
Italy&quot; below. </p>

<p>Natural gas sales in the rest of Europe (23.44 BCM) increased
by 1.9 BCM (up 8.8%) due to increases registered in: (i) supplies
to the Turkish market via the Blue Stream gasline (up 0.86 BCM);
(ii) sales under long-term supply contracts to importers to Italy
(up 0.57 BCM), also due to reaching full supplies from Eni&#146;s
Libyan fields; (iii) France, related to the increase in supplies
to industrial customers and to wholesalers (up 0.5 BCM); and (iv)
Germany and Austria related to increased supplies (up 0.3 BCM) to
Eni&#146;s affiliate GVS (Eni&#146;s interest 50%) and other
operators.</p>

<p>Own consumption<a href="#(7)"><sup>7</sup></a> was 5.54 BCM,
up 1.84 BCM from 2004, or 49.7%, reflecting primarily higher
supplies to EniPower due to the coming on stream of new
generation capacity, primarily reflecting supplies to EniPower
(4.41 BCM), to Polimeri Europa (0.35 BCM) and to Eni&#146;s
Refining &amp; Marketing segment (0.27 BCM).</p>

<p>Sales of natural gas by Eni&#146;s affiliates (net to Eni and
net of Eni&#146;s supplies) amounted to 8.53 BCM, increasing by
1.21 BCM over 2004, up 16.5%, and concerned: (i) GVS (Eni&#146;s
interest 50%) with 3.39 BCM; (ii) Galp Energia (Eni&#146;s
interest 33.34%) with 1.56 BCM; (iii) Uni&#243;n Fenosa Gas
(Eni&#146;s interest 50%) with 1.52 BCM; and (iv)&nbsp;volumes of
natural gas (1.45 BCM) treated at the Nigeria LNG Ltd
liquefaction plant (Eni&#146;s interest 10.4%) in Nigeria, sold
by Nigeria LNG Ltd to U.S. 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>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>
        <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" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(BCM)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Italy</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>56.74</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>50.43</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>50.86</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>50.08</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>52.47</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Wholesalers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">21.09</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17.02</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15.36</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13.87</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12.05</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Gas
        release</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.54</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.95</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">End customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">35.65</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">33.41</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">35.50</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">35.67</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">38.47</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Industrial
        users</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">18.53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">14.43</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">13.17</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.39</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">13.07</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Thermoelectric users</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12.21</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12.48</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15.03</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15.92</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17.60</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Residential</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4.91</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6.50</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7.30</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7.36</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7.80</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Rest of Europe</i></b><i> </i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>6.05</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>12.77</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>17.54</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>21.54</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>23.44</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Outside
        Europe</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>0.93</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>0.92</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>1.09</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>1.17</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>1.17</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total sales to third parties</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>63.72</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>64.12</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>69.49</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>72.79</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>77.08</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Own
        consumption</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.00</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.02</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.90</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.54</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total sales to third parties and own
        consumption</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>65.72</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>66.14</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>71.39</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>76.49</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>82.62</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Sales
        of natural gas of Eni&#146;s affiliates </b>(net to Eni)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>1.38</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>2.40</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>6.94</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>7.32</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>8.53</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Europe</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.93</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.93</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.23</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.60</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.85</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Outside
        Europe</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.45</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.47</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.71</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.72</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.68</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total sales of natural gas</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>67.10</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>68.54</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>78.33</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>83.81</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>91.15</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<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 (industries and power
stations); (ii) customers of the residential and commercial
sector 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 selling companies and
distributors of natural gas for automotive use) purchasing
natural gas to sell it to residential and commercial customers.</p>

<p>In 2005, Eni&#146;s natural gas sales to wholesalers amounted
to 12.05 BCM (down 13.1% over 2004).</p>

<p>In 2005, natural gas consumption in the Italian industrial
segment amounted to approximately 21.8 BCM (approximately 25% of
total final consumption), with a 2.3% decrease from 2004. In
2005, Eni&#146;s sales of natural gas to industrial users
amounted to 13.07 BCM (up 5.5% over 2004).</p>

<p>In 2005, natural gas consumption in the Italian thermoelectric
segment amounted to approximately 33 BCM (approximately 38% of
total demand), with an approximately 14% increase over 2004. In
2005, Eni&#146;s sales of natural gas to thermoelectric users
amounted to 17.60 BCM (up 10.6% over 2004).</p>

<p>Natural gas consumption in the residential and commercial
segment amounted to over 30 BCM (35% of total demand), with a
6.9% increase from 2004 due to the effect of weather conditions.
Eni manages directly over 5 million residential customers and in
2005 Eni&#146;s sales to this segment amounted to 7.8 BCM (up 6%
from 2004).<br>
</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 33,000 kilometers, of which 30,712 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, 2005 the national pipeline network owned by
Eni extended for 8,392 kilometers.</p>

<p>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:</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-inch
        diameter, each approximately 1,500-kilometer long,
        including the smaller pipe that crosses underwater the
        Messina Strait, which links Mazara del Vallo (on the
        Southern coast of Sicily) to Minerbio (near Bologna).
        This pipeline is undergoing an upgrade with the laying of
        a third line with 48 inch diameter that is 290-kilometer
        long (of these 241 are already operating). Transport
        capacity at the Mazara del Vallo entry point is
        approximately 83 mmCM/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 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%">a 36-inch line, 67-kilometer
        long linking Gela, the entry point of the Greenstream
        underwater pipeline into the national network near Enna
        along the import pipeline from Algeria. Transport
        capacity at the Gela entry point is approximately 26
        mmCM/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="92%">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 42/36/34-inch
        diameters extending for a total length of approximately
        900 kilometers that are linked to the Austrian network in
        Tarvisio and cross the Po Valley reaching Sergnano (near
        Cremona) and Minerbio. The pipeline is being upgraded by
        the laying of a third 264-kilometer long line with
        diameter from 48 to 56 inches; 214 kilometers were
        already operating at the end of 2005, from Tarvisio to
        Zimella (Verona). The pipeline transport capacity at the
        Tarvisio entry point amounts to approximately 99 mmCM/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="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 63
        mmCM/d.</td>
    </tr>
</table>

<p>In 2005 Eni&#146;s national network increased by 196
kilometers due to the upgrade of the trunklines for gas imported
from Russia and Algeria.</p>

<p>Eni&#146;s regional transmission network is made up of pipes
with smaller diameter than the national lines for a total length
of 22,320 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 2005, Eni&#146;s regional network decreased by 29
kilometers despite the entry into service of new lines.</p>

<p>Eni&#146;s system is completed by: (i) 11 compressor stations
with a total power of 683 megawatt; 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 for the Greenstream pipeline.</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 2005 this system
obtained the ISO 9001-2000 certification. Peripheral units are
represented by eight districts that monitor the transmission
network through 60 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 also enters Eni&#146;s system 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 BCM/y into the transmission
network. In 2005, volumes of LNG regasified amounted to the
equivalent of approximately 2.49 BCM of natural gas. </p>

<p>In 2005 a total of 85.1 BCM of natural gas were input into the
national network, of 64% of which was owned by Eni.</p>

<p>In the next four years Eni plans to carry out capital
expenditure of approximately euro 3.5 billion aimed at the
upgrade of its transport network in view of the expected increase
in import capacity (in particular from Russia and Algeria).</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Natural
        gas transported in Italy</b> <sup>(1)</sup></font></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>
        <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" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(BCM)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Eni</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>58.17</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>54.56</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>51.74</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>52.15</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>54.88</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Third parties</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>11.41</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>19.11</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>24.63</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>28.26</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>30.22</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6.28</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">8.28</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9.18</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9.25</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9.90</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Edison Gas</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.98</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.61</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.49</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8.00</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.78</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.15</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6.22</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7.96</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">11.01</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.54</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>69.58</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>74.40</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>76.37</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>80.41</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>85.10</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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><br>
The Italian natural gas system is supplied for about 82% 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="1%">&nbsp;</td>
        <td valign="top" width="97%">the TAG pipeline, a
        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 81.3 mmCM/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. Eni
        plans to upgrade this pipeline. See &quot;Development
        Projects&quot; below; </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the Transitgas pipeline, a
        291-kilometer long pipeline, with one compression
        station, which transports natural gas from the
        Netherlands and from Norway crossing Switzerland with its
        165-kilometer long main line and a 71-kilometer long
        doubling line from Wallbach where it joins the TENP
        pipeline to Passo Gries at the Italian border. It has a
        transit capacity of 61 mmCM/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="1%">&nbsp;</td>
        <td valign="top" width="97%">the TTPC pipeline, a
        742-kilometer long pipeline, made up of two lines each
        371-kilometer long with a transit capacity of 81.2 mmCM/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="1%">&nbsp;</td>
        <td valign="top" width="97%">the TMPC pipeline for the
        import of Algerian gas, which is 775-kilometer long, made
        up of five lines, each 155-kilometer long with a transit
        capacity of 101 mmCM/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; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the Greenstream pipeline for
        the import of Libyan gas, a 520-kilometer long, with a
        transit capacity of 24.4 mmCM/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, in which Eni has a 75% interest
        (the remaining 25% share being held by the National Oil
        Company), started operations in October 2004 and by 2006
        is expected to transport 8 BCM/y already booked under
        long-term contracts with Italian operators. In the long
        term, Eni plans to upgrade the transport capacity of this
        gasline from 8 to 11 BCM/y, starting in 2010 with an
        expected capital expenditure of euro 80 million.</td>
    </tr>
</table>

<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 mmCM/d, is expected to transport 16
BCM/y 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). At the end of 2005 the first section of
the Dzhubga compression station on the Russian coast of the Black
Sea started operations. It is made up of three turbocompressors
and three turbogenerators that will allow to increase the volumes
of gas transported.<br>
</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 distribution activity in Italy
serving 1,282 municipalities through a low pressure network
consisting of over 48,000 kilometers of pipelines, supplying 5.8
million customers at December 31, 2005. 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
three year extension in case of public interest). See
&quot;Regulation of the Italian Hydrocarbon Industry Gas &amp;
Power&quot; below.<br>
</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 strengthen its market share in area where its
presence is already established (Iberian Peninsula, Germany,
Turkey) and to develop sales in markets with interesting growth
and profitability prospects (in particular France and the United
Kingdom). Eni plans to increase the flexibility of its operations
by upgrading its logistical assets.</p>

<p>In these European markets Eni can leverage on the availability
of equity gas and a diversified portfolio of supply contracts, an
extensive gas pipeline network, which allows for the supply of
natural gas from several sources, and long standing relationships
with producing countries. Eni intends to 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 (such as the
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 holds a 50% interest. 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 BCM/y of gas 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 BCM/y of natural gas to the German
company Wingas. The gas will be delivered at Eynatten at the
German-Belgian border. In the medium term, Eni plans to increase
its natural gas sales from the 4.2 BCM level recorded in 2005.</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 December 29, 2005,
Eni, Amorim Energia (a privately held Portuguese company in which
Sonangol, the national oil company of Angola, holds a minority
stake) and Rede Electrica Nacional (REN) entered an eight year
long shareholders agreement for the joint management of Galp
Energia (Galp). The agreement came in force on March 29, 2006
after the occurrence of all the suspensive conditions, among
which: (i) the authorization of the European Commission issued on
March 24, 2006; (ii) the purchase on March 28, 2006 of a 1% stake
in Galp by Caixa (a primary Portuguese financial institution)
which also entered the shareholder agreement of December 2005;
and (iii) the change in the powers of the Portuguese State in
Galp (golden share) resulting from the approval by Galp&#146;s
Shareholders&#146; Meeting held on March 29, 2006 of new by-laws
consistent with the agreement between Eni, Amorim Energia, REN
and Caixa. At the present date shareholders of Galp are: Eni
(33.34%), the Portuguese State (17.711%), Parpublica (12.293%),
REN (18.30%), Amorim Energia (13.312%), Iberdrola (4%), Caixa
Geral de Depositos (1%), Setgas (0.044%).</p>

<p>Key guidelines of the agreement are as follows: (i) the
establishment of a new set of corporate governance rules setting,
among others, percentages of share capital voting rights
necessary to make relevant decisions; (ii) an industrial plan
targeting the achievement of a leading market position in natural
gas, refining and petroleum products marketing in the Iberian
Peninsula, an increase in the weight of upstream activities in
Galp&#146;s asset portfolio and access to the Portuguese
electricity sector; (iii) placement of part of the stake held by
the Portuguese State in Galp through an initial public offering
by year end of 2006; (iv) spin-off of certain regulated asset of
Galp (natural gas transport network, storage sites and the Sines
LNG regasification plant) ideally by the end of 2006; those
assets are agreed to be sold to REN; (v) transfer of REN&#146;s
stake in Galp to Amorim Energia within an 18 month period from
the effective date of the agreement; and (vi) a five year lock in
period. </p>

<p>This agreement replaces the pre-existing agreement between Eni
and the Portuguese State.</p>

<p>In 2005 Galp sold about 1.56 BCM of gas to approximately
820,000 customers and managed a high, medium and low pressure
network covering about 11,700 kilometers. The assets of Galp
include among other things two import infrastructures: the
Transmaghreb pipeline and the Sines LNG regasification plant.
Following the entry into force of the new agreement, these
transport and regasification infrastructures are expected to be
spun off.</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 sales to final users and to power generation
companies. In 2005 natural gas sales of Uni&#243;n Fenosa Gas
amounted to 1.52 BCM. Uni&#243;n Fenosa Gas is active in LNG through
an 80% interest in a liquefaction plant with a capacity of over 7
BCM/y, 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, completed in 2005.
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 between 2006 and 2007.</p>

<p>In the medium term, Eni plans to increase its natural gas
sales from the 5.3 BCM level recorded in 2005.</p>

<p><i>Turkey</i> Blue Stream 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. In November 2005 the first
section of the compressor station at Dzhubga on the Russian coast
of the Black Sea started operating. This station is made up of
three turbocompressors and three turbogenerators and will allow
to increase volumes transported. 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 2005 volumes transported and sold in Turkey amounted
to 5.14 BCM of natural gas (50% of which were Eni&#146;s share)
corresponding to an 18% market share. Volumes transported and
marketed will increase progressively in future years and are
targeted to about 16 BCM/y (8 billion net to Eni) in 2010.</p>

<p><i>France</i> In July 2005 Eni signed a long term agreement
with French company EDF for the supply of 860 mmCM/y of natural
gas starting in October 2006.</p>

<p><i>Upgrading of the international transport network</i> Eni
has defined a program for the upgrade of transport gaslines from
Algeria and Russia. Eni plans to increase the transport capacity
of the TTPC gasline from Algeria by 6.5 BCM/y, with a 3.2 BCM
starting on April 1, 2008 and an additional 3.3 BCM increase
starting on October 1, 2008 with an expected expenditure of euro
345 million. A corresponding capacity on the TMPC downstream
gasline is already available. The first section of the upgrade
was assigned to third parties in November 2005.</p>

<p>Eni plans to upgrade the transport capacity of the TAG gasline
from Russia by 6.5 BCM/y with a 3.2 BCM increase starting on
October 1, 2008 and an additional 3.3 BCM increase starting on
April 1, 2009 with an expected expenditure of euro 275 million.
The first section of the upgrade was assigned to third parties in
February 2006. In addition, the upgrade related to the build-up
of the fourth import contract from Russia is nearly completed (up
4 BCM from 2007).</p>

<p>Considering also the full capacity from 2006 of the
Greenstream gasline from Libya (8 BCM/y) and the upgrade underway
of the TAG gasline in the light of the build-up of the fourth
import contract from Russia (up 4 BCM/y from 2007), from 2009 a
total of about 25 BCM/y of new import capacity are expected be
available for the Italian market. Except for the 4 BCM/y of the
Russian contract, 14.4 BCM of this new capacity have already been
sold to third parties and a further 6.6 BCM/y are expected to be
sold under open bidding procedures.</p>

<p><i>Libya</i> Eni&#146;s Gas &amp; Power segment purchase 80%
of the natural gas production of the Libyan natural gas producing
field of Wafa and Bahr Essalam operated by Eni (with a 50%
interest). The share of production belonging to the Libyan
partner National Oil Company is purchased under a long term
supply contract with a 24 year term. When the two fields achieve
full production in 2006, production plateau volume are expected
to be 10 BCM/y of which 8 BCM/y will be purchased by Eni&#146;s
Gas &amp; Power segment and imported to Italy via the
Greeenstream gasline. These volumes are sold to Italian third
party importers under long term supply contracts with a 24 year
term and delivery point at Gela in Sicily. The remaining 2 BCM/y
natural gas availability from production is expected to be sold
on the Libyan market by the two partners.<br>
</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>United States</i> On August 1, 2005, Eni signed an
agreement with the U.S. company Cameron LNG LLC (belonging to the
Sempra Energy group) to purchase a share of the regasification
capacity of the Cameron liquefied natural gas terminal under
construction in Louisiana expected to be completed in 2008-2009.
The share of regasification capacity purchased amounts to 6 BCM/y
for a period of 20 years, which corresponds to about 40% of the
overall initial capacity of the terminal (15.5 BCM/y). This
transaction will enable Eni to sell part of its natural gas
reserves from North African and Nigerian fields in the United
States.</p>

<p><i>Egypt</i> In January 2005, the first LNG shipment was made
from the Damietta liquefaction plant (Eni&#146;s interest 40%
through its 50% interest in Uni&#243;n Fenosa Gas) that is targeted
to produce about 7 BCM/y. The partners in the project (Uni&#243;n
Fenosa Gas, the Egyptian company EGAS and oil producers Eni and
BP) have planned an expansion of the plant consisting in the
construction of a second train with the same capacity of the
first one with expected capital expenditure amounting to
approximately $1.5 billion and start-up in 2009. Eni will supply
about 3 BCM/y of natural gas to the first train for twenty years.
Further volumes will be supplied to the second train under an
intent protocol signed in March 2005 with the Egyptian
Government.</p>

<p><i>Spain</i> Eni holds a 9.5% and a 21.25% interest in the El
Ferrol and Sagunto regasification plants under construction and
expected to start operations between 2006 and 2007. Eni&#146;s
share of regasification capacity amounts to 1.8 BCM/y.<br>
</p>

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

<blockquote>
    <p><i>Agreement between Eni and Gazprom/Gazexport</i></p>
</blockquote>

<p>In October 2005 Eni and Gazprom agreed to promote a new set of
agreements aimed at widening their cooperation agreeing also to
cease a previous agreement signed in May 2005. Negotiations are
underway.</p>

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

<p>In March 2005, after receiving the authorization of the
Italian Antitrust Authority, Italgas divested its majority
interest (67.05%) in Societ&#224; Azionaria per la Condotta di Acque
Potabili to Amga SpA and Smat SpA for a cash consideration of
euro 85 million (euro 15.57 per share). In May 2005, after
receiving the authorization of the Italian Antitrust Authority,
Italgas divested its 100% interest in Acquedotto Vesuviano SpA to
Gori SpA for a cash consideration of euro 20 million. The above
transactions are part of Eni&#146;s strategy of concentrating its
resources in its core natural gas business.</p>

<blockquote>
    <p><i>Purchase of Siciliana Gas</i></p>
</blockquote>

<p>In May 2006 Eni purchased a 50% interest of Siciliana Gas SpA
for a cash outlay of euro 98 million. The Italian Antitrust
Authority approved the transaction on February 1, 2006. With this
purchase Eni becomes the sole owner of Siciliana Gas SpA and
through this company also of 100% of Siciliana Gas Vendite SpA.
Siciliana Gas SpA has been operating in Sicily since 1979 and
holds the rights for the distribution of gas to 76 Sicilian
municipalities, including Agrigento, Enna, Trapani and Gela (of
these 70 concessions are operating) through a 2,600-kilometer
long network and with 186 employees. It owns Siciliana Gas
Vendite SpA operating in the sale of natural gas to end users
with approximately 215,000 customers and sales volumes of about
190 mmCM/y and 50 employees.</p>

<blockquote>
    <p><i>Toscana Energia SpA</i></p>
</blockquote>

<p>On January 24, 2006, Eni, Italgas and the local authorities
partners of Fiorentina Gas SpA and Toscana Gas SpA signed a
framework agreement for developing an alliance in the area of
natural gas distribution and sale. As part of the agreement, the
partners incorporated Toscana Energia SpA (Eni&#146;s interest
48.7% the remaining 51.3% interest being held by municipalities
and local banks) to which they contributed in kind their
interests in Fiorentina Gas and Toscana Gas. These two companies
operate in natural gas distribution to 97 municipalities through
a 7,900-kilometer long network serving 1.6 million customers.
They will be merged in Toscana Energia within two years under the
framework agreement. The local authority partners will play a
role of strategic guidance and control, while Italgas is the
industrial partner and has operating and management
responsibilities. The agreement provides also for the
establishment of a regional sales company (600,000 customers, 1.1
BCM sold in 147 Tuscan municipalities) under Eni&#146;s control,
through the merger of Toscana Gas Clienti SpA (Eni&#146;s
interest 46.1% through Italgas) and Fiorentina Gas Clienti SpA
(Eni&#146;s interest 100%).<br>
</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
4.5 gigawatt at December 31, 2005 (3.3 gigawatt in 2004).</p>

<p>In 2005, Eni sold 27.56 terawatthours of electricity, of which
about 22.77 were produced by EniPower, corresponding to over 5%
of the Italian market, and 10.66 million tonnes of steam.
Approximately 57% of sales were directed to end users, 28% to the
Electricity Exchange, 8% to GRTN/Terna (under CIP 6/92 contracts
and imbalances in input) and 7% to wholesalers. All the steam
produced was sold to end users.</p>

<p>Eni is completing a plan for expanding its electricity
generation capacity targeting in 2009 an installed capacity of
5.5 gigawatt with production amounting to 30 terawatthours from
2008, corresponding to over 10% of electricity generated in Italy
at that date. Planned expenditure amounts to euro 2.4 billion, of
which euro 1.8 billion is already expensed.</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="#(8)"><sup>8</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 million tonnes, as compared
to emissions caused by conventional power stations. </p>

<p>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 is
expected to reach over 6 BCM/y, supplied by Eni.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Power
        Generation</b></font></td>
        <td valign="bottom" width="20%">&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="20%">&nbsp;</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>
        <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" width="46%">&nbsp;</td>
        <td valign="bottom" width="20%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2"><b>Purchases</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"><font
        size="1">(mmCM)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">940</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,617</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,384</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Other fuels</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(thousand tonnes of oil
        equivalent)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">847</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">695</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">563</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2"><b>Sales</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(terawatthour)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.55</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13.85</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22.77</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Electricity
        trading </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"><font
        size="1">(terawatthour)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.10</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.10</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4.79</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Steam</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(thousand tonnes)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">9,303</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,040</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,660</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="20%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The development plan has been completed at all sites except
for Ferrara (Eni&#146;s interest 51%), where in partnership with
Swiss company EGL AG construction is underway of two new 390
megawatt combined cycle units which will bring installed capacity
to 840 megawatt with startup expected in 2007.</p>

<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 megawatt articulated in
three combined cycle units, two of them with approximately 390
megawatt capacity are fired with natural gas, the third one with
approximately 250 megawatt capacity is 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 megawatt units
started operations in 2004. Added to the existing 190 megawatt,
the power station&#146;s installed capacity reached approximately
970 megawatt.</p>

<p><b>Brindisi</b> Three new combined cycle 390 megawatt units,
two of which started operations in 2005, the last is expected to
start operation in the second half of 2006. When fully
operational the power station will have a total capacity of
approximately 1,320 megawatt, including already existing amounts.
The completion of the power station is expected between the end
of 2005 and the second quarter of 2006.</p>

<p><b>Mantova</b> Two new combined cycle 390 megawatt units
started operations in 2005 with full operation in early 2006. The
power station will have a total installed capacity to
approximately 840 megawatt. 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 Swiss.
SEF started the construction of two new combined cycle units with
a capacity of 390 megawatt each which will bring total installed
capacity at Ferrara to 840 megawatt. Operations are expected to
start in 2007. In 2004, some 80 megawatt of capacity were
purchased.<br>
</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 the sale of refined products,
mainly in Italy and the rest of Europe.</p>

<p>In the refining business, Eni plans to strengthen the
competitive positioning of its refining system by increasing the
primary refining capacity and conversion capacity and
implementing actions to improve flexibility of refineries.
Eni&#146;s objectives are optimization of processed feedstocks,
adjustment of the slate of refined products to the evolution of
demand and strengthening of the degree of integration with
Eni&#146;s upstream activities. Eni&#146;s strategy in its
refining business is based on the following assumptions regarding
trends in demand and the trading environment: (i) an expected
worldwide decline in gasoline consumption in favor of diesel
fuel, in connection with the expected evolution of the car fleet
towards an increasingly high spread of diesel engine cars; (ii)
the progressive substitution of fuel oil with natural gas in
Italy; (iii) a further increase in worldwide differential between
light and heavy crudes that favors high conversion capacity
refineries; and (iv) the implementation of European fuel
specifications as concerns quality standards of fuels. </p>

<p>In the marketing of refined products, Eni plans to strengthen
its competitive positioning in Italy by restructuring and
upgrading its distribution network and implementing an innovative
marketing strategy, the key elements of which are expected to be
an offer of high quality fuels and differentiated promotional
initiatives intended to support customer loyalty. In the rest of
Europe, Eni intends to develop or strengthen its market share in
certain geographic areas where it can obtain logistical and
operating synergies and exploit its Agip brand. Eni plans to grow
sales volumes buying, leasing and building well equipped and high
throughput services stations and by launching marketing campaigns
aimed at consolidating the perception of the Agip brand in target
markets.</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.<br>
</i></p>

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

<p>In 2005, a total of 66.48 million tonnes of oil were purchased
(67.05 in 2004), of which 37.30 million tonnes were from
Eni&#146;s Exploration &amp; Production segment<a href="#(9)"><sup>9</sup></a>,
14.85 million tonnes under long-term contracts with producing
countries and 14.33 million tonnes on the spot market. Some 24%
of oil purchased came from West Africa, 19% from North Africa,
17% from countries of the former Soviet Union, 16% from the
Middle East, 14% from the North Sea, 7% from Italy and 3% from
other areas. Some 31.07 million tonnes were resold, representing
an increase of 1.32 million tonnes over 2004, up 4.1%. In
addition, 3.58 million tonnes of intermediate products were
purchased (3.10 in 2004) to be used as feedstocks in conversion
plants and 16.21 million tonnes of refined products (18.8 in
2004) sold as a complement to own production on the Italian
market (4.97 million tonnes) and on markets outside Italy (11.24
million tonnes).<br>
</p>

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

<p>Eni is engaged in the refining business in Italy and owns
interests in refineries in Germany and the Czech Republic with a
total refining capacity (balanced with conversion capacity) of
approximately 35 million tonnes (equal to 701 KBBL/d) of which
30.2 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. Eni plans to upgrade its refining system with a capital
expenditure for the next four years amounting to approximately
euro 2.4 billion (including logistics activities). Main actions
planned are: (i) an increase of primary processing and conversion
capacity, also in light of an expected increased availability of
equity oil in the Mediterranean area; (ii) an improvement of
refinery flexibility with the aim of optimizing feedstock
processing; and (iii)&nbsp;the production of fuels in line with
demand and in compliance with European environmental standards.
Eni also aims at achieving a higher degree of vertical
integration with Eni&#146;s upstream and downstream activities,
increasing intake processing of equity crudes and feedstock
volumes transferred to petrochemicals activities.</p>

<p>The table below sets forth certain statistics regarding
Eni&#146;s refineries at December 31, 2005.</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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </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%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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 has an operational and
strategic setup adequate to maximizing return on assets and
monetizing its geographic location with respect to end markets
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 supplies mainly markets in north-western Italy and
Switzerland. The high degree of flexibility of this refinery
allows it to process a wide range of oil from Russia, Africa and
Asia, CPC Blend crude oil from the Caspian Sea carried through
the CPC pipeline and oil from Eni&#146;s nearby Villafortuna
field. From a logistical standpoint this refinery is located
along the route of the Central Europe Pipeline, which links the
Genova terminal with French speaking Switzerland. This refinery
contains two primary distillation plants and a vacuum unit.</p>

<p>The conversion plants are: a fluid catalytic cracker (FCC), an
HDCK middle distillate conversion, a visbreaking thermal
conversion unit, two catalytic reforming plants, an isomerization
plant, an alchilation plant, an MTBE plant and three
desulphurization plants for middle distillates and one for
naphtha from cracking. In 2005 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 to upgrade the conversion capacity of this refinery;
planned actions include: (i) construction of a new hydrocracking
unit with a capacity of 28,000 BBL/d which will allow for the
production of one million tonnes/y of high quality diesel fuel
with low sulphur content; and (ii) construction of a new
deasphalting unit with a capacity of 18,000 BBL/d for the
separation of vacuum residues of asphaltenes with the aim of
obtaining additional feedstocks for the cracking plant. Works are
expected to be completed by 2008. Capital expenditure for this
project is expected to amount to euro 400 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 two reforming units, an alchilation
unit, an MTBE unit and plants for desulphurization of gasoil and
naphtha from cracking. The power plant of this refinery also
contains modern residue and exhaust fume treatment plants which
allow the complex to comply with the most exacting environmental
standards.</p>

<p><b>Taranto</b>, with a balanced primary refining capacity of
110 KBBL/d and an equivalent conversion index of 60.5%, 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 a flash vacuum unit, two plants
for the desulphurization of middle distillates, a reforming unit,
an isomerization unit and conversions plants such as: a two-stage
thermal conversion plant (visbreaking/thermal cracking) and an
RHU conversion plant, that allows to convert high sulphur content
residues into valuable products and cracking feedstocks. 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
2005 a total of 3.1 million tonnes of this oil were processed. In
the medium-term Eni plans a relevant upgrade of this refinery by
means of two projects for increasing primary refining and
conversion capacity with an expected expenditure of euro 800
million. The first project entails construction of a new 17,000
BBL/d capacity hydrocracking plant with a new associated hydrogen
unit for the manufacture of approximately 0.6 million tonnes/y of
high quality diesel fuel. Works are expected to be completed by
2008. The second project entails the construction of: (i) a new
topping plant with a capacity of 4 million tonnes/y with an
associated vacuum unit with a capacity of 2.5 million tonnes/y;
(ii) a new plant for the desulphurization of middle distillates
with a capacity of 2.3 million tonnes/y; and (iii) ancillary
units and utilities with other logistical assets. Works are
expected to be completed by 2009.</p>

<p><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 a vacuum unit, a reformer unit, an
isomerization plant, two desulphurization units for middle
distillates and two lubricant manufacturing lines. 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 reformer plant, an isomerization plant, two gasoil
desulphurization units and a two-stage thermal conversion plant
(visbreaking/thermal cracking) for increasing yields of valuable
products.</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 27 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>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/y of crude oil retains validity until
December 31, 2006 at the conditions (yields and payments)
reflecting the current setup of the refinery.</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>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>
        <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" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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%"><font size="2"><b>Italy</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td 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="60%" bgcolor="#EEEEEE"><font
        size="2">Products processed in wholly-owned refineries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">32.24</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">30.09</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">25.09</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">26.75</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">27.34</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Products
        processed for third parties</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.45</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.88</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.72</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.50</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.70</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Products processed in non owned refineries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">5.92</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">6.27</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8.43</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8.10</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8.58</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Products
        consumed and lost</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.95</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.91</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.64</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.64</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.87</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Products available</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>34.76</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>32.57</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>30.16</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>31.71</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>32.35</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Purchases
        of finished products and change in inventories</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.19</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">6.27</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.86</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5.07</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4.85</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Finished products transferred to foreign cycle</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(4.96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(5.56</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(5.19</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(5.03</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(5.82</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Consumption
        for power production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.74</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.07</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.06</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1.09</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>34.99</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>31.54</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>29.76</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>30.69</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>30.29</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Outside
        Italy</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td 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="60%" bgcolor="#EEEEEE"><font
        size="2">Products available</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">3.02</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">2.98</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3.36</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">4.04</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">4.33</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Purchases
        and change in inventories </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">10.27</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">12.16</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">12.12</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">13.78</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">11.19</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Finished products transferred from Italian cycle</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">4.96</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5.56</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5.19</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5.03</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5.82</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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 align="right" valign="bottom" width="6%"><font
        size="2"><b>18.25</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>20.70</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>20.67</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>22.85</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>21.34</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Sales in Italy and outside Italy</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>53.24</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>52.24</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>50.43</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>53.54</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>51.63</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>In 2005 refining throughputs on own account in Italy and
outside Italy were 38.79 million tonnes, up 1.10 million tonnes
from 2004, or 2.9%, due to higher processing at Eni&#146;s
wholly-owned refineries of Taranto, Livorno and Sannazzaro also
as a result of fewer maintenance standstills. These increases
were offset in part by the impact of the maintenance standstill
of the Porto Marghera refinery and lower processing at the Gela
refinery following the damage caused by a sea storm to the
docking infrastructure in December 2004. Processing on third
party refineries increased, especially at the Milazzo refinery
(Eni&#146;s interest 50%). Total throughputs on wholly owned
refineries (27.34 million tonnes) increased 0.59 million tonnes
from 2004, or 2.2%, with full balanced capacity utilization.
About 32.3% of all oil processed came from Eni&#146;s Exploration
&amp; Production segment (33% in 2004).<br>
</p>

<blockquote>
    <p><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. Transport by
sea of crudes and refined products takes place through spot and
long-term lease contracts of tanker ships. For the secondary
distribution of refined products to retail markets Eni owns a
fleet of tanker trucks and manages third-party owned vehicles.</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 CM of propane.</p>

<p>In the medium-term Eni intends to upgrade the integration of
its logistics system with its refining system. Eni plans to
upgrade logistical assets in order to support the development of
the Taranto refinery. In particular Eni is evaluating the
construction of a new storage site for gasoils and gasolines in
Campania and of three pipelines, of which two linking the
refinery to the new storage site and one for the transport of
virgin naphtha to the Eni&#146;s Brindisi petrochemical complex.
Eni intends also to optimize its logistics system by
rationalizing its structures in Lazio, the Po Valley and the
Naples area.<br>
</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>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Oil
        products sales in Italy and outside Italy</b></font></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>
        <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" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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%"><font size="2"><i>Italy</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Retail sales </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.64</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.14</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10.99</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10.93</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10.05</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Wholesale
        sales </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">11.24</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10.64</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10.35</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10.70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10.48</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>22.88</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>21.78</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>21.34</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>21.63</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>20.53</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4.23</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.82</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.79</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.05</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.07</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other sales <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7.88</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.94</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.63</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.01</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.69</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Sales
        in Italy</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>34.99</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>31.54</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>29.76</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>30.69</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>30.29</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><i>Outside Italy</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Retail
        sales rest of Europe</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.47</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.57</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.02</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.47</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.67</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Retail sales Africa and Brazil</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.71</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.44</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.18</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.57</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>4.18</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>4.01</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>4.20</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>4.04</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>3.67</b></font></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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.55</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.65</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6.01</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.30</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.50</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>9.73</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>9.66</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>10.21</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>9.34</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>8.17</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other sales <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8.52</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.04</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10.46</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13.51</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13.17</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Sales
        outside Italy</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>18.25</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>20.70</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>20.67</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>22.85</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>21.34</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>53.24</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>52.24</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>50.43</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>53.54</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>51.63</b></font></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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>In 2005 sales of refined products (51.63 million tonnes) were
down 1.91 million tonnes over 2004, or 6.2%, mainly due to the
divestment of activities in Brazil carried out in August 2004
(down 1.51 million tonnes), lower sales volumes to oil companies
and traders outside Italy (down 305,000 tonnes), declining
wholesale sales volumes in Italy (220,000 tonnes) and lower sales
on the Agip branded network (130,000 tonnes) related to lower
domestic consumption. These declines were offset in part by
higher retail and wholesale sales in the rest of Europe (357,000
tonnes) due to the implementation of Eni&#146;s development
strategy.</p>

<p>Following the approval of the Italian Antitrust Authority
granted on August 25, 2005, on September 6, 2005 Eni divested
100% of the share capital of Italiana Petroli (&quot;IP&quot;) to
api - anonima petroli italiana SpA for euro 190 million. IP is
engaged in the retail marketing of refined products through a
lease concession network of approximately 2,900 units, under the
IP brand. As part of the sale transaction, the parties signed:
(i) a five year fuel supply agreement under which IP will
purchase from Eni agreed amounts of fuel each year; and (ii) an
18 month long agreement for the supply of lubricants and fuel
transport services from storage sites to service stations.
Consequently the impact on sales of the divestment of IP was
marginal since the lower volumes sold on the retail market were
substantially offset by the volumes supplied to the divested
company under the contracts in force.<br>
</p>

<blockquote>
    <p><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 2005
(10.05 million tonnes) were down 0.88 million tonnes from 2004,
or 8.1%, reflecting primarily the divestment of IP. Sales volumes
on the Agip branded network (8.76 million tonnes) were down
130,000 tonnes, or 1.5%, due mainly to a decline in domestic
consumption (down 1.9%) in particular of gasoline and LPG, whose
effects were offset in part by an improved performance. Market
share of the Agip network was up 0.2 percentage points from 29.5
to 29.7%. Average throughput of gasoline and diesel fuel of the
Agip network was substantially unchanged at 2,509,000 liters
(down 0.7% from 2004).</p>

<p>At December 31, 2005, Eni&#146;s retail distribution network
in Italy consisted of 4,349 service stations, 2,895 less than at
December 31, 2004 (7,244 service station), due to the divestment
of IP (2,915 service stations). Excluding the effect of IP&#146;s
sale, the Agip branded network increased by 20 units from
December 31, 2004 as a result of the positive balance of
acquisitions/releases of lease concessions (27 units), the
opening of 12 new service stations and an increase in highway
service stations (two service stations) offset in part by the
closure of 21 less efficient service stations.</p>

<p>Eni plans to strengthen its competitive positioning in Italy
by restructuring and upgrading its distribution network and
implementing an innovative marketing, the key elements of which
are expected to be an offer of high quality fuels and
differentiated promotional initiatives intended to support
customer loyalty.</p>

<p>In 2005 sales volumes of BluDiesel &#150; a high performance
diesel fuel virtually sulphur free that improves engine
performance &#150; on the Agip branded network amounted to nearly
1 billion liters, a decline of about 13% from 2004 due mainly to
the increasingly high sensitivity of consumers to the price of
fuels in light of the increase in prices in the year. At 2005
year end service stations selling BluDiesel were over 4,000
(about 3,900 at 2004 year end) corresponding to approximately 92%
of Eni&#146;s Agip branded network.</p>

<p>In 2004, Eni started to sell the new BluSuper gasoline, which
guarantees better engine performance and efficiency and reduces
polluting emissions, due 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 2005 sales
volumes of BluSuper amounted to 150 million liters. At 2005 year
end Agip branded service stations selling BluSuper were 1,719
(about 1,000 at 2004 year end) corresponding to approximately 39%
of Eni&#146;s network.</p>

<p>In January 2006 Eni started to sell &quot;Ad-Blue<sup>&#174;</sup>&quot;,
a water solution containing urea for technologically advanced
heavy duty vehicles. This additive, compatible with the new
characteristics of most trucks built in Europe reacts with
exhaust gases thus reducing emissions and consumption and
improving engine performance.</p>

<p>In 2005, Eni continued its 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; turnover on cards
increased by 9% from 2004. The amount of fuel purchased with
these cards was about 37% of all fuel sold on Agip branded
service stations. </p>

<p>Eni also continued 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, 2005 nearly all Agip branded service
stations were provided with a corporate credit card system.</p>

<p>In 2005, Eni continued the development of the European
Multicard Routex paying card addressed to professional transport
(transporters and car fleets) with sales of 1.414 billion liters
(up 3.4% over 2004), while the number of customers provided with
this card increased by about 5,000 to 50,000 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, and services to customers
in particular 1,000 caf&#233; and fast food outlets as well as
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 2005, a total of 80 new affiliates were added to the
AgipCaf&#232;<sup>&#174;</sup> branded outlets launched in 2003, and by
year end 287 franchises were active, while 10 new convenience
stores under the &quot;SpazioAgip&quot; brand name were opened,
thus reaching a total of 19 locations. Also 45 new car-wash
facilities were opened at Agip branded service stations, thus
reaching a total of 685 units. 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 2009 (50% in 2005).</p>

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

<p>At December 31, 2005, Eni&#146;s retail distribution network
outside Italy was represented by service stations located in the
rest of Europe, mainly in South-Central Germany, Spain,
South-Western France, Austria, Switzerland, the Czech Republic
and Hungary, and consisted of 1,933 service stations, 37 more
than at December 31, 2004, due in particular to the acquisition
of lease concessions in Spain, France and Germany. Throughput per
service station averaged 2,427,000 liters, up 1.4% from 2004.
Sales of refined products totalled 3.67 million tonnes,
representing an increase of 0.20 million tonnes over 2004, up
5.8%, reflecting higher sales mainly in Germany, Spain and the
Czech Republic.</p>

<p>Eni intends to develop or strengthen its market share in
certain geographic areas where it can obtain logistical and
operating synergies and exploit its Agip brand. Eni plans to grow
sales volumes buying, leasing and building well equipped and high
throughput services stations and by launching marketing campaigns
aimed at consolidating the perception of the Agip brand in target
markets.</p>

<p>Non oil activities outside Italy are performed under the
&quot;CiaoAgip&quot; brand name in 1,120 service stations, of
these 330 are in Germany and 163 in France, representing 58% of
the whole Agip branded network outside Italy (97% when
calculating the percentage on all owned service stations).<br>
</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 90 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 heavy
duty public and private transports.</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 (10.48 million tonnes)
were down 0.22 million tonnes from 2004, or 2.1%, mainly due to a
decline in domestic consumption and lower sales of fuel oil to
the power generation segment, due to the progressive substitution
of fuel oil with natural gas as feedstock for power plants.</p>

<p>Sales on wholesale markets outside Italy (4.50 million tonnes)
declined by 0.80 million tonnes, or 15.1%, due mainly to lower
LPG sales resulting from the divestment of activities in Brazil,
offset in part by higher sales in the rest of Europe, in
particular in Central-Eastern Europe, while they declined in
Germany and Spain. </p>

<p>Other sales (22.93 million tonnes) increased by 0.36 million
tonnes, or 1.6%, due mainly to higher sales in Italy related to
supplies to IP (up 650,000 tonnes) offset in part by lower sales
to oil companies and traders outside Italy (down 305,000 tonnes).<br>
</p>

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

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

<p>In Italy Eni is engaged in the production, distribution and
sale of LPG. In 2005 Eni sold 649,000 tonnes of LPG for heating
and automotive use (under the Agip brand and wholesale), with a
19% market share. An 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 five Italian
refineries and from imports received at the three coastal storage
sites located in Livorno, Naples and Ravenna. Product
availability and customer requirements are met also with 10 other
owned plants/storage sites in Italy and 45 contracts for bottling
and storage with third party facilities. Eni&#146;s LPG sales
network is organized over six sale areas with 3 direct sales
offices, 21 agencies and 24 concessionaires. Products are sold
also to over 150,000 customers owning small tanks, while the sale
network of LPG bottles includes over 11,000 outlets. In the past
few years LPG pipelines were developed and over 13,000 customers
are served through direct links with 95 storage facilities.</p>

<p>Outside Italy Eni is also present in Ecuador with a 36.4%
market share in 2005.</p>

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

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

<p>In Italy Eni is a market leader in lubricants with the
manufacturing of base oils and with a range of products including
over 650 different blends. Eni masters international
state-of-the-art 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 two
facilities for the production of additives and solvents. In 2005,
retail and wholesale sales in Italy amounted to 133,000 tonnes
with a 23.9% 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 139,000 tonnes,
of these about 50% were registered in Europe (mainly Germany, the
Netherlands and Spain).</p>

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

<p>Eni, through its subsidiary Ecofuel (Eni&#146;s interest
100%), sells about 2 million tonnes/y of oxygenates mainly MTBE
(9% of world demand) and methanol. About 67% 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), while the remaining 33% is bought from third parties. In
Venezuela Eni plans to convert its MTBE plants to the manufacture
of isoethane, due to the environmental problems posed by MTBE.<br>
</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
and intermediate products, chlorine derivatives, polystyrene,
elastomers and polyethylene. Its major production sites are
located in Italy and Western Europe.</p>

<p>In 2005 sales of petrochemical products (5,376,000 tonnes)
were up 189,000 tonnes, or 3.6% from 2004, reflecting primarily
higher sales of intermediates (up 13%), olefins (up 8.8%) and
aromatics (up 6%) related to positive demand, higher product
availability and the fact that intermediate sales, in particular
acetone and phenol, declined in the first quarter of 2004
following a standstill due to an accident at the Porto Torres
dock. These increases were offset in part by a decline in: (i)
elastomers (down 4.5%) related mainly to the standstill of the
polychloroprene rubber plant in Champagnier, France; (ii) styrene
(down 2.6%) related to standstills and shutdowns; and (iii)
polyethylenes (down 2.3%) due to weak demand for LDPE and LLDPE.</p>

<p>At December 31, 2005, Eni&#146;s sales network covered 17
countries, with Italy accounting for 51% of sales, the rest of
Europe for 44% and the rest of the world for 5% (54%, 40% and 6%,
respectively in 2004).</p>

<p>Production (7,282,000 tonnes) was up 164,000 tonnes from 2004,
or 2.3%, in particular in basic petrochemicals. Nominal
production capacity declined 1.8% from 2004 due mainly to
revisions of the nominal capacity of the Gela cracker and the
shutdown of the DMC and ABS plants in Ravenna. The average plant
utilization rate calculated on nominal capacity was up 3
percentage points from 75.2 to 78.4 due mainly to fewer
maintenance standstills.</p>

<p>About 35.8% of total production was directed to Eni&#146;s own
production cycle (36.7% in 2004). Oil-based feedstocks supplied
by Eni&#146;s Refining &amp; Marketing segment covered 23% of
requirements (22% in 2004).</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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(thousand
        tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Basic
        petrochemicals </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">6,119</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4,304</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4,013</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4,236</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4,450</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Styrene and elastomers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">1,537</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,538</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,635</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,606</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,523</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Polyethylene</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">84</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,274</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,259</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,276</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,309</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Polyurethane</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">91</font></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="6%"
        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="6%"
        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="6%"
        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="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">7,831</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">7,116</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">6,907</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">7,118</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">7,282</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Internal
        consumption</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(3,185</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(2,607</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(2,651</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(2,616</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(2,606</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">588</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">984</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,010</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">685</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">700</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total products</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">5,233</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,493</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,266</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,187</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,376</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>

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

<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>
        </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>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>
        <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" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(thousand
        tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Basic
        petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,928</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,894</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,704</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,766</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,022</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Styrene and elastomers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,138</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,151</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,171</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,038</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,003</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Polyethylene</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">84</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,448</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,391</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,383</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,351</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Polyurethane</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">83</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Total sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,233</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,493</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,266</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,187</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5,376</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
</table>

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

<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><i>Basic petrochemicals</i></p>
</blockquote>

<p>Sales of basic petrochemicals (3,022,000 tonnes) increased by
256,000 tonnes from 2004, up 9.3%, due to increases registered in
all basic chemicals businesses.</p>

<p>In olefins (up 8.8%) sales of ethylene (up 10.7%), propylene
(up 5.8%) and butadiene (up 33.6%) increased due to high demand
from the Far East. In aromatics (up 6%) sales of the most
remunerative products (paraxylene up 13.5% and metaxylene up
35.1%) increased supported by a particularly lively market. In
intermediates (up 13%) phenol sales increased 16.7% and acetone
sales increased 11.1% related to a positive trend in demand and
the fact that in the first quarter of 2004 sales declined due to
a standstill for an accident at the Porto Torres dock.</p>

<p>Basic petrochemical production (4,450,000 tonnes) increased by
214,000 tonnes from 2004 (up 5.1%) due to increases registered in
all businesses (olefins up 3.8%, aromatics up 8.4%, intermediates
up 7%).</p>

<p>Increased olefin production derived mainly from the Brindisi
(up 19.9%), Dunkirk (up 12%) and Priolo (up 8.1%) crackers.
Declines concerned Gela (down 26.7%) where only one line was
active and Porto Marghera (down 13.2%) due to a planned
maintenance standstill.</p>

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

<p>Styrene sales (581,000 tonnes) decreased by 16,000 tonnes from
2004, down 2.6%, due mainly to lower ABS/SAN availability (down
23.6%) related to the shutdown of the Ravenna plant in April 2005
and lower availability of products due to technical accidents
caused by power cutoffs at the Mantova plant in the last quarter
of 2005. This decline was offset in part by the 2.8% increase in
expandable polystyrene sales pushed by the strong increase in
demand especially in Eastern Europe, in particular for increased
consumption in the segment of thermal insulation and industrial
packaging.</p>

<p>Elastomer sales (422,000 tonnes) decreased by 19,000 tonnes
from 2004, down 4.5%, due mainly to the standstill of the
Champagnier plant (polychloroprene rubbers) and the decline in
SBR (down 12.7%) and TPR (down 2.5%) rubber due to a decline in
demand related to the crisis in the shoe manufacturing industry.
These declines were offset in part by an increase in sales of EPR
rubber (up 19.6%) and latex (up 7.5%), due to lively demand.</p>

<p>Production of styrene (1,048,000 tonnes) declined by 70,000
tonnes from 2004, due mainly to plant shutdowns and standstills.</p>

<p>Elastomers production (475,000 tonnes) decreased by 13,000
tonnes or 2.5%, due to plant standstills and a declining demand
for SBR rubber (down 4.8%) and BR (down 4.2%), while demand for
EPR rubber (up 13.7%) and latex (up 11%) increased in line with
the increase in demand.</p>

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

<p>Sales of polyethylene (1,351,000 tonnes) decreased by 32,000
tonnes from 2004, down 2.3%, due to a decline in demand for all
products, in particular LDPE (down 3.4%) and LLDPE (down 1.9%),
also due increasing competition from imported products.</p>

<p>Production (1,309,000 tonnes) increased by 33,000 tonnes or
2.6%, due mainly to increases in LLDPE (up 8%), due to the
flexibility at the Brindisi plant that produced mainly LLDPE in
its high pressure line, while HDPE production declined (down 6%).<br>
</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 and LNG.</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 transport, for the
liquefaction and treatment of natural gas, 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 2005 amounted to euro 8,188 million.
Approximately 89% of new orders acquired were represented by work
to be performed outside Italy, and 11% by work originated by Eni
companies. Order backlog was euro 9,964 million at December 31,
2005 (euro 8,521 million at December 31, 2004). Projects to be
carried out outside Italy represented 88% of the total order
backlog, while orders from Eni companies amounted to 7% of the
total.</p>

<p>On February 24, 2006, Saipem agreed to purchase the entire
share capital of Snamprogetti owned by Eni SpA. The transaction
was closed on March 27, 2006. The integration of the companies
will boost their role in the development of Eni&#146;s oil &amp;
gas core business.</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>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>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>
        <td valign="top" 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" 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>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>
<div align="left">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="56%"><font size="2"><b>Orders
        acquired</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>5,876</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>5,784</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2"><b>8,188</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,298</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,387</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,735</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%"><font size="2">Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,578</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,397</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,453</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%" bgcolor="#EEEEEE"><font
        size="2">Originated by Eni companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(%)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">14</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%"><font size="2">To be
        carried out outside Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">91</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">90</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">89</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%" bgcolor="#EEEEEE"><font
        size="2"><b>Order backlog</b> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>9,405</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>8,521</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>9,964</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%"><font size="2">Oilfield
        Services Construction</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,225</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,306</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,513</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%" bgcolor="#EEEEEE"><font
        size="2">Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,180</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,215</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,451</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%"><font size="2">Originated
        by Eni companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">8</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="56%" bgcolor="#EEEEEE"><font
        size="2">To be carried out outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="19%"
        bgcolor="#EEEEEE"><font size="1">(%)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">81</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">84</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">88</font></td>
    </tr>
</table>
</div>

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

<blockquote>
    <p><b><i>Oilfield Services and Construction</i></b></p>
</blockquote>

<p>Saipem intends to consolidate its competitive positioning in
the segment of large offshore projects for the development of
hydrocarbon fields and the construction of large export
infrastructure by leveraging on its technological and operational
skills, engineering and project management capabilities and
ability to operate in complex environments. Leveraging on these
assets, Saipem plans to address key success factors of the market
represented by the ability to evaluate risks in the bidding
phase, technological innovation, ability to manage efficiently
the execution of projects by delocalizing support activities to
low cost areas and enhancing local contents by employing local
resources and creating decentralized logistical bases.</p>

<p>Saipem intends to develop its presence and enter the strategic
segments of monetization of natural gas (GTL, LNG) and upgrading
of heavy crudes by developing the required skills and resources
mainly in the engineering and project management phases. It also
plans to expand in the leased FPSO business and in floating LNG
treatment systems for liquefaction and regasification of LNG.</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>&nbsp;</p>

<p>The most significant orders won in 2005 in oilfield services
and construction were:</p>

<p>In the Offshore construction area: in <b>West Africa</b>: two
turnkey contracts were awarded: (i) the first one for Total
Upstream Nigeria for the installation and operation of
underwater, umbilical and riser pipelines; and the construction
of an unloading terminal, a mooring system for the FPSO vessel
and the laying of a pipeline. Works will be carried out by the
Saibos FDS and Saipem 3000 vessels; and (ii) the second one for
Esso Exploration Angola Ltd for the engineering, procurement,
construction and installation of subsea lines for the Marimba
field development in Block 15; in <b>Indonesia</b>: two turnkey
contracts for BP Berau Ltd for the construction of two platforms
and the related underwater pipelines linking the Tangguh field
with the gas liquefaction plant onshore; and in <b>Thailand:</b>
a turn key contract for Thai Oil Public Company Ltd for the
construction of unloading facilities to supply oil to a refinery
in Sri Racha in the Gulf of Siam. Works will be performed in
2007, and the installation will be carried out by Castoro 8
vessel.</p>

<p>In the Leased FPSO area a contract for Petrobas for the
conversion of an oil tanker into the new Vitoria FPSO vessel with
a production capacity of 100,000 BBL/d and a storage capacity of
1,600,000 BBL for the development of the Golfinho 2 field
offshore Brazil at a depth of 1,400 meters.</p>

<p>In the Offshore drilling area two contracts were acquired. The
first one for Total Exploration and Production Angola, involving
the deep water drillship Saipem 10000 for activities to be
performed on the Rosa field for two years plus the option of a
further two years. The second one for Burrullus Gas Company
involves the renewal of contract for the semi-submersible
Scarabeo 6 for three months in Egypt.</p>

<p>In the Liquefied Natural Gas area two contracts were awarded:
(i) the first one, in association with Technip and Zachry, for
the engineering and procurement of tanks for an LNG
regassification terminal on the Quintana island in Texas; and
(ii) the second one, in consortium with the Mexican company
Gutsa, for the construction of infrastructure for the mooring and
dry-docking of tankers at the Costa Azul in Mexico.</p>

<p>In the Onshore construction area two turnkey contracts were
acquired: (i) the first one for Saudi Aramco to convert the
existing East-West pipeline from oil to gas transport. It
includes also fabrication, construction, installation and
commissioning of new sections of East-West line and related
facilities. Works will be performed in early 2008; and (ii) the
second one for Sonatrach-Sonelgaz for the engineering,
procurement and construction of a gas-fired power station. </p>

<p>In the Onshore drilling a contract for the North Caspian Sea
consortium for drilling activities in Block D of the Kashagan
field utilizing two drillings rigs owned by the client.
Activities will be performed for five years.</p>

<p>&nbsp;</p>

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

<p>OFFSHORE CONSTRUCTION<br>
Saipem is able to execute large projects for the development of
offshore hydrocarbon fields by integrating its technical and
operational skills, supported by a technologically advanced fleet
and the ability to operate in complex environments, with
engineering and project management capabilities acquired on the
market (among which Bouygues Offshore, Moss Maritime,
Petromarine, Idpe). The services that Saipem can currently
provide to its customers can cover the main market segments such
as: (i) floating production units (FPU); (ii) underwater
developments; (iii) fixed platforms; and (iv) pipelines.
Management expects the demand for these services to increase in
particular in the FPU and underwater development areas, due to
the increased share of deep water development projects. Key areas
are West Africa, Asia Pacific, and Latin America. </p>

<p>Saipem operates in the area of deep offshore hydrocarbon field
development by means of the construction and installation of
FPUs. Among FPUs, FPSO vessels offer the main interesting market
prospects due to their storage capacity, which allows to develop
fields remote from transport 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 underwater development in
the deep offshore, which includes laying of small diameter pipes,
umbilical lines, risers and other sub sea structures thanks to
the design ability of its engineering structures and the
installation capacity of its vessels. Saipem is also 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. Saipem is able
to execute the laying of large diameter long distance subsea
pipelines and transport infrastructure both in conventional and
deep offshore. </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 Saibos FDS for the development of
underwater fields in dynamic positioning, provided with cranes
lifting up to 600 tonnes and a system for j-lay pipe laying to a
depth of 2,000 meters; (iii) the Castoro 6 semi-submersible
vessel, capable of laying pipes in waters up to 1,000 meters
deep; (iv) the Saipem 3000 multifunction vessel for the
development of hydrocarbon fields, derived from the
transformation of the Maxita that can lay rigid and flexible
pipes and is provided with cranes capable of lifting over 2,000
tonnes; and (v) the Semac semisubmersible vessel used for large
diameter underwater pipe laying. The fleet includes also remotely
operated vehicles (ROV), highly sophisticated and advanced
underwater robots capable of performing complex interventions in
deep waters.</p>

<p>OFFSHORE DRILLING<br>
Saipem provides offshore drilling services to oil companies
mainly in key areas such as West Africa, the North Sea and the
Mediterranean Sea, it operates in the most complex segments of
deep and ultra deep offshore. Management expects demand for
offshore drilling services to increase steeply in the short to
medium-term according to the exploration plans announced by the
major oil companies. Management expects unit tariffs to be
supported by a shortage of supply. West Africa is confirmed as
one of the most attractive areas. Saipem can seize these market
opportunities by leveraging on the technical features of its
equipment. Its offshore drilling fleet consists of 10 vessels
properly equipped for its primary operations and some drilling
plants installed on board of fixed offshore platforms. 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 BBL 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 $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>

<p>LEASED/SALE FPSO<br>
Saipem provides to oil companies services for the development of
offshore hydrocarbon fields by leasing its FPSO vessels.
Following acquisitions carried out in recent years (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 and Latin America are the markets 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)&nbsp;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 adopting
the 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 project according to the client&#146;s portfolio of
fields. In this light, Saipem is building its new Vitoria unit
that will be operating on the Golfinho 2 field in the offshore of
Brazil.</p>

<p>ONSHORE CONSTRUCTION<br>
Saipem operates in the construction of plants for hydrocarbon
production (separation, stabilization, collection of
hydrocarbons, pumping stations, water injection) and treatment
(removal and recovery of sulphur dioxide and carbon dioxide,
fractioning of gaseous liquids, recovery of condensates) and in
the installation of large onshore transport 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 Africa
and the Middle East. Saipem also boasts a consolidated presence
in remote areas such as the Caspian Sea and Far East Russia,
leveraging on its ability in operating in hostile environments,
managing complex projects and enhancing local content, in
addition to providing on land services complementing offshore
activities (key factor in projects in areas such as the Caspian
Sea). Saipem intends to consolidate its competitive positioning
in the strategic segment of monetization of natural gas (GTL,
LNG) and upgrading of heavy crudes by upgrading and acquiring the
skills and resources necessary in the engineering and project
management phases, which are key factors in this segment
characterized by large EPC contracts. The acquisition of
Snamprogetti is a key step in this direction.</p>

<p>ONSHORE DRILLING<br>
Saipem operates in this area as main contractor for the major
international oil companies performing its activity mainly in
Saudi Arabia, North Africa and Peru, where it can leverage on its
knowledge of markets and integration with other business areas.
Saipem also boasts a long standing presence in remote areas (such
as the Caspian Sea) based on its operating skills and ability to
operate in hostile environments. Onshore drilling is conducted
through 23 drilling platforms and 15 workover plants that can
drill to 10,000-meter depths in high pressure and high
temperature environments.</p>

<p>LNG<br>
Saipem operates in the LNG segment following its purchase of
Bouygues Offshore and Moss Maritime which contributed their
experience in the LNG chain, complementary to the onshore and
offshore transport 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 in the design of gas
tanker ships. Saipem also intends to acquire skills and critical
mass in liquefaction; and (ii) the offshore segment, that
includes FSRU (Floating Storage Regasification Units) and FNLG
(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 segment.</p>

<p>MAINTENANCE, MODIFICATION &amp; OPERATION<br>
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.<br>
</p>

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

<p>Snamprogetti intends to consolidate its competitive
positioning in the market of high complexity onshore projects,
mainly in the strategic segments of oil and gas, natural gas
monetization (GTL, LNG) and ethylene. In order to attain this
objective, Snamprogetti intends to focus on the role of the main
contractor, leveraging on its skills in terms of project
management capabilities, a wide and integrated array of services
provided and availability and continuing development of
proprietary technologies.</p>

<p>Snamprogetti intends to expand the supply of qualified
services in the phases of front end loading of projects
(feasibility studies, conceptual, basic and front end engineering
and project management) mainly to major clients and as a support
to Eni&#146;s investment plans.</p>

<p>It plans also to intensify actions for improving operational
efficiency and flexibility also through the rationalization of
its operating structure, full utilization rates of low cost
engineering and fabrication 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 intends to continue enhancing its proprietary
portfolio of technologies by means of support activities to the
development on an industrial scale of technologies in strategic
areas, 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 monetization (GTL, syngas, methanol, ammonia,
urea).</p>

<p>In 2005, the engineering order backlog increased by euro 1,236
million due in particular to the recovery ongoing in reference
markets, in particular the following contracts were awarded: (i)
an EPIC contract for Abu Dhabi Gas Industries (GASCO) for the
construction of a single line plant with a treatment capacity of
24,400 tonnes/y of LNG at the Ruwais complex in the United Arab
Emirates. Works include also the construction of storage
facilities, new port infrastructure and the provision of
ancillary services; (ii) the Escravos GTL project in Nigeria, in
joint venture with U.S. company KBR for Chevron for the
construction of a 34,000 BBL/d plant for the production of diesel
fuel, naphtha and LPG; and (iii) the Hawiyah GTC project in Saudi
Arabia for Saudi Aramco for the construction of a natural gas
treatment and compression plant with a capacity of 31,000 BBL/d.</p>

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

<p>PLANTS<br>
<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
monetization (LNG; recovery and fractioning of natural gas
liquids). Based on the capital expenditure plans announced by oil
companies, Snamprogetti expects a 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 by means of acquiring and developing needed competence
in particular in the business of liquefaction. Significant
capital expenditures for expanding liquefaction and
regasification capacity of about 130 million tonnes/y of LNG
(equivalent to 180 BCM/y) 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 in the segment of 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
1,200 BBL/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). Snamprogetti plans to grow in
the strategic segment of conversion of natural gas to liquids
(GTL) for the manufacture of high value added products (LPG,
diesel fuel and virgin naphtha); in this segment, where syngas is
a critical element, Snamprogetti owns a proprietary technology
through its subsidiary Haldor Tops&#248;e. 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 world scale ethylene in particular in areas where feedstocks
have a low price (especially the Middle East). Snamprogetti
intends to seize this opportunity leveraging on its skills.</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>

<p>FIELD UPSTREAM FACILITIES AND PIPELINES<br>
Snamprogetti is engaged in the design and construction of
pipelines for the transport 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 monetization of reserves
located in remote areas (see: &quot;Innovative Technologies&quot;
below).</p>

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

<p>AQUATER - ENVIRONMENTAL ACTIVITIES<br>
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>

<p>CEPAV UNO AND CEPAV DUE<br>
Snamprogetti holds interests in the CEPAV Uno (50.36%) and CEPAV
Due (52%) consortia that in 1991 signed two contracts with TAV
SpA for the construction of 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 of the contract. In 2005, the consortium CEPAV Uno
requested a time extension for the completion of works and an
additional payment amounting to approximately euro 800 million.
CEPAV Uno and TAV failed to solve this dispute amicably, and on
April 27, 2006, CEPAV Uno notified TAV of a request for
arbitration, as provided under the terms of the contract.</p>

<p>At the end of 2005, CEPAV Uno Consortium had completed works
corresponding to 71% of the total contractual price in line with
the contractual obligations.</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
an Italian governmental authority (CIPE).</p>

<p>The final project was due to be examined by TAV for final
approval. CEPAV Due started an arbitration procedure against TAV
for the recognition of damage related to TAV&#146;s belated
completion of its tasks. A final decision is expected late in
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&#146;s other activities are organized 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%">the &quot;Other
        Activities&quot; aggregate of subsidiaries, including
        Syndial SpA (former EniChem), which manages certain
        decommissioning and reclamation activities relating to
        certain shut down industrial sites of Eni, and certain
        other Eni subsidiaries (such as, among others, Sieco,
        Tecnomare, EniTecnologie, Eni Corporate University and
        AGI) engaged in diversified activities (mainly services
        to Eni business segments, such as real estate services,
        general purposes services, corporate research, training);
        and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the &quot;Corporate and
        financial companies&quot;, including Eni Corporate and
        certain of Eni&#146;s subsidiaries engaged in treasury
        services, Eni Corporate is the department of parent
        company Eni SpA performing Group strategic planning,
        human resources management, finance, administration,
        information technology, legal affairs, international
        affairs and corporate research and development functions.
        Through Enifin SpA, Societ&#224; Finanziamenti
        Idrocarburi-Sofid SpA and Eni International BV, Eni
        carries out lending, factoring, leasing and insurance
        activities, principally on an intercompany basis.</td>
    </tr>
</table>

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

<blockquote>
    <p><b><i>Seasonality</i></b></p>
</blockquote>

<p><i>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.</i></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>In technological research and innovation activities Eni plans
to implement a capital expenditure programme in the 2006-2009
four year plan in order to develop such technologies that
management believes may ensure competitive advantages in the
long-term and promote sustainable growth. Eni plans to continue
developing existing programmes on clean fuels, sulphur and
greenhouse gas management as well as projects such as the
upgrading of heavy crudes (EST), high pressure gas transmission
(TAP) and Gas to Liquids (GTL).</p>

<p>In 2005, Eni&#146;s costs incurred for research and
development amounted to euro 204 million, of these 32% were
incurred by Eni&#146;s research department, 25% by the
Exploration &amp; Production segment, 24% by the Petrochemical
segment and 13% by the Refining &amp; Marketing segment. At
December 31, 2005, a total of 1,420 persons were employed in
research and development activities. In 2004, Eni&#146;s costs
incurred for research and development amounted to euro 257
million, of which 39% were incurred by Eni&#146;s research
department, 21% by the Exploration &amp; Production segment, 21%
by the Petrochemical segment and 12% by the Refining &amp;
Marketing segment. At December 31, 2004, approximately 1,470
persons were employed in research and development activities
(1,400 at December 31, 2003).</p>

<p>In the next four years Eni plans to invest approximately euro
1 billion, balancing resources between 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 the greenhouse
effect, through the capture and geological sequestration of
carbon dioxide.</p>

<p>Follows a description of Eni&#146;s key research and
development projects.</p>

<p>INNOVATIVE TECHNOLOGIES FOR SUBSOIL SURVEY<br>
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>In the area of seismic imaging, the further developments of
the proprietary &quot;3D Common Reflection Surface (CRS)
Stack&quot; technology found various industrial applications with
much higher efficiency than conventional techniques. New depth
imaging techniques based on proprietary algorithms can generate
depth images with such high resolution that they allow a very
precise physical characterization of reservoirs. A new 3D
resistivity modeling interpretive technique has been developed
for the petrophysical measurement of wells (electrical logs),
especially suited for the identification of complex
mineralization situations, such as thin strata of sand and clay.
Initial field applications proved that this new approach
contributes to the production of more accurate estimates of
reserves in place.</p>

<p>DRILLING OF &quot;ADVANCED WELLS&quot;<br>
Eni developed and applied at industrial level a series of
innovative 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 use of products for
mud and cement and the resulting waste by about 30-40%.</p>

<p>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
application underway 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>INNOVATIVE TECHNOLOGIES FOR THE TREATMENT OF LIQUIDS<br>
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>

<p>MANAGEMENT OF HYDROGEN SULFIDE AND SULFUR<br>
The Research &amp; Development 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>

<p>In 2006 the integrated research program called H<sub>2</sub>S
and sulphur management in Exploration &amp; Production operations
will be completed. The program was aimed at identifying
innovative solutions for the treatment of very sour gas. In
particular significant progress was achieved in an innovative
technology for H<sub>2</sub>S bulk removal and in a new system
for the massive storage of sulphur.</p>

<p>ENI SLURRY TECHNOLOGY<br>
EST is a process of catalytic hydroconversion in the slurry phase
that allows to convert asphaltenes (the hard fraction of heavy
crudes) totally, thus reducing to zero the production of solid
and fluid residues usually deriving from the refining of non
conventional oil.</p>

<p>It is a flexible technology that satisfies the needs of
upstream and downstream oil and can be adapted to various kinds
of feedstocks to be converted, to different capacities and
plants. Among its products are naphtha, kerosene, diesel fuel.</p>

<p>The development of this technology was started at the
beginning of the 80s and the decision to test it industrially
made possible in 2001 the building of a commercial demonstration
plant with a 1,200 BBL/d capacity at Eni&#146;s Taranto refinery
completed in 2005. It is currently being run for reaching the
validation of the technology.</p>

<p>This will provide Eni with an important competitive lever for
a more economic use of the full barrel of crude with lower
environmental impact.</p>

<p>NATURAL GAS TRANSPORT &#150; THE TAP PROJECT<br>
Among the reliable technologies for making the transmission via
pipeline of relevant amounts of natural gas from production areas
to consuming markets economically viable (gas to market), the TAP
(high pressure transport) project will contribute to developing
the most advanced long distance, high capacity, high pressure and
high grade solutions with relevant targets related to:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">(i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">distances over 3,000
        kilometers;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(ii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">natural gas volumes to be
        transported of about 20-30 BCM/y;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">pressure equal to or higher
        than 15 Mpa; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iv)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">use of high and very high
        grade steel (e.g. X100).</td>
    </tr>
</table>

<p>The TAP technology is expected to allow a decrease in the
consumption of natural gas used in compressor stations from 7.5%
to 3% of transported volumes.</p>

<p>The project was started in 2002 with a wide range of design,
engineering and construction activities and in 2005 two
infrastructures for the validation of its assumptions were
completed.</p>

<p>The first one is a 10-kilometer long pilot segment in X 80
steel with 48&quot; diameter from Enna to Montalbano integrated
in the Snam Rete Gas network that allowed to test and validate
the industrial application of the concepts.</p>

<p>The second infrastructure consists of two pilot pipes, with a
48-inch diameter in high resistance X100 steel installed in
Perdasdefogu in Sardinia. It was started up in September 2005
under pressures of 140 bar. Testing is expected to last 20 months
and will simulate the actual behavior of an industrial
infrastructure for a period equivalent to 20 years.</p>

<p>In 2006 management believes that the first technology manual
and FEED developed for a hypothetical trunkline in X100 steel
with a 48&quot; diameter linking Central Asia to Europe (for a
length of 3,500 kilometers) will be available. A further
development of this project will be the construction and
operation of a commercial line in X100 steel a few-kilometer
long.</p>

<p>CONVERSION OF GAS TO LIQUIDS &#150; GTL PROJECT<br>
This is a key technology for the use of natural gas on a large
scale for the production of high quality motor fuels, in
particular diesel fuel and therefore it receives special
attention by all majors due to its primary strategic value.</p>

<p>Eni&#146;s R&amp;D activities in 2005 led to the preparation
of the first basic design package for an industrial unit.</p>

<p>In 2006 Eni will continue its development activity at the
Sannazzaro pilot plant consolidating the Fischer-Tropsch
synthesis and optimizing its integration in the first two phases
in order to define the optimal size of the GTL module along with
its basic design package.</p>

<p>INNOVATIVE FUELS: CLEAN DIESEL FUEL PROGRAM<br>
In its effort to improve the quality of its fuels, in 2002 Eni
started to sell new virtually sulphur free (less than 10 ppm)
products (first BluDiesel and since 2004 BluSuper) anticipating
their compliance with EU regulations mandatory beginning in 2009.</p>

<p>With a longer term objective Eni started a clean diesel fuel
program that aims at identifying the optimal formula for a diesel
fuel with high performance and low particulate emissions using as
benchmark GTL Fischer-Tropsch gasoil.</p>

<p>ENVIRONMENTAL PROTECTION<br>
In the area of environmental protection, with the cooperation of
partners from industries and academia, Eni is developing
technologies for reducing the environmental impact of offshore
and onshore E&amp;P and refining operations.</p>

<p>In this area the following projects are worth mentioning:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><i>GHG Program</i> The
        integrated Green House Gases (GHG) research program aims
        at verifying the industrial feasibility of the geological
        sequestration of carbon dioxide in depleted fields and
        salty aquifers.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><i>The Early Warning
        Monitoring System (EWMS) project,</i> for real time
        recording of the physical and chemical profiles of
        Eni&#146;s productive activities and of their
        environmental context through a single computerized
        platform.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><i>The Hydrogen Project</i>
        aiming at developing a portfolio of technologies for
        producing hydrogen at competitive costs, also in medium
        to small sized plants.</td>
    </tr>
</table>

<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>

<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>Eni&#146;s operations, products and services are subject to
numerous EU, national, regional and local environmental laws and
regulations, including legislation that implements international
conventions or protocols. In particular, these laws and
regulations require that an environmental impact assessment is
performed for new operations, restrict the types, quantities and
concentration of various substances that can be released into the
environment, limit or prohibit 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 also restrict emissions
and discharges to surface and subsurface water resulting from the
operations and set the rules for 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 risks of environmental costs and
liabilities are 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)&nbsp;the possibility of as yet unknown
contamination of industrial sites; (ii) the results of the
ongoing 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 new environmental legislation and rules, such
as: (a)&nbsp;the decree of the Ministry of Environment No. 367
published on January 8, 2004, that regards the fixing of new
quality standards for aquatic environment and dangerous
substances and Legislative Decree No. 59/2005 concerning the
integrated environmental authorization (IPPC), (b) the
application of European directive 2004/35/EC concerning
environmental responsibility for prevention and reclamation of
environmental damage, referred to in paragraph 439 of the single
Article of Law No. 266/2005 (budget law for 2006), and (c) a
legislative decree to be issued in implementation of Law No. 308
of December 15, 2004 that delegated to the Government the
restructuring of regulations concerning waste disposal and
reclamation of polluted areas, protection of waters from
pollution and management of water resources, payment of
environmental damage, procedures for the evaluation of
environmental impact and for the strategic environmental impact
as well as protection from emission into the atmosphere within 18
months. The Decree n. 152/2006 was approved by the Council of
Ministers on February 10, 2006 has been in force since April 29,
and it is now under examination by the new Government. The decree
also implements European directive 2000/60/EC that established a
European action framework for the protection of waters; (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>A brief description of major environmental laws impacting on
Eni&#146;s activity follows.</p>

<p><i>Decree No. 471/1999</i> 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>The new Decree No. 152/2006, concerning the overall revision
of previous environmental laws, supercedes Decree 471/1999 and,
in particular, it envisages that risk assessment be performed in
order to define the extent of the required remediation. At this
early stage it is not possible to assess the impact of the new
law on Eni&#146;s activities, but it is expected that, in
general, the introduction of risk assessment could reduce the
extent of the remediation projects.</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 by
2008. All discharges require preventive authorization, to be
renewed every four years, and must lie below the thresholds set
by Regions. The Decree No. 152/2006 has also renovated the
previous water legislation, by aligning it to the less
restrictive EU water directive. To date Eni cannot evaluate the
possible impact of the application of the new law. 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 - Integrated
Pollution Prevention and Control), envisages that industrial
installations will apply for an integrated authorization
concerning emissions, wastes and water discharges. The calendar
for the request of the integrated authorization has recently been
defined. Many of Eni&#146;s plants &#150; refineries, chemical
plants, power stations &#150; will have to apply for the
authorization by the year end. All the Eni installations are
getting ready to request the IPPC authorization, which will have
a five year duration, in general, and eight 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 of the EU had to communicate their 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>On January 2006, EU Regulation No. 166 was issued concerning
the Pollutant Releases and Transfers Register (PRTR), which are
an extensions of the previous EPER registers and deals with all
the emissions and transfers of 91 pollutants to air, water and
soil. PRTR registers will be operational in the year 2009, with
respect to 2007 emissions. To comply with the obligations Eni is
considering the use of a group-wide Environmental Information
System. </p>

<p>For a description of the impact of Law No. 316 of December 30,
2004 (Emission trading) on Eni&#146;s business, see below in
&quot;Implementation of the Kyoto Protocol&quot;.<br>
</p>

<blockquote>
    <p><b><i>HSE Activity for the year</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
2005 business units continued implementing this management system
along with an audit program aiming at checking its functioning in
Eni&#146;s business segments and at identifying any measures for
its improvement. </p>

<p>In 2005, Eni&#146;s business units continued to obtain
certification of their management systems and operating units
according to the most stringent international standards. As of
December 31, 2005, the total number of certifications obtained
was 155 (133 in 2004), of which 82 certifications met ISO 14001
standard.</p>

<p><i>Environment</i> In 2005, Eni incurred a total expenditure
of euro 1,066 million for the protection of environment, up 33%
from 2004. Current environmental expenditure amounted to euro 690
million and related mainly to the intense program of site
remediation started in the past few years. Capitalized
environmental expenditure amounted to euro 375 million and
related mainly to water management and soil and subsoil
protection.</p>

<p><i>Safety</i> Eni is strongly committed to adopting a
preventive approach to safety in order to reduce the occurrence
of accidents and their consequences. Operations are managed with
a special focus on the safety of workers, contractors and local
communities. In line with international best practice, safety,
prevention and work hygiene include:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">(i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">identification of dangers,
        evaluation and reduction of risks related to the
        deployment of work activities;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(ii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">development and
        implementation of monitoring measures; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">investigation and analysis
        of accidents and near misses in order to learn from them
        and increase the ability to prevent and mitigate risks.</td>
    </tr>
</table>

<p>In 2005, expenditure for safety on the workplace amounted to
euro 391 million, 57% of which were for current expenditure with
the remaining part being capitalized. In 2005, the injury
frequency rate measured as the number of injuries per million
hours worked by Eni&#146;s employees was approximately 3.17,
declining from the 2004 level of 4.47.</p>

<p>Health Activities for the protection of health aim at
improving general work conditions and are developed according to
three main principles: (i) protection of employees&#146; health;
(ii) prevention of accidents and professional diseases; and (iii)
promotion of healthier behaviors and life styles in workplaces.</p>

<p>In 2005 approximately euro 40 million was invested in the
protection of health.</p>

<p>In Italy, health surveillance is performed in each operating
unit through a network of health centers and by means of medical
examinations, controls and monitoring campaigns for the major
physical, chemical and biological risk agents. The health of
employees outside Italy is protected likewise, in many cases
integrating the typical activities of medicine on the workplace
and first aid with the activities dedicated to primary health
care extended also to family members and in many cases also to
local communities.</p>

<p>Eni has a network of 339 own health care centers located in
its main operating areas, of these 241 centers are outside Italy
and are managed by local staff (322 doctors and 384 nurses). A
set of international agreements with the best local and
international health centers ensures efficient service and timely
reactions to emergencies.</p>

<p>In 2005 Eni boosted its E-medicine program aimed at increasing
the quality of health care provided to employees and to health
operators in Italy and outside Italy, that integrates
computerized technologies and advanced telecommunication systems.
The program includes three projects:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">(i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">health card, on line access
        to health data of employees by means of an electronic
        card provided first to groups of employees outside Italy,
        that will be progressively extended to all employees;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(ii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">telemedicine, a project
        oriented mainly to health care outside Italy, but open
        also to Italian industrial sites, based on contacts with
        highly qualified health centers worldwide and capable of
        providing real time consultation. This project is
        operating in Congo and Nigeria and in 2005 has been
        extended to four sites in Libya; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">e-learning, this project
        provides access to continuous training programs in the
        field of health to Eni&#146;s health operators in Italy
        and outside Italy by means of remote learning devices.</td>
    </tr>
</table>

<p>In Italy, Eni started a program of prevention, both through
information campaigns and by means of screening procedures and
direct actions accessed on a voluntary basis. The areas concerned
are:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">(i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">prevention of cancer;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(ii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">prevention of cardiovascular
        diseases; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">prevention of certain
        infective diseases.</td>
    </tr>
</table>

<p>Outside Italy, Eni promoted specific information campaigns for
the protection of its employees, their families and local
communities, such as those for the prevention of malaria (in
Nigeria and Azerbaijan) and the prevention of HIV transmission
(in Nigeria and Congo).<br>
</p>

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

<p>On February 16, 2005 the Kyoto Protocol entered into force and
with it the commitments of the Annex I Parties which have
ratified the protocol, including the EU and Italy. According to
Law No. 120/2002, Italy committed itself to reduce GHG 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 - Clean Development Mechanism) and in industrial countries
with transition economies (JI - Joint Implementation) in order to
obtain emissions credits and to purchase Assigned Amount Units
from other Annex I countries, that have a surplus of these Kyoto
units (IET - International Emission Trading).</p>

<p>Italy, as an EU Member State, is participating in the EU
Emission Trading Scheme, which established, on January 1, 2005
the largest carbon market in the world.</p>

<p>The National Action Plan for the reduction of greenhouse gas
emissions 2003-2010, sets out the allowances assigned to each
sector and installation. Eni has cooperated with the authorities
responsible for the preparation of the National Allocation Plan
and it is also active in the utilization of the Kyoto Flexible
Mechanisms. In fact, due 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 CDM and JI and contributing to the
sustainable development of host countries.</p>

<p><i>Law No. 316 of December 30, 2004</i> which converts Law
Decree No. 237/2004 has implemented European directive 2003/87/EC
which establishes a system for emission trading targeted to
industrial installations with high carbon dioxide emissions. From
January 1, 2005, this European emission trading scheme has been
in force and on this matter on February 24, 2006 the Ministry of
the Environment published a decree assigning the EU allowances
for the 2005-2007 period to each industrial installation included
in the scheme. In the first period of commitment, emissions not
covered by corresponding allowances are subject to a fine
amounting to euro 40/tonne of carbon dioxide. All companies are
expected to identify and carry out projects for emission
reduction. Eni participate to the ETS scheme with 61 plants in
Italy and two outside Italy, which collectively represent about a
third of all greenhouse gas emissions generated by Eni&#146;s
plants worldwide. Eni was assigned, for the existing
installations, allowances equal to 65.2 million tonnes of carbon
dioxide (of which 22.4 for 2005, 21.4 for 2006 and 21.4 for
2007). New EU allowances are expected for new entrants,
especially in power generation. In 2005, emissions of carbon
dioxide from Eni&#146;s plants were lower than permits entitled.</p>

<p>In order to play an active role in the ETS Eni:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">(i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">prepared a methodological
        and organizational protocol for the accounting of
        greenhouse gas emissions;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(ii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">implemented a database for a
        precise evaluation of emissions;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iii)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">evaluated the compliance of
        existing monitoring and reporting systems in plants in
        order to identify improvement requirements; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">(iv)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">defined a system for
        balancing emissions from individual plants and business
        units in order to guarantee the payback of emission
        rights due.</td>
    </tr>
</table>

<p>Eni is also upgrading its ongoing program for the reduction of
energy consumption and related CO<sub>2</sub> emissions.</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 Clean Development
Mechanism 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>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>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>

<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>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.<br>
</i></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.<br>
</p>

<p><b>Regulation of the Italian Hydrocarbons Industry</b></p>

<blockquote>
    <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 natural gas; (iv) the establishment of a system
for the updating of 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 the European Directive on Natural Gas 98/30/CE into
Italian legislation, regulates the Italian natural gas market.
Prior to the implementation of Decree No. 164, the Italian
natural gas market lacked a legislative framework. &quot;See
&#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. &quot;See
&#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.<br>
</p>

<blockquote>
    <p><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>

<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)&nbsp;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)&nbsp;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
(&quot;Stogit&quot;), which holds ten storage concessions.</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>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>On March 3, 2006, the Authority for Electricity and Gas with
Decision No. 50/2006 published the criteria for determining
storage tariffs for the second regulated period. This decision
changes the regulation in force in the first regulated period,
introducing maximum allowed revenues affecting the capacity
component (space and flow) and confirming the price cap mechanism
for the commodity component. It also establishes a single
national tariff. The decision confirms the mechanisms for the
evaluation of net capital employed already defined for the first
regulated period; the return on capital employed is reduced from
8.33% to 7.1% (pre-tax). Based on the new tariff regime and
keeping into account that all the capacity available in 2006 is
considered in the calculation of tariffs, revenues expected in
the thermal year from April 1, 2006 to March 31, 2007 amount to
about euro 280 million, decreasing 20% from the previous thermal
year. The decision contains also incentives to capital
expenditure for the development of storage by recognizing an
additional rate of return of 4% on the basic rate for 8 years for
capital expenditure increasing capacity and for 16 years for the
development of new storage sites. Decision No. 56 of March 16,
2006 approved Stogit&#146;s tariff proposals for 2006-2007
thermal year.</p>

<p>With Decision No. 119/2005, the Authority for Electricity and
Gas regulates ways for the supply of modulation, mineral and
strategic storage services on part of storage companies, as well
as the service for the operating balancing of transport companies
and provides a basic scheme for the preparation of
companies&#146; storage code.</p>

<p>By February 1 of each year, the storage company is to publish
on its internet site: (i) its plant operating and maintenance
program for the following thermal year (the thermal year for
storage starts on April 1 and ends on March 31 of the following
year); (ii) its upgrading and divestment plan as authorized by
the Ministry of Productive Activities; and (iii) storage capacity
available for each of the services provided.</p>

<p>As concerns the modulation and mineral storage services, in
its storage code the company defines a program for the injection
phase and the offtake phase, indicating the optimization criteria
and flexibility margins provided to users. The offtake phase
takes place between November 1 and March 31, the injection phase
between April 1 and October 31. The volumes of gas offtaken by
the user cannot be higher than the volumes injected or the
volumes the customer is entitled to.</p>

<p>The capacity destined to mineral and strategic storage is
determined by the Ministry for Productive Activities. As concerns
strategic storage, the company makes available the volumes of
natural gas in storage it owned resulting from its closing
balance at December 31, 2001. For any additional volumes that can
contribute to the reaching of the thresholds set by the Ministry,
the price is suggested by the storage company and set with a bid
procedure. The user can request only storage capacity and inject
own natural gas volumes.</p>

<p>Storage capacity is assigned by the storage company for
periods no longer than a thermal year by March 1, of each year.
The first requests to be met are those for strategic storage and
for the operating balancing of the system. The residual capacity
available and the maximum daily offtake capacity is assigned
according to the following order of priority to: (i) holders of
production concessions requesting mineral storage services; (ii)
entities deploying natural gas sale activities who are obliged to
provide modulation of their supply to their customers according
to Article 18, paragraphs 2 and 3 of Legislative Decree 164/2000,
for maximum volumes corresponding to a seasonal demand peak with
average temperatures, on the terms and conditions established by
a procedure to be issued by the Authority for Electricity and
Gas; (iii) to the entities mentioned in (ii) above only for those
additional maximum volumes related to a seasonal demand peak in
case of certain low temperatures measured on a 20 year period,
under the terms and conditions of the procedure mentioned in (ii)
above; and (iv) the entities requesting access for services
different from the ones mentioned above. A procedure to be issued
by the Authority for Electricity and Gas will establish the
criteria for assigning capacity when the requests mentioned in
(iv) above exceed availability.</p>

<p>During the storage thermal year, the company makes new
assignations when new capacity becomes available. Users are
allowed to sell to each other volumes of gas injected or capacity
assigned. Users are requested to transmit to the storage company
one week in advance of the next, programs for injection or
offtake, within the limit of assigned capacity, confirming each
day the bookings for the following day.</p>

<p>The Decision No. 50/2006 also regulates the charges for
balancing and replenishing storage for the first regulated
period, while for calculating the tariffs related to balancing
and replenishing in the second regulated period the Authority is
expected to publish a new decision.</p>

<p>If the user offtakes a peak daily amount higher than the
assigned amount, without replenishing by purchasing, the storage
company applies, for each month to the maximum difference between
peak daily capacity actually used and peak daily capacity
entitled, a variable charge depending on the volumes of gas in
storage on the day of the offtake and the number of days of
exceeding use.</p>

<p>If the volumes input to storage are higher than the capacity
assigned and the user does not purchase additional capacity or
sell excess natural gas volumes within 15 days from receiving
information on its position, the storage company will: (i) apply
to the maximum exceeding volume in a month a variable balancing
charge depending on the month of injection; and (ii) sell, on
behalf of the user that has not yet done it, the volume of gas
injected exceeding the assigned capacity in the day or days of
the thermal year of storage in which working gas reached its
maximum amount, if the transport company reduced the volumes
planned by users of transport at one or more interconnection
points at the border and the same transport users also hold
storage capacity.</p>

<p>If the volumes of gas offtaken by a user are higher than those
held in storage and the user fails to replenish by means of a
purchase, charges are applied that relate to replenishment of
offtake from strategic storage, which include: (i) in case of
offtakes allowed by the Ministry of Productive Activities, the
replenishment of the first volumes input to storage right after
the offtake and the payment by the user of a charge applied to
the maximum accumulated volume of offtaken gas, net of an income
proportional to volumes replenished, as determined by the
Authority, as well as the payment of balancing charges without
penalty; and (ii) in case of non authorized offtake, the income
recognized to the user for replenishment is reduced by a fixed
amount. Proceeds from the replenishment of strategic reserves are
subdivided proportionally among users in charge of strategic
storage services, except for the proceeds from the replenishment
of gas offtaken without authorization that are proportionally
distributed to all users. Proceeds to the storage company from
the application of balancing charges are proportionally
distributed to users.</p>

<p>With Decision No. 21 of January 31, 2006, the Authority for
Electricity and Gas increased these charges by different amounts
with respect to authorized and unauthorized offtakes. On the
basis of these provisions, Eni may incur material charges for
storage services in case of unauthorized offtakes from the
strategic reserve. Eni appealed against this decision.</p>

<p>With Decision No. 266/2005 the Authority for electricity and
gas started an inquiry leading to a possible administrative
sanction (fine under Law No. 481/1995) alleging that
Stogit&#146;s behavior does not conform with the discipline
contained in Decision No. 119/2005 concerning access to and
provision of storage services.</p>

<p><i>On the use of storage capacity conferred in 2004/2005 and
2005/2006</i> With Decision No. 37 of February 23, 2006, the
Authority for Electricity and Gas started an inquiry on a few
natural gas selling companies, among which Eni, with reference to
the use of storage capacity in years 2004-2005 and 2005-2006. For
the 2004-2005 thermal year and for the period from October 1,
2005 to December 31, 2005 the Authority for Electricity and Gas
deemed improper the use of modulation storage capacity. In fact
the Authority for Electricity and Gas judged offtakes to be
higher than the volumes considered necessary to satisfy the
requirements for which the storage company was awarded priority
given the weather of the period.</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, 2005 Eni held approximately 180 BCF of strategic
reserves of natural gas (180 BCF at year end 2004).<br>
</p>

<blockquote>
    <p><b><i>Gas &amp; Power</i></b></p>
    <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 and free to choose their supplier of natural
gas); (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%.
Compliance with these ceilings is verified annually by comparing
the allowed average percentage on a three year basis for volumes
input or sold to the average percentage obtained by each operator
in the same three year period. Allowed percentages are calculated
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; (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 have 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, has 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 2005 closes the second three year regulated
period for natural gas volumes input in the domestic transmission
network (for which the allowed average percentage is 71% of
domestic consumption of natural gas) and the first three year
regulated period for sales volumes (for which the allowed average
percentage is 50% of gas sales). Eni&#146;s presence on the
Italian market complied with said limit.</p>

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

<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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">Paragraph 51 cancels
        paragraph 5 of Article 16 of Legislative Decree No.
        164/2000, which obliged distribution companies to
        ascertain the safety 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="1%">&nbsp;</td>
        <td valign="top" width="97%">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) canceling 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>

<p><i>Law Decree No. 239/2003 </i>Law Decree No. 239/2003,
converted with amendments into Law No. 290/2003, 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. Law No. 266/2005
(budget law for 2006) extended this deadline from July 1, 2007 to
December 31, 2008. At December 31, 2005 Eni held a 50.05%
interest in Snam Rete Gas. 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 within the end of 2008.</p>

<p>On March 23, 2006 a Law Decree of the President of the Council
of Ministers defined criteria and modes for the divestment of the
interest held by Eni in Snam Rete Gas SpA, introducing 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 (&quot;golden share&quot;) in the by-laws of
this company.</p>

<p><i>Natural gas emergency procedure</i> On December 12, 2005,
the Minister of Productive Activities updated the emergency
procedure to cope with a natural gas shortage in the event of
unfavorable climatic events. In particular the new established
procedure set the following sequence of activities:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">an increase of gas
        availability (maximization of natural gas importation);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">activation of the
        interruption of customers with interruptible contracts;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">interruption of supplies to
        &quot;dual-fuel&quot; plants;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">further actions to reduce
        natural gas consumption of &quot;dual-fuel&quot; plants;
        and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">further initiatives to
        reduce natural gas consumption.</td>
    </tr>
</table>

<p>In order to manage the natural gas emergency during the
2005-2006 winter opened on December 19, 2005, the following
provisions were adopted:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Resolution No. 10/2006: the
        Authority introduced an auction mechanism to activate an
        interruption temporary system of the gas natural supply;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Ministerial Decree of
        January 24, 2006: the Ministry of Productive Activities
        reduced emissions limits to the power generation plant up
        till March 31, in favor of the use of oil; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Ministerial Decree of
        January 25, 2006: the Ministry of Productive Activities
        reduced from 1 to 28 of February the allowed limits of
        temperature in the residential buildings.</td>
    </tr>
</table>

<p>The Ministry of Productive Activities declared the end of the
emergency procedure on March 22, 2006.</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) under Law No. 481/1995
(establishing the Authority for Electricity and Gas) and
Legislative Decree No. 164/2000. 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>

<p>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)&nbsp;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 have to 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 and the
tariffs 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>With Decision No. 248 of December 29, 2004, the Authority for
Electricity and Gas 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 0.26 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 obliges Italian
suppliers to wholesalers to renegotiate supply contracts in light
of the price revision introduced by same decision in supply
contracts between wholesalers and end users. This decision also
states that the Authority may review these clauses in the light
of import contracts. Eni provided the Authority with the terms of
its import contracts that may lead the Authority to reconsider
its decision, as Eni is one of the largest importers to Italy.</p>

<p>In May-October 2005 the Regional Administrative Court of
Lombardy, based on claims of Eni and other operators, annulled
Decision No. 248/2004. In March 2006, the Council of State
annulled the decision of the Regional Administrative Court of
Lombardy in the case of a single operator and, at the same time,
postponed to the plenary meeting of the Council of State the case
of an association of natural gas wholesalers and local selling
companies, taking into account a possible procedural flaw.
Furthermore, the Council of State postponed its decision on the
appeal proposed by the Authority against the decision of the
Regional Administrative Court of Lombardy in favor of Eni after
the decision of the plenary meeting of the Council of State on
said procedural issues (expected to occur late in 2006).</p>

<p>In December 2005 the Authority for Electricity and Gas
implemented Decision No. 248 for the first quarter 2006 through
Decision No. 298/2005. The Regional Administrative Court of
Lombardia initially suspended Decision No. 298/2005 based on
claims of Eni and other operators. Then the same Court cancelled
the suspension it had initially granted. Therefore Decision No.
298/2005 is now fully effective. On March 28, 2006, the Authority
for Electricity and Gas issued Decision No. 63/2006 which updates
tariffs for the April-June 2006 quarter, in application of
Decision No. 248/2004. Eni appealed also this decision for the
reasons stated above.</p>

<p>Eni&#146;s management expects a negative outcome of this
matter. In fact Eni accrued a material provision in its 2005
Consolidated Financial Statements in order to reflect the risks
associated with this matter. In 2006 management expects
Eni&#146;s results of operation to be adversely impacted by a
material amount in light of the high Brent crude oil prices, in
the event Decision 248/2004 is implemented in its original form.
Actually Eni&#146;s results of operations for the first quarter
2006 were negatively affected by this matter. See &quot;Item 3
&#150; Risk Factors&quot; and &quot;Item 5 &#150; Results of
Operations and Recent Developments&quot;.</p>

<p>With Decision No. 65/2006, the Authority started a
consultation with operators to redefine mechanisms for the
updating of the raw material component in natural gas prices to
households and established provisions concerning partial
adjustments for final customers related to differences between
Decision No. 248/2004 and the previous Decision No. 195/2002.
Consistently with the appeal against Decision No. 248/2004, Eni
appealed also against Decision No. 65/2006 with the Regional
Administrative Court of Lombardia. The Authority, in the
consultation document published on May 17, 2006, proposed the
followings: (i) while confirming a quarterly basis mechanism for
the updating of the raw material component in natural gas price
formulas, with a five percentage points of invariance threshold
as provided for by Decision No. 195/2002, a monthly updating
mechanism is proposed for the recognition of purchase costs borne
by operators with an half percentage point invariance threshold;
(ii) the establishment of a compensatory fund which will
redistribute among operators the differences between natural gas
prices recognized to end customers and the raw material costs
incurred by operators; and (iii) the fixation of a range of
$35-60 per barrel of Brent crude oil to which selling companies
apply the 75% cap, limiting the ability to pass increases in the
purchase cost onto final customers. Beyond $60, increases in the
purchase cost are proposed to be transferred to end customers
with a 90-95% cap for a maximum two year transition period. In
addition the Authority confirmed the obligation of suppliers to
wholesalers to renegotiate supply contracts taking account of the
new price mechanism introduced by Decision No. 248/2004.
Management expects the proposed changes to partially mitigate the
impact of Decision No. 248/2004, as they do not enable Eni to
fully recover the purchase cost of natural gas in selling prices.</p>

<p><i>Inquiry of the Authority for Electricity and Gas on import
purchase prices </i>With Decision No. 107/2005 the Authority for
Electricity and Gas started a formal inquiry under Law No.
481/1995 against Eni and other gas importers alleging their
failure to comply with the Authority information requirements
contained in its Decision No. 188/2004 of October 27, 2004, by
which it required natural gas importers, among which Eni, to give
information concerning: (i) dates and supplier for each supply
contract for the import of natural gas; (ii) FOB purchase prices;
(iii) price updating formulas; and (iv) volumes supplied and FOB
purchase average prices on a monthly basis for each supplying
contract relating to the period October 2002-September 2004.
Under Law 481/1995, the Authority for Electricity and Gas can
impose a fine on Eni. Eni appealed this decision with the
Regional Administrative Court of Lombardia that on March 22, 2005
cancelled the obligation for Eni to communicate dates and
supplier for each contract and FOB purchase prices. Accordingly,
Eni initially gave the Authority for Electricity and Gas only
part of the information required. On April 6, 2006 a final
hearing was held in front of the Authority Eni confirmed its
position that it has provided adequate information, but with the
intention of full collaboration it provided the data concerning
average monthly fob prices for the October 2002-September 2004
period.</p>

<p><i>Inquiry of the Authority for Electricity and Gas on
behaviors of operators selling natural gas to end customers </i>With
Decision No. 225 of October 28, 2005, the Authority for
Electricity and Gas started an inquiry on the behaviors of
companies selling natural gas to end customers aimed at acquiring
new customers or re-acquiring customers transferred to other
sellers, with particular reference to hurdles posed by companies
to customers wishing to leave one distributor or to the entry of
competitors on the market. The inquiry aims at identifying any
measure the Authority should take in this area and is expected to
close before July 31, 2006.</p>

<blockquote>
    <p><i>Inquiries by the Italian and European Antitrust
    Authorities</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
BCM of natural gas in the four-thermal year period starting in
October 1, 2004 through September 30, 2008, corresponding to 2.3
BCM 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 had 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 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. In June 2006, the
appeal proposed by Eni before the Council of State against the
decision of the Regional Administrative Court was rejected. 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>Inquiry of the Authority on the upgrade of the TTPC
Pipeline - Appeal to the Regional Administrative Court for Lazio</i>
On February 15, 2006, the Antitrust Authority informed Eni of the
closing of an inquiry started in February 2005 to ascertain an
alleged abuse of dominant position. The events leading to the
opening of the procedure relate to behaviors 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 by TTPC with four shippers, who had been
assigned new transport capacity on TTPC&#146;s pipeline, due to
the non occurrence of certain suspensive clauses. Therefore TTPC
decided to not proceed to the planned upgrade of the pipeline by
2007.</p>

<p>In January 2006 Eni submitted to the Antitrust Authority a
proposal containing the actions it intends to perform in order to
favor competition on the Italian natural gas market and mitigate
the effects if its alleged abuse of dominant position, concerning
in particular the upgrade of the TTPC pipeline in Tunisia for the
import of natural gas to Italy from Algeria: 3.2 BCM/y from April
1, 2008 and further 3.3 BCM/y from October 1, 2008.</p>

<p>With a decision notified on February 15, 2006 the Antitrust
Authority stated that Eni&#146;s behavior through its subsidiary
TTPC represented an abuse of dominant position under Article 82
of the European Treaty. It therefore fined Eni. The original fine
amounted to euro 390 million and was reduced to euro 290 million
in consideration of Eni&#146;s commitment to perform actions
favoring competition as mentioned above. Eni appealed against
this decision with the Regional Administrative Court of Lazio.
The hearing is scheduled on July 12, 2006. See above &quot;Gas
&amp; Power &#150; Development Projects&quot;.</p>

<p><i>Eni SpA - GNL Italia SpA</i> On November 18, 2005 the
Antitrust Authority notified Eni and its subsidiary GNL Italia
the opening of an inquiry, in accordance with Article 14 of Law
No. 287/1990, concerning an alleged abuse of dominant position in
the assignment and use of the total continuous regasification
capacity of the Panigaglia terminal (owned by GNL Italia) in
thermal years 2002-2003 and 2003-2004, as evidenced by an inquiry
of the Authority for Electricity and Gas which referred Eni to
the Antitrust Authority. In a later communication the company was
informed that the inquiry has been extended also to thermal year
2004-2005 and to Snam Rete Gas which is the parent company of GNL
Italia SpA. The inquiry is due to be closed on October 31, 2006.</p>

<p><i>Inquiry of the European Commission</i> On May 5, 2006 the
European Commission started an inquiry in order to verify an
alleged abuse of dominant position on the part of Eni in
violation of Article 82 of the EEC Treaty and Article 54 of the
CES Agreement in the activities of international gas transport
and wholesale and retail supply of gas. </p>

<p>According to the European Commission Eni might have adopted
commercial practices that constitute barriers to access to the
Italian market for the wholesale supply of natural gas, in
particular taking account Eni long-term purchase contracts. In
addition Eni also entered long-term transport contracts which
award Eni a majority share of transport capacity of the certain
international gaslines and, as a consequence, Eni might have
prevented others to access infrastructure.</p>

<p>In addition according to the European Commission, Eni might
have delayed or annulled certain plans for the upgrading
international transport infrastructure, despite the significant
demand for access by third parties. This behavior would have
favored natural gas commercial supplies downstream of transport
activities thus allowing Eni to keep its dominant position in the
market of wholesale sales.</p>

<p>Lastly, based on information held by the Commission, Eni might
have subdivided the market with other companies operating in the
supply and/or transport of natural gas, in particular by limiting
the use of rights of access to entry and exit points of gas
pipelines, in particular TENP and TAG.</p>

<p>Officials from the European Commission conducted inspections
at headquarters of Eni and of certain Eni&#146;s subsidiaries and
collected documents.</p>

<p>If the existence of the alleged anti-competitive practices is
confirmed, the European Commission could fine Eni.</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, for the first regulatory period
made up of four thermal year (each thermal year begins on October
1 of each calendar year and ends on September 30), as provided
for by Decree No. 164/2000. Tariffs are subject to approval by
the same Authority, which ensures their compliance with preset
criteria. This tariff system substituted preceding agreements
between Eni and customers of any category. Within the first
quarter 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 was 7.94% (pre-tax), for the first regulatory period.
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)&nbsp;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. 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 incurred. In
addition, those capital expenditures give rise to a six year
fixed increase in allowed commodity revenues. At the end of the
first regulatory period, all transport cost components were
recalculated and 50% of higher cost reductions with respect to
established efficiency improvements were recognized to transport
companies and 50% were 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 17 zones) and on a charge for the capacity used at
regional level, providing for discounts to those outgoing the
network at less than 15 kilometers from the interconnection point
between regional and national networks. A further charge
(commodity charge) is related to the amounts of gas transported
plus an annual fixed charge varying according to the delivery
points. This tariff system regulated the four-thermal year period
starting October 1, 2001 and ending on September 30, 2005.</p>

<p>With the Decision No. 166/2005, the Authority for Electricity
and Gas revised the outlined tariff regime for the second
regulatory period (October 1, 2005-September 30, 2008). The new
tariff structure confirms the breakdown of the tariff into two
components: capacity and commodity in a ratio of 70 to 30 and the
entry-exit model for the determination of the capacity component
on the national pipeline network, already present in the previous
tariff regime established by Decision No. 120/2001. The major new
elements of the new regime are the following: (i) a reduction of
the rate of return of capital employed in transport activities
from 7.94% to 6.7% (pre-tax); (ii) a new set of incentives for
new capital expenditure. In the previous regime, the return on
upgrade and capacity expansion expenditure was 7.47% for one year
only included in the calculation of the capacity component of the
transport tariff and 4.98% for 6 years in the calculation of the
commodity component. The new tariff structure provides an
additional rate of return depending on the type of expenditure on
the return rate recognized for capital employed: from a minimum
of 1% for safety measures that do not increase transport
capacity, applied for 5 years, to a maximum of 3% for expenditure
that increases capacity at entry points into the national
network, applied for 15 years. The additional return is part of
the determination of the maximum allowed revenues in the
calculation of the capacity component of the tariff and therefore
is not influenced by changes in volumes transported; (iii) the
updating by means of a price cap mechanism of the allowed
revenues the transport undertaking is entitled to and the annual
recalculation of the portion of allowed revenues relating to
costs incurred for capital expenditure. This price cap mechanism
applies to operating costs and amortization charges (previously
it applied to all the allowed revenues). The annual rate of
recovery of productivity was confirmed at 2%; this is used to
reduce the effect of changes in the consumer price index on the
updating of the preceding year&#146;s allowed revenues; instead
the preset annual rate of change of productivity recovery for the
updating of the commodity component of the tariff was reduced
from 4.5% to 3.5% of; and (iv) confirmation of the tariff
reduction for start-ups (construction/upgrade of combined cycle
plants for electricity generation) and for off take in low season
periods (from May 1, to October 31) already contained in
Decisions No. 5/2005 and 6/2005 which updated the previous tariff
regime. The companies active in the field of gas transport submit
their tariff proposals to the Authority who grants approval,
within the first quarter of each calendar year.</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 entitlement of
transport capacity, obligations of transporter and customer and
the procedures through which customers can sell capacity to other
users. Transport capacity at entry points in the national gasline
network (point of interconnection with import gaslines) is
assigned on an annual basis and can last up to five thermal
years. Entities eligible to be assigned transport capacity on a
multi-year basis are those having multi-year import contracts
within the limit of their daily average contract volumes.
Priority criteria envisage that available capacity is assigned
first to parties in multi-year import contracts containing
take-or-pay clauses signed before August 10, 1998 (date of coming
in force of European Directive 98/30/CE). It requests for
capacity in a given thermal year are 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
multi-year import contracts are entitled to annual capacity
conferrals corresponding to maximum daily contract volumes and
the difference between maximum daily contract volumes and average
daily contract volumes, respectively. Available transport
capacity is assigned first to parties in annual import contracts
and parties in multi-year import contracts. If requests for
capacity in a given thermal are higher than available capacity, a
pro-rata mechanism is applied in compliance with the
aforementioned priority.</p>

<p>Eni filed a claim against this decision with the Regional
Administrative Court of Lombardia, that was partially accepted
with a decision of December 2004. The Authority filed a claim
against this decision with the Council of State and informed Eni
on February 19, 2005. This proceeding is still pending.</p>

<p><i>New tax criteria for the determination of amortizations for
companies operating in transport and distribution of natural gas</i>
The criteria for the determination of the annual share of
amortizations of natural gas transport and distribution assets
deductible in the determination of income taxes have been changed
starting in 2005 onwards by Law Decree No. 203 of September 30,
2005, converted into Law No. 248 of December 2, 2005 and Law No.
266 of December 23, 2005 (budget law for 2006). Due to these
changes, the share of amortizations that was previously
calculated based on rates set by a decree of the Minister of
Finance of December 31, 1988, is now determined by dividing the
relevant asset gross book value in accordance with the useful
lives determined by the Authority for Electricity and Gas and
reducing the amount obtained after tax by 20%. The alignment of
the fiscal lives of natural gas transport and distribution assets
to their useful lives entails the anticipation of the payment of
income taxes given the postponement of the deductibility of
amortization without impacting on net profit of companies
involved (mainly Snam Rete Gas and Italgas), except for the
financial charges related to this cash anticipation.</p>

<p><i>Regulation (EC) No. 1775/2005</i> On November 3, 2005
Regulation (EC) No. 1775/2005 concerning conditions for accessing
international natural gas transport networks was published. The
Regulation establishes non discriminatory access rules and will
be effective starting on July 1, 2006. The Regulation will be
directly applicable in each Member State and national regulatory
authorities will be responsible for its enactment.</p>

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

<p><i>Adoption of guarantees for free access to LNG
regasification services and rules for the regasification code</i>
With Decision No. 167 of August 1, 2005, the Authority for
Electricity and Gas published the criteria for access to LNG
regasification services. The Decision also defines criteria for
the allocation of regasification capacity. In particular it
establishes that take-or-pay contracts entered into before 1998,
as in the case of Eni, are assigned a priority access limited to
the minimum amount of volumes that have been regasified in the
period starting from thermal year 2001-2002. Eni filed a claim
against this decision with the Regional Administrative Court of
Lombardia.</p>

<p><i>Regasification tariffs </i>Tariffs for both the continuous
and spot regasification services are based on treated volumes of
LNG, number of discharges carried out and energy associated to
volumes input in the national transport network. Tariffs for the
spot service are 30% lower than those for continuous service.</p>

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

<p>Distribution is the activity of delivering natural gas to
residential and commercial customers of urban centers through low
pressure networks. Distribution is considered a public service
operated in concession and is regulated on the basis of Law
Decree No. 164/2000.</p>

<p><i>Distribution tariffs</i> 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).
With Decision No. 122 of June 21, 2005, the Authority integrated
and changed Decision No. 170/2004 defining a new determination
mechanism for distribution tariffs that takes account of capital
expenditure incurred by distributing companies.</p>

<p><i>Distribution network code</i> With Decision No. 138/2004
the Authority for Electricity and Gas defined a set of rules to
ensure free access to the distribution networks and neutrality of
the distribution service, as well as criteria for the definition
of distribution network codes.</p>

<p>With Decision No. 108/2006 the Authority for Electricity and
Gas approved the Gas Distribution Master Code which will be used
as a standard contract between distribution companies and
shippers (natural gas selling companies). Within three months
from its publication, distribution companies are due to issue
their own gas distribution code adopting either the Gas
Distribution Master Code or the scheme provided for by the
Decision No. 138/2004.<br>
</p>

<blockquote>
    <p><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.
Management expects no material delays in obtaining relevant
concessions for the upgrading of the Sannazzaro and Taranto
refineries as planned in the medium term.</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. To date, this regulation has had no 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 basis.</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.</p>

<p>At December 31, 2005 Eni owned 7.2 million tonnes of oil
products inventories, of which 4.8 million tonnes as
&quot;compulsory stocks&quot;, 1.0 million tonnes related to
operating inventories in refineries and depots (including 0.2
million tonnes of oil products contained in facilities and
pipelines), 1.1 million tonnes related to oil products contained
in ships and 0.3 million tonnes related to specialty products.</p>

<p>Eni&#146;s compulsory stocks (at December 31, 2005) were held
in term of crude oil (27%), light and medium distillates (44%),
fuel oil (22%) and other products (7%) and they were located
throughout the Italian territory both in refineries (75%) and in
storage sites (25%).</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>Eni SpA is the parent company of the Eni group companies. As
of December 31, 2005, there were 257 fully consolidated
subsidiaries, 94 subsidiaries accounted for under either the
equity method or the cost method and 176 affiliates accounted for
under either the equity method or the cost method. The
significant subsidiaries, associated undertakings and joint
ventures of the Eni Group controlled directly or indirectly by
Eni at December 31, 2005 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>

<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 align="right" valign="top" width="6%"><b><u>%</u></b></td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Exploration &amp;
        Production</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Oil Algeria Ltd</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Angola Exploration BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Caspian Sea BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Congo SA</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Daci&#243;n BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Lasmo Sanga Sanga Ltd</td>
        <td valign="top" width="24%">Bermuda</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Iran BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Karachaganak BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Lasmo Plc</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni LNS Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni North Africa BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Oil Ecuador BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Petroleum Co Inc</td>
        <td valign="top" width="24%">USA</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni UK Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Ieoc Production BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">NAOC Nigerian Agip Oil Co
        Ltd</td>
        <td valign="top" width="24%">Nigeria</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Norge A/S</td>
        <td valign="top" width="24%">Norway</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" valign="top" width="6%">50</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Italiana per il Gas
        pA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Distribuidora de Gas Cuyana
        SA</td>
        <td valign="top" width="24%">Argentina</td>
        <td align="right" valign="top" width="6%">46</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Gas Brasiliano Distribuidora
        SA</td>
        <td valign="top" width="24%">Brazil</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Greenstream BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td align="right" valign="top" width="6%">75</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Inversora de Gas Cuyana SA</td>
        <td valign="top" width="24%">Argentina</td>
        <td align="right" valign="top" width="6%">76</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 align="right" valign="top" width="6%">50</td>
    </tr>
    <tr>
        <td valign="top" width="70%">EniPower SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">AgipFuel SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Ecofuel SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Portugal Investment SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Deutschland GmbH</td>
        <td valign="top" width="24%">Germany</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Espa&#241;a SA</td>
        <td valign="top" width="24%">Spain</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Fran&#231;aise SA</td>
        <td valign="top" width="24%">France</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">American Agip Co Inc</td>
        <td valign="top" width="24%">USA</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Dunastyr Polystyrene
        Manufacturing Co Ltd</td>
        <td valign="top" width="24%">Hungary</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa Benelux SA</td>
        <td valign="top" width="24%">Belgium</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa Elastom&#232;res
        France SA</td>
        <td valign="top" width="24%">France</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa UK Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Saipem SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">43</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Snamprogetti SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</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 align="right" valign="top" width="6%">50</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Saipem SA</td>
        <td valign="top" width="24%">France</td>
        <td align="right" valign="top" width="6%">43</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">EniTecnologie SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Sieco SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</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 align="right" valign="top" width="6%">57</td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Coordination Center SA</td>
        <td valign="top" width="24%">Belgium</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Finanziaria Eni SpA
        - Enifin</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Finanziamenti
        Idrocarburi - Sofid-SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td align="right" valign="top" width="6%">100</td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item4A">Table of Contents</a></h5>

<p>&nbsp;</p>

<p><font size="4"><b>Item 4A. UNRESOLVED STAFF COMMENTS</b></font></p>

<p>None.</p>

<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>

<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>

<p><b>Executive Summary</b></p>

<p>Eni recorded a net profit of euro 8.8 billion in 2005, an
increase of 24.5% over 2004. Operating profit in 2005 amounted to
euro 16.8 billion, up 35.7% from 2004 reflecting volume growth
and performance improvements in Eni&#146;s main businesses
combined with a favorable trading environment characterized by
strong gains both in crude oil prices and in refining margins.</p>

<p>On the basis of the results achieved, Eni&#146;s management
proposed at the Annual General Shareholder Meeting a dividend of
euro 1.1 per share, of which euro 0.45 was already paid as an
interim dividend in October 2005. This dividend is 22% higher
than in 2004 (euro 0.90 per share) and was approved by the Annual
General Shareholder Meeting on May 25, 2006.</p>

<p>In Exploration &amp; Production, Eni continued to build on its
established position in some of the world&#146;s fastest-growing
producing nations of oil and natural gas. Eni&#146;s daily
production of oil and natural gas available for sale increased by
6.7% over 2004 to 1,693 KBOE. Net proved reserves of oil and
natural gas were 6,837 mmBOE at year end 2005 (55% crude and
condensates), down 381 mmBOE from 2004 due principally to an
adverse entitlement impact in certain production sharing
agreements and buy-back contracts as a result of higher oil
prices which reduced Eni&#146;s entitlement to volumes of oil and
natural gas to recover costs incurred by Eni for the development
of certain oil fields. The reserve replacement ratio was 40%. The
reserves life index at year end 2005 was 10.8 years (12.1 years
at December 31, 2004).</p>

<p>Eni increased its interest in the Kashagan project
(Kazakhstan) from 16.67% to 18.52%. Management believes Kashagan
to be a very important project for the future growth of
Eni&#146;s production of oil and natural gas. The development of
the project, of which Eni is the sole operator, is on track, with
40% of work completed, and management plans to achieve first oil
production by end-2008. Management is currently reviewing the
planned $29 billion capital expenditure for the development of
this large field in order to take account of changing market
conditions.</p>

<p>Eni added to its exploration portfolio with the acquisition of
assets in areas such as Libya, Nigeria and Angola where
Eni&#146;s presence is already established, and in new basins
such as Alaska and India.</p>

<p>In Gas &amp; Power, Eni continued to leverage on its assets
consisting of access to infrastructure, availability of gas
&#150; both from owned facilities and from long term purchase
contracts &#150; and large customer base, to increase natural gas
sales in European gas markets.</p>

<p>Overall gas sales in 2005 totalled 91.15 BCM, up 8.8% from
2004. This growth has been driven by European gas sales and by
larger volumes sold in Italy:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">gas sales across Europe
        (31.29 BCM) rose 11.2% as compared to 2004, driven also
        by the build up of the Greenstream project; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">Italian gas sales (58.01
        BCM, including own consumption) increased by 8% from
        2004, mainly driven by gas consumption in our power
        business, and gas sales in South America were stable at 2
        BCM.</td>
    </tr>
</table>

<p>Electricity sales (22.8 TWh) increased by 64% in volume terms
from 2004 as a result of the start-up of two power units at the
Mantova power plant and the first unit of the Brindisi plant, as
well as full commercial operation at the Ravenna and Ferrera
Erbognone plants.</p>

<p>In Refining &amp; Marketing, Eni is seeking to increase return
from assets by upgrading its refining system, increasing
integration with Exploration &amp; Production activities and
strengthening its competitive position in marketing.</p>

<p>In 2005, Eni completed the construction of the Sannazzaro
gasification plant and the disposal of its wholly-owned
subsidiary Italiana Petroli which operates in the retail market
in Italy. Overall retail sales in Europe under the Agip brand in
2005 amounted to 16 billion liters, of which 11.3 billion liters
were in Italy. Retail sales increased 0.6% from 2004 reflecting
higher sales in certain markets of Central Europe and in Spain.</p>

<p>In Engineering &amp; Construction, Saipem was awarded
important contracts in complex environments such as Kashagan in
Kazakhstan and Sakhalin in Russia. Snamprogetti significantly
increased its backlog, closing 2005 with strong financial
results.</p>

<p>Capital expenditure totalled 7.4 billion in 2005, in line with
2004; 91% of capital expenditure was carried out in oil and gas
activities. The principal projects for the year were:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">development of oil and
        natural gas reserves (euro 3.95 billion), mainly in
        Kazakhstan, Libya, Angola, Egypt and Italy, as well as
        exploration (euro 656 million) and the acquisition of
        proved and unproved property reserves (euro 301 million,
        of which euro 161 million was for the acquisition of an
        additional 1.85% share in the consortium developing
        Kashagan);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">expansion and improvements
        of the natural gas transportation and distribution
        network in Italy (euro 825 million);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">ongoing power generation
        construction programme (euro 239 million); and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">upgrading of our Italian
        refining and logistics system to enhance flexibility and
        increase the yields of light products and middle
        distillates, including completion of the heavy residue
        gasification plant at the Sannazzaro refinery and
        improvement of the retail distribution network both in
        Italy and in the rest of Europe (euro 656 million).</td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Margin</i></b><a href="#(10)"><sup>10</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.<br>
</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="76%">&nbsp;</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>
        <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" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">Average price of Brent dated crude oil <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">28.84</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">38.22</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">54.38</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">Average
        price in euro of Brent dated crude oil <sup>(2)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">25.50</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">30.72</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">43.71</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">Average EUR/USD exchange rate <sup>(3)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.131</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.244</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.244</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">Average
        European refining margin <sup>(4)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.65</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4.35</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.78</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">EURIBOR &#150; three month euro rate % <sup>(3)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.3</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.2</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

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

<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 U.S.
        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&#146;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 U.S.
        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 2005 with prices of Brent crude oil
increasing by approximately 42% compared to 2004. Natural gas
demand in Italy increased by approximately seven percentage
points over 2004 driven by strong growth in the electricity
generation. Natural gas margins in Italy decreased in 2005 as
compared to 2004 due to competitive pressure in the domestic
natural gas market, offset in part by favorable trends in prices
of certain refined products to which natural gas sale and
purchase prices are contractually indexed resulting in a higher
increase of selling prices as compared to supply costs when
comparing 2005 to 2004. In 2005, refining margins increased
sharply due to strong demand for refined products, especially in
Asia, a shortage of fuels meeting required European
specifications due to lags in the upgrading certain refineries
and imbalances in the availability of products in different areas
of the world. Petrochemical product margins declined in 2005 as
compared to 2004, essentially due to the higher cost of oil-based
feedstocks not being completely reflected in to selling prices.<br>
</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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" align="left" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">57,545</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">73,728</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Operating
        profit</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 align="right" valign="bottom" width="7%"><font
        size="2">12,399</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">16,827</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Net profit</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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,059</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,788</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Net cash
        provided by operating activities </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 align="right" valign="bottom" width="7%"><font
        size="2">12,500</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">14,936</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditure</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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,499</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,414</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Investments</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 align="right" valign="bottom" width="7%"><font
        size="2">316</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">146</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Shareholders&#146; equity including minority
        interest</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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">35,540</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">39,217</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Net
        borrowings <sup>(1)</sup></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 align="right" valign="bottom" width="7%"><font
        size="2">10,443</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10,475</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Net profit per share </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="1">(euro per share)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.87</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.34</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Dividend
        per share </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="1">(euro per share)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">0.90</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1.10</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings to total shareholders&#146;
        equity ratio including minority interests (leverage) <sup>(1)</sup></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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.36</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">0.33</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%">&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%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

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

<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">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>

<blockquote>
    <p><b><i>The adoption of IFRS</i></b></p>
</blockquote>

<p>The Consolidated Financial Statements of Eni have been
prepared in accordance with IFRS issued by the International
Accounting Standards Board (IASB) and adopted by the European
Commission following the procedure contained in Article 6 of the
EC Regulation No. 1606/2002 of the European Parliament and
Council of July 19, 2002. The IFRS adopted by Eni differ in
certain limited respects from the IFRS sanctioned by the IASB.
Until December 31, 2004, Eni prepared its Consolidated Financial
Statements and other interim financial information (including
quarterly and semi-annual data) in accordance with Italian GAAP.
IFRS require adopting companies to restate only one year of past
financial statements. Pursuant to SEC Release 33-8567,
&quot;First-time Application of International Financial Reporting
Standards&quot;, Eni is not required to include in this annual
report financial statements for any earlier periods. Accordingly
this annual report includes financial information prepared in
accordance with IFRS as of and for the two years ended December
31, 2004 and 2005. For hydrocarbon exploration and production,
accounting policies generally applied by the oil industry have
been adopted, with particular reference to amortization according
to the Unit-Of-Production (UOP) method, buy-back contracts and
Production Sharing Agreements. The Consolidated Financial
Statements have been prepared by applying the cost method except
for items that under IFRS must be recognized at fair value as
described in the Notes to the Consolidated Financial Statements
under the heading &quot;Evaluation Criteria&quot;.</p>

<p>The general principle that should be applied on first-time
adoption of IFRS is that standards in force at the transition
date (January 1, 2004) should be applied retrospectively.
However, IFRS 1 &quot;First-time Adoption of International
Financial Reporting Standards&quot; (IFRS 1) contains a number of
exemptions that companies are permitted to apply. Eni has taken
the following main exemptions:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">no retroactive restatement
        of business combinations that occurred before January 1,
        2004. As a result of this exemption, goodwill was not
        restated to take into account amortization charges
        recorded in previous periods before the adoption of IFRS;
        and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149; </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the election of 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. As permitted under
        IFRS 1, Eni has not restated comparative information. In
        the Consolidated Financial Statements for the year ended
        December 31, 2005 the impact of recording certain
        derivative financial instruments at fair value, as is
        required by IAS 39, was a euro 386 million charge in the
        profit and loss account. For further information see
        &quot;Consolidated Financial Statements &#150; Effects of
        the adoption of IFRS and Evaluation Criteria&quot;.</td>
    </tr>
</table>

<p>The IFRS under which Eni&#146;s Consolidated Financial
Statements have been prepared differ in certain limited respects
from the IFRS adopted by the IASB, the effect of such differences
on the Consolidated Financial Statements is not material.</p>

<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 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. Key
areas where estimates are applied include the determination of
oil and gas proved reserves and proved developed reserves,
accounting for exploratory drilling costs under U.S. GAAP,
impairment of fixed assets, intangible assets and goodwill, asset
retirement obligations, business combinations, recognition of
environmental liabilities and recognition of revenues in the
oilfield services construction and engineering businesses. 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 future results.<br>
</p>

<blockquote>
    <p><b><i>Oil and Gas Activities</i></b></p>
</blockquote>

<p>Engineering estimates of the Company&#146;s oil and gas
reserves are inherently uncertain. 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. Although 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;, the accuracy of any reserve
estimate is a function of the quality of available data and
engineering and geological interpretation and judgment.</p>

<p>Reserves in a field will only be categorized as proved when
all the criteria for attribution of proved status have been met,
including an internally imposed requirement for project sanction
that occurs when a final investment decision is made. At the
point of sanction, all booked reserves will be categorized as
proved undeveloped. Volumes will subsequently be recategorized
from proved undeveloped to proved developed as a consequence of
development activity. The first proved developed bookings will
occur at the point of first oil or gas production. Major
development projects typically take one to four years from the
time of initial booking to the start of production. Adjustments
may be made to booked reserves due to production, reservoir
performance, commercial factors, acquisition and divestment
activity and additional reservoir development activity.</p>

<p>Eni reassesses its estimate of proved reserves on an annual
basis. The estimated proved reserves of oil and natural gas may
be subject to future revision and upward and downward revision
may be made to the initial booking of reserves due to production,
reservoir performance, commercial factors, acquisition and
divestment activity and additional reservoir development
activity. In particular, changes in oil and natural gas prices
could impact the amount of Eni&#146;s proved reserves as regards
the initial estimate and, in the case of Production Sharing
Agreements and buy-back contracts, the share of production and
reserves Eni is entitled to. Accordingly, the estimated reserves
could be materially different from the quantities of oil and
natural gas that ultimately will be recovered.</p>

<p>Oil and natural gas reserves have a direct impact on certain
amounts reported in the financial statements. 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. 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. Also,
estimated proved reserves are used to calculate future cash flows
from oil and gas 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. See &quot;Item 3 &#150; Risk
Factors &#150; Uncertainties in Estimates of Oil and Natural Gas
Reserves&quot;.<br>
</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 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) 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.
Determination of whether an exploratory well should remain
capitalized after completion of drilling requires a high degree
of judgment 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. The
company evaluates the progress made on the basis of regular
project reviews which take account of the following factors: (i)
costs are being incurred to assess the reserves and their
potential development; (ii)&nbsp;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. As of
December 31, 2005, an amount of euro 403 million remain
capitalized relating to approximately 30 exploratory wells for
which drilling activities have been completed for more than one
year, of this capitalized amount euro 59 million (or 8 wells)
relates to projects progressing towards completion of development
activities, and the remaining euro 344 million (or 22 wells)
relates to projects for which additional exploratory activity is
underway or firmly planned. See Note 35 to the Consolidated
Financial Statements.<br>
</p>

<blockquote>
    <p><b><i>Impairment of Assets</i></b></p>
</blockquote>

<p>Eni assesses its fixed assets and intangible assets, including
goodwill, for possible impairment if there are events or changes
in circumstances that indicate the carrying values of the assets
are not recoverable. Such indicators include changes in the
Group&#146;s business plans, changes in commodity prices leading
to unprofitable performance and, for oil and gas properties,
significant downward revisions of estimated proved reserve
quantities. Determination as to whether and how much an asset is
impaired involves management estimates on highly uncertain
matters such as future commodity prices, the effects of inflation
and technology improvements on operating expenses, production
profiles and the outlook for global or regional market
supply-and-demand conditions for crude oil, natural gas,
commodity chemicals and refined products.</p>

<p>Technically, the amount of an impairment charge is determined
by comparing the book value of an asset with its recoverable
amount. The recoverable amount is the greater of fair value net
of disposal costs and value in use. The estimated value in use is
usually 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 and are discounted by using a rate related to
the activity involved.</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, 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>Under both IFRS and U.S. GAAP, goodwill is not amortized but,
like indefinitive lived intangible assets, is tested for
impairment at least annually. Under IFRS the assessment of
goodwill impairment is based on the determination of the fair
value of each cash generating units to which goodwill can be
attributed on a reasonable and consistent basis. A cash
generating unit is a group of assets that generates cash inflows
that are largely independent of the cash inflows from other
groups of assets. If the fair value of a cash generating unit is
lower than the carrying amount, goodwill attributed to that cash
generating unit is impaired up to that difference, if the
carrying amount of goodwill is less than the amount of
impairment, assets of the generating unit are impaired on a
pro-rata basis for the residual difference.<br>
</p>

<blockquote>
    <p><b><i>Asset Retirement Obligations</i></b></p>
</blockquote>

<p>Obligations related to the removal of tangible equipment and
to the restoration of land or seabeds require significant
estimates in calculating the amount of the obligation and
determining the amount required to be recorded in the
Consolidated Financial Statements. Estimating the future asset
removal costs is difficult and requires management to make
estimates and judgments because most of the removal obligations
are many years into the future and contracts and regulations are
often unclear as to what constitutes removal. Asset removal
technologies and costs are constantly changing, as well as
political, environmental, safety and public relations
considerations. The subjectivity of these estimates is also
increased by the accounting method used that 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
liabilities are initially recorded, the related fixed assets are
increased by an equal corresponding amount. The liabilities are
increased with the passage of time (interest accretion) and any
change of the estimates following the modification of the future
cash flows and the discount rate adopted. The recognized asset
retirement obligations are based upon future retirement cost
estimates and incorporate many assumptions such as expected
recoverable quantities of crude oil and natural gas, time to
abandonment, future inflation rates and the risk-free rate of
interest adjusted for the Company&#146;s credit costs.<br>
</p>

<blockquote>
    <p><b><i>Business Combinations</i></b></p>
</blockquote>

<p>Accounting for the acquisition of a business requires the
allocation of the purchase price to the various assets and
liabilities of the acquired business at fair value. Any positive
residual difference is recognized as &quot;Goodwill&quot;.
Negative residual differences are charged against profit and loss
account. Management uses all available information to make these
fair value determinations and, for major business acquisitions,
typically engages an outside appraisal firm to assist in the fair
value determination of the acquired long-lived assets.<br>
</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. Environmental costs are recognized when it becomes
probable 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 on
Eni&#146;s consolidated results of operations and financial
position as a result of such laws and regulations, there can be
no assurance that there will not be a material adverse impact on
Eni&#146;s consolidated results of operations and financial
position due to: (i)&nbsp;the possibility of as yet unknown
contamination; (ii)&nbsp;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)&nbsp;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 and those that may derive
from the legislative decree that the Italian Government will have
to enact in order to implement Directive 2000/60/EC 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)&nbsp;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.<br>
</p>

<blockquote>
    <p><b><i>Employees post-retirement benefits</i></b></p>
</blockquote>

<p>Employees benefits (such as pension payments, life insurance
payments, medical assistance after retirement, etc.) are
evaluated with reference to uncertain events and based upon
actuarial assumptions including among others discount rates,
expected rates of return on any plan assets, expected rates of
salary increases, medical cost trend rates, estimated retirement
dates, mortality rates. These assumptions are reviewed annually
and may change from year to year impacting future results of
operations. </p>

<p>The significant assumptions used to account for pensions and
other post-retirement benefits are determined as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">discount and inflation rates
        reflect the rates at which the benefits could be
        effectively settled, taking into account the duration o f
        the obligation. Indications used in selecting the
        discount rate include rates of annuity contracts and
        rates of return on high-quality fixed-income investments
        (such as government bonds). The inflation rates reflect
        market conditions observed country by country;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">salary increase assumptions
        (when relevant) are determined by each entity. They
        reflect an estimate of the actual future salary levels of
        the individual employees involved, including future
        changes attributed to general price levels (consistent
        with inflation rate assumptions), productivity,
        seniority, promotion and other factors;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">healthcare cost trend
        assumptions (when relevant) reflect an estimate of the
        actual future changes in the cost of the healthcare
        related benefits provided to the plan participants and
        are based on past and current healthcare cost trends
        including healthcare inflation, changes in healthcare
        utilization, and changes in health status of the
        participants;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">demographic assumptions such
        as mortality, disability and turnover reflect the best
        estimate of these future events for the individual
        employees involved, based principally on available
        actuarial data; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">determination of expected
        rates of return on assets is made through compound
        averaging. For each plan, there are taken into account
        the distribution of investments among bonds, equities and
        cash and the expected rates of return on bonds, equities
        and cash. A weighted-average rate is then calculated.</td>
    </tr>
</table>

<p>Differences between projected and actual costs and between the
projected return and the actual return on plan assets routinely
occur and are called actuarial gains and losses. </p>

<p>The unrecognized actuarial losses of pension benefits as at
December 31, 2005 were euro 144 million compared to euro 41
million in 2004. The euro 103 million increase from 2004
reflected primarily changes in assumptions used to account for
pensions and other post-retirement benefits mainly related to the
decrease in discount rates (4.0% in 2005 compared with 4.5% in
2004). Pension accounting principles require that such actuarial
losses be deferred and amortized over future periods. Eni applies
the corridor method to amortize its actuarial losses and gains.
This method amortizes the net cumulative actuarial gains and
losses that exceed 10% of the greater of (i) the present value of
the defined benefit obligation and (ii) the fair value of plan
assets, over the average expected remaining working lives of the
employees participating in the plan.</p>

<p>In 2005, Eni recognized a charge of euro 126 million (euro 118
million in 2004) in the profit and loss account in connection
with its obligations for employee post-retirement benefits.</p>

<p>See Note 20 of the Consolidated Financial Statements for
further information about employees post-retirement benefits.<br>
</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 contingencies that are both probable and estimable. These
other contingencies are primarily related to employee benefits,
litigation and tax issues. Determining appropriate amounts for
accrual is a complex estimation process that includes subjective
judgments.<br>
</p>

<blockquote>
    <p><b><i>Revenue recognition in the Oilfield Services,
    Construction and Engineering segment</i></b></p>
</blockquote>

<p>Revenue recognition in the Oilfield Services, Construction and
Engineering business segment is based on the stage of completion
of a contract as measured on the cost-to-cost basis applied to
contractual revenues. Use of the stage of completion method
requires estimates of future gross profit on a contract by
contract basis. The future gross profit represents the profit
remaining after deducing costs attributable to the contract from
revenues provided for in the contract. The estimate of future
gross profit is based on a complex estimation process, that
includes identification of risks related to the geographical
region, market condition in that region and any assessment that
it is necessary to estimate with sufficient precision the total
future costs as well as the expected timetable. Variation in the
scope of the work, are included in the total amount of revenues
when it is probable that the customer will approve the variation
and claims deriving for additional costs are included in the
total amount of revenues when it is probable that they will
result in additional revenue.</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>Profit and loss Account for Two Years ended December
    31, 2005</i></b></p>
</blockquote>

<p>The table below sets forth a summary of Eni&#146;s profit and
loss account for the periods indicated. All line items included
in the table below are derived from the Consolidated Financial
Statements prepared in accordance with IFRS.</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>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%"><font size="2">Net sales
        from operations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">57,545</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">73,728</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Other income and revenues <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">1,377</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">798</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Total
        revenues</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">58,922</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">74,526</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(41,592</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(51,918</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(4,931</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(5,781</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating profit </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">12,399</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">16,827</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Net
        financial expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(156</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(366</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Net income from investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">820</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">914</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Profit
        before income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">13,063</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">17,375</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Income taxes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(5,522</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(8,128</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><b>Net profit</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>7,541</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>9,247</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#FFFFFF"><font
        size="2">Pertaining to:</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#FFFFFF">&nbsp;</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="6%"
        bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">- Eni</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">7,059</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8,788</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#FFFFFF"><font
        size="2">- minority interest</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#FFFFFF"><font size="2">482</font></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="6%"
        bgcolor="#FFFFFF"><font size="2">459</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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>
</table>

<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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">72.3%</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">70.4%</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">8.6%</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7.8%</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating profit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">21.5%</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22.8%</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<p><i>2005 compared to 2004 </i>Net profit pertaining to Eni in
2005 was euro 8,788 million with a euro 1,729 million increase
over 2004 (up 24.5%) reflecting primarily an increase in
operating profit (up euro 4,428 million) recorded particularly in
the Exploration &amp; Production segment, in respect to higher
oil and natural gas prices in dollars (Brent up 42.3%) and higher
sales volumes of oil and natural gas (up 38.3 mmBOE, or 6.7%).
These positives were offset in part by higher environmental
provisions (euro 532 million), a provision to the risk reserve
concerning the fine imposed on February 15, 2006 by the Antitrust
Authority and the estimated impact of the application of Decision
No. 248/2004 of the Authority for Electricity and Gas affecting
natural gas prices to residential customers and wholesalers (euro
225 million) in force from January 1, 2005 and the recording in
2004 of net gains on the sale of assets by the Exploration
&amp;&nbsp;Production segment (euro 320 million).</p>

<p>The effect of the increase in operating profit on net profit
was offset in part by higher income taxes (up euro 2,606
million).<br>
</p>

<blockquote>
    <p><b><i>Discontinued operations</i></b></p>
</blockquote>

<p>Discontinued operations under both IFRS and U.S. GAAP in 2005
and 2004 were immaterial.<br>
</p>

<blockquote>
    <p><b><i>Analysis of the line items of the profit and loss
    account:</i></b></p>
    <p><i>Revenue recognition</i></p>
</blockquote>

<p>Revenues from sales of products and services rendered are
recognized upon transfer of risks and advantages associated with
the property or upon settlement of the transaction. 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="1%">&nbsp;</td>
        <td valign="top" width="97%">for crude oil, generally
        upon shipment;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">for natural gas, when the
        natural gas is delivered to the customer;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">for petroleum products sold
        to retail distribution networks, generally upon delivery
        to the service stations, whereas all other sales are
        generally recognized upon shipment; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">for petrochemical products
        and other products, generally upon shipment.</td>
    </tr>
</table>

<p>Revenues are recognized upon shipment when, at that date, the
risks of loss are transferred to the acquirer.</p>

<p>Revenues from the sale of crude oil and natural gas produced
in properties in which Eni has an interest together with other
producers are recognized on the basis of Eni&#146;s working
interest in those properties (entitlement method). Differences
between Eni&#146;s net working interest volume and actual
production volumes are recognized at current prices at
period-end.</p>

<p>Income related to partially rendered services is recognized
with respect to the accrued revenues, if it is possible to
reasonably determine the state of completion and there are no
relevant uncertainties concerning the amounts and the existence
of the revenue and related costs; otherwise it is recognized
within the limits of the recoverable costs incurred.</p>

<p>The revenues accrued in the period related to construction
contracts are recognized on the basis of contractual revenues by
reference to the stage of completion of a contract measured on
the cost-to-cost basis. Additional revenues, deriving from a
change in the scope of the work, are included in the total amount
of revenues when it is probable that the customer will approve
the variation and the relevant amount; claims deriving for
instance from additional costs incurred for reasons attributable
to the client are included in the total amount of revenues when
it is probable that the counterpart will accept them.</p>

<p>Revenues are stated net of returns, discounts, rebates and
bonuses, as well as directly related taxation. Exchanges of goods
and services with similar nature and value do not give rise to
revenues and costs as they do not represent sale transactions.</p>

<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 74,526 and euro 58,922
million in 2005 and 2004, respectively. Total revenues consist of
net sales from operations and other income and revenues.
Eni&#146;s net sales from operations amounted to euro 73,728 and
euro 57,545 million in 2005 and 2004, respectively, and its other
income and revenues totalled euro 798 and euro 1,377,
respectively, in these periods.</p>

<p>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>

<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>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">15,346</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">22,477</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">17,302</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">22,969</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">26,089</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">33,732</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5,331</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">6,255</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">5,696</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,733</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Other
        activities<sup> </sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,279</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,358</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies<sup> </sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">851</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">977</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Consolidation
        adjustment<sup> (1)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(14,349</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(19,773</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>57,545</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>73,728</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

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

<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">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 31 to the Consolidated Financial Statements for
        a breakdown of intersegment sales by segment for the two
        reported years.</font></td>
    </tr>
</table>

<p><i>2005 compared to 2004</i> Eni&#146;s net sales from
operations for 2005 totalled euro 73,728 million, with an
increase of euro 16,183 million over 2004, up 28.1%, due
principally to higher oil prices (denominated in dollars), higher
refined product and petrochemical prices and higher volumes sold
in Eni&#146;s main operating segments.</p>

<p>Revenues generated by the Exploration &amp; Production segment
(euro 22,477 million) increased by euro 7,131 million in 2005, up
46.5%, due principally to higher oil prices realized (oil up
41.3%, natural gas up 15.6%) combined with increased hydrocarbon
production volumes sold (38.3 mmBOE, or 6.7%).</p>

<p>Revenues generated by the Gas &amp; Power segment (euro 22,969
million) increased by euro 5,667 million in 2005, up 32.8%, due
principally to higher natural gas prices and the increase of
volumes sold of natural gas (4.29 BCM, or 5.9%), and electricity
(up 8.92 terawatthours, or 64.4%).</p>

<p>Revenues generated by the Refining &amp; Marketing segment
(euro 33,732 million) increased by euro 7,643 million in 2005, up
29.3%, principally due to higher international prices for oil and
refined products, the effects of which were offset in part by
lower volumes sold on Italian retail and wholesale markets (down
1.1 million tonnes), the effect of the sale of LPG and refined
product distribution activities in Brazil in August 2004 and
lower trading activities (down 1.3 million tonnes).</p>

<p>Revenues generated by the Petrochemical segment (euro 6,255
million) increased by euro 924 million in 2005, up 17.3%, due
mainly to a 12% increase in the average selling prices of
products and a 3.6% increase in sales volumes.</p>

<p>Revenues from the Oilfield Services, Construction and
Engineering segment (euro 5,773 million) increased by euro 37
million in 2005, up 0.6%, reflecting mainly higher utilization
rates of vessels and drilling rigs and a higher volume of orders
fulfilled.</p>

<p>Revenues of Corporate and financial companies (euro 977
million) increased by euro 126 million in 2005, up 14.8%, which
essentially consists of invoices for services provided to other
group segments. In 2005, Corporate started supplying certain
central services amounting to euro 76 million to a merged
subsidiary, Italgas Pi&#249; belonging to the Gas &amp; Power
segment. Other increases in revenues were essentially related to
IT services (euro 27 million) and general services such as
activities related to real estate rentals and maintenance, fleet
of cars, company&#146;s aircrafts, and other activities (euro 21
million).</p>

<blockquote>
    <p><i>Other income and revenues</i></p>
</blockquote>

<p><i>2005 compared to 2004</i> Other income and revenues (euro
798 million) declined by euro 579 million in 2005, down 42%, due
mainly to lower gains on asset divestment in relation to the fact
that in 2004 gains on the sale of mineral assets were recorded by
the Exploration &amp; Production segment for euro 373 million,
and the fact that starting in 2005 derivative contracts on
commodities were accounted for under IFRS No. 32 and 39, under
which gains or losses on derivative financial contracts used to
manage exposure to fluctuations in commodity prices are accounted
for as financial income.<br>
</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>

<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>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2">Purchases, services and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">38,347</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">48,567</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Payroll
        and related costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,245</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,351</font></td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" align="left" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">41,592</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">51,918</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<p><i>2005 compared to 2004</i> Operating expenses (euro 51,918
million) increased by euro 10,326 million in 2005 compared to
2004, up 24.8%, due mainly to: (i) higher prices for oil-based
and petrochemical feedstocks and for natural gas; (ii) higher
environmental provisions (euro 532 million), recorded in
particular in the Other activities and the Refining
&amp;&nbsp;Marketing segment in connection with reclamation and
remediation activities of certain industrial plants related to
businesses exited by Eni in past years and environmental
liabilities relating to refineries and the distribution network
in Italy; (iii) an increase in provisions relating to the fine
imposed on February 15, 2006 by the Antitrust Authority and the
estimated impact of the application of Decision No. 248/2004 of
the Authority for Electricity and Gas from January 1, 2005 (euro
515 million); (iv) a euro 87 million increase in insurance
charges deriving from the extra premium due for 2005 and for the
next five years (assuming normal accident rates) related to the
participation of Eni in Oil Insurance Ltd. These higher insurance
charges reflect the exceptionally high rate of accidents in the
two year period 2004-2005; and (v) increases in provisions
relating to certain legal proceedings and contractual obligations
(euro 58 million). These increases were partially offset by the
sale of activities in Brazil in August 2004.</p>

<p>Payroll and related costs (euro 3,351 million) were up euro
106 million in 2005, or 3.3%, reflecting primarily an increase in
unit labor cost in Italy, offset in part by a decline in the
average number of employees in Italy and the effect of the sale
of refined product distribution activities in Brazil.<br>
</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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%"><font size="2">Exploration
        &amp; Production <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">3,047</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">3,944</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Gas &amp; Power</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">637</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">684</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">465</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">462</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">114</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">118</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">184</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">176</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Other activities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">45</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">31</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Corporate
        and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">106</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">98</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Unrealized profit in inventory <sup>(2)</sup></font></td>
        <td valign="bottom" width="1%" 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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(4</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Total of
        depreciation and amortization</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">4,598</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">5,509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Writedowns</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">333</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">272</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Depreciation, amortization and writedowns</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">4,931</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">5,781</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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 618 and 564 million are included in
        these amounts relative to the years 2005 and 2004,
        respectively.</font></td>
    </tr>
    <tr>
        <td><font size="1">(2)</font></td>
        <td>&nbsp;</td>
        <td><font size="1">Unrealized profit in inventory
        concerned intersegment sales of goods and services.</font></td>
    </tr>
</table>

<p><i>2005 compared to 2004</i> Depreciation, amortization and
writedown charges (euro 5,781 million) increased by euro 850
million in 2005 compared to 2004, up 17.2%. Depreciation and
amortization charges (euro 5,509 million) were up euro 911
million, or 19.8%, from 2004 to 2005 mainly in the Exploration
&amp; Production segment (up euro 897 million) reflecting
primarily: (i) higher development costs for new fields and
increased costs incurred to maintain production levels in certain
mature fields; (ii) the impact on amortization charges of the
revision of previous estimates of asset retirement and removal
costs relating to certain fields located in the UK, Norway,
Kazakhstan; (iii) the impact of oil prices on amortization in
PSAs and buy-back contracts; (iv) higher production; and (v)
higher exploration costs (up euro 50 million). In the Gas &amp;
Power segment amortization charges increased by euro 47 million
due to the coming on stream of the Greenstream gasline and new
power generation capacity.</p>

<p>Writedowns (euro 272 million) concerned mainly Exploration
&amp; Production (euro 156 million), Other activities (euro 75
million) and Petrochemical (euro 29 million) segments.<br>
</p>

<blockquote>
    <p><b><i>d) Operating Profit by Segment</i></b></p>
</blockquote>

<p>The table below sets forth Eni&#146;s operating profit by
business segment for the periods indicated.</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>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%"><font size="2">Exploration
        &amp; Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">8,185</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">12,574</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Gas &amp; Power</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">3,428</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3,321</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,081</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,857</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">320</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">202</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">203</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">307</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Other activities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(395</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(902</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Corporate
        and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(363</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(391</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Unrealized profit in inventory</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(59</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(141</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Operating profit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">12,399</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">16,827</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>The table below sets forth, for each of Eni&#146;s principal
business segments, operating profit 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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="84%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">53.3%</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">55.9%</font></td>
    </tr>
    <tr>
        <td valign="top" width="84%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="7%"><font size="2">19.8%</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="7%"><font size="2">14.5%</font></td>
    </tr>
    <tr>
        <td valign="top" width="84%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.1%</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.5%</font></td>
    </tr>
    <tr>
        <td valign="top" width="84%"><font size="2">Petrochemicals</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="7%"><font size="2">6.0%</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="7%"><font size="2">3.2%</font></td>
    </tr>
    <tr>
        <td valign="top" width="84%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">3.6%</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.4%</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p><b><i>Exploration &amp; Production</i></b> Operating profit in
2005 amounted to euro 12,574 million, a euro 4,389 million
increase compared to 2004, up 53.65%, due to: (i) higher oil and
gas prices (oil prices up 41.3% in dollars, natural gas prices up
15.6% in dollars); (ii) higher production volumes sold (up 38.3
mmBOE, or 6.7%); and (iii) lower asset impairment charges (euro
40 million). These positive factors were offset in part by: (i)
higher operating costs and amortization charges; (ii) net gains
on divestments recorded in 2004 (euro 320 million); and (iii)
higher insurance charges.</p>

<p><b><i>Gas &amp; Power</i></b> Operating profit in 2005
amounted to euro 3,321 million, a euro 107 million decrease
compared to 2004, down 3.1%, due mainly to: (i) a provision
increase relating to the fine imposed on February 15, 2006 by the
Antitrust Authority (euro 290 million) and the estimated impact
of the application of Decision No. 248/2004 of the Authority for
Electricity and Gas from January 1, 2005 affecting natural gas
prices to residential customer and wholesalers (euro 225
million); (ii) weaker realized margins on natural gas sales
related to competitive pressure offset in part by favorable
trends in prices of certain refined products to which natural gas
sale and purchase prices are contractually indexed resulting in a
higher increase of selling prices as compared to supply costs
when comparing 2005 to 2004; and (iii) other provision increases
(euro 46 million). These negative factors were offset in part by:
(i)&nbsp;increased natural gas sales volumes (up 6.13 BCM
including own consumption, or 8%) and higher natural gas volumes
distributed; (ii) a higher operating profit in natural gas
transport activities outside Italy; and (iii)&nbsp;a higher
operating profit of power generation activities which almost
doubled to euro 138 million in 2005, up euro 77 million,
reflecting primarily an increase in sold production of
electricity (8.92 terawatthours, up 64.4%), offset in part by a
decline in realized margins related to unfavorable trends in
prices of certain refined products to which electricity selling
prices and purchase prices of fuels (in particular natural gas)
are contractually indexed resulting in a higher increase of
supply costs as compared to selling prices when comparing 2005 to
2004.</p>

<p><b><i>Refining &amp; Marketing</i></b> Operating profit in
2005 amounted to euro 1,857 million, a euro 777 million increase
compared to 2004, up 71.9%, due essentially to: (i) an inventory
holding gain of euro 671 million resulting from the evaluation of
inventories under the weighted-average cost method of inventory
accounting in connection with rising international prices of oil
and refined products. Inventory holding gains or losses represent
the difference between the cost of sales calculated using the
average cost of supplies incurred during the period and the cost
of sales calculated using the weighted-average method. During
2005 the cost of sales as determined under the weighted-average
method was euro 1,064 million lower than a cost of sales assuming
a cost based on the current cost of supplies in 2005 (euro 393
million lower in 2004); (ii) higher realized margins in refining
(the margin on Brent was up 1.43 dollars/barrel, or 32.9%)
combined with higher volumes processed and an improvement in the
mix of refined products obtained, the effect of which was offset
in part by the impact of the standstill of the Gela refinery in
the first part of 2005 owing to the damage caused by a seastorm
in December 2004; (iii) higher operating profit in distribution
activities in Italy; and (iv) an increase in operating results of
refining and marketing activities in the rest of Europe related
to a favorable trend of the trading environment for refining and
to increased retailing sales in particular in Germany, Spain and
the Czech Republic, due to the purchase/construction of service
stations. These positive factors were offset in part by a euro
185 million increase in operating expenses related in particular
to higher environmental provisions and higher insurance costs and
the effect of the sale of Agip do Brasil (euro 28 million) in
August 2004.</p>

<p><b><i>Petrochemicals</i></b> Operating profit in 2005 amounted
to euro 202 million, a euro 118 million decrease compared to
2004, down 36.9%, due mainly to: (i) higher operating expenses
(euro 92 million) recorded in connection with the restructuring
of the Champagnier plant in view of its shutdown, provisions for
litigation and higher insurance costs; and (ii) lower product
margins in basic petrochemicals reflecting higher oil-based
feedstock purchase costs not fully recovered in selling prices,
partly offset by higher margins in elastomers and polyethylene.
These negative factors were offset in part by higher sales
volumes (up 3.6%) and lower operating costs related to efficiency
actions.</p>

<p><b><i>Oilfield Services Construction and Engineering</i></b>
Operating profit in 2005 amounted to euro 307 million, a euro 104
million increase compared to 2004, up 51.2%. The oilfield
services and construction business reported an operating profit
of euro 306 million, up euro 37 million, or 13.8%, achieved in
the following areas: (i) offshore construction area, reflecting
higher profitability of certain projects completed in North
Africa; (ii) onshore drilling area, reflecting higher activity
levels; and (iii) offshore drilling area, reflecting tariff
increases for the submersible platform Scarabeo 6, higher
utilization of the submersible platform Scarabeo 4 and of the
jack-up Perro Negro 5. Such gains were partially offset by higher
costs on projects in progress in the LNG area and the fact that
for 2004 the Leased FPSO area recorded income relating
essentially to a contract for the recovery of oil spilled from
the Prestige tanker not recorded in 2005.</p>

<p>The engineering business reported an operating profit of euro
1 million, an increase of euro 67 million over 2004, arising from
the higher profitability of certain contracts in addition to the
share of earnings from certain projects acquired in early 2005.</p>

<p><b><i>Other activities</i></b> These activities include
results of operations of Syndial, which manages certain
decommissioning and reclamation activities relating to certain
shut down industrial sites of Eni, and other Eni subsidiaries
(such as, among others, Sieco, Tecnomare, EniTecnologie, Eni
Corporate University and AGI) engaged in diversified activities
(mainly services to Eni business segments). The Other activities
reported an operating loss of euro 902 million for 2005, higher
by euro 507 million, or 128% compared to the loss in 2004, due
essentially to a euro 504 million increase in Syndial&#146;s
operating loss relating to: (i) higher provisions for
environmental liabilities of euro 328 million reflecting
primarily to the clean up of the Porto Marghera site and the
settlement agreed with certain Italian authorities for the
environmental damages and remediation of the same site, the
reclamation of areas belonging to the Mantova plant and the
dismantling of inactive plants and tanks in the Porto Torres
site; (ii) provisions for contractual risks (euro 71 million)
essentially related to the inability to fulfill certain
contractual obligations in connection with product supply and
litigations (euro 40 million); and (iii) higher asset impairments
(up euro 56 million from euro 19 million to euro 75 million);
impairments in 2005 related in particular to the Scarlino and
Porto Torres plants, up euro 44 million and euro 19 million,
respectively.</p>

<p><b><i>Corporate and financial companies</i></b> These
activities include results of operation of the headquarter of the
parent company Eni SpA and of Eni&#146;s subsidiaries engaged in
treasury services. These activities reported an operating loss of
euro 391 million for 2005, down euro 28 million, or 7.7% from
2004, due essentially to an increase in IT costs, up euro 48
million, arising from higher activity levels, and institutional
communication costs, up euro 7 million. These negative factors
were partly offset by lower environmental provisions.<br>
</p>

<blockquote>
    <p><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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2">Exchange gain (loss), net</font></td>
        <td valign="bottom" width="1%" 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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">169</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Interest
        and other financial income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">2</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">74</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Income from securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">31</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">36</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Interest
        and other financial expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(254</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(309</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Accretion of asset retirement obligation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(109</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(109</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Income
        (expense) on derivative financial instruments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">34</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(386</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">(Increase)/decrease in risk reserve provision</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(62</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">less:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Interest capitalized</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">202</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">159</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(156</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(366</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p><i>2005 compared to 2004</i> Net financial expense (euro 366
million) was up euro 210 million from 2004, or 135%, due to
charges pertaining to changes in the fair value of derivative
financial contracts and to higher interest rate charges on dollar
loans (relating to an increase in LIBOR of 2 percentage points),
the effects of which were offset in part by a decrease in average
net borrowings<a href="#(11)"><sup>11</sup></a> and the fact that
in 2004 a euro 62 million increase in the risk reserve provision
was recorded in connection with assignment of a financing
receivable to the acquirer of a divested affiliate of Eni which
is expected to be unable to repay such receivable on the basis of
management estimates.<br>
</p>

<blockquote>
    <p><b><i>f) Net Income from Investments</i></b></p>
</blockquote>

<p><i>2005 compared to 2004</i> In 2005 net income from
investment was euro 914 million and concerned primarily:
(i)&nbsp;Eni&#146;s share of income of affiliates accounted for
under the equity method (euro 737 million), in particular
affiliates in the Gas &amp; Power (euro 358 million) and Refining
&amp; Marketing (euro 221 million) segments; (ii) gains on
disposal (euro 179 million) relating in particular to the sale of
100% of IP (euro 132 million) and a 2.33% stake in Nuovo Pignone
Holding SpA (euro 24 million); and (iii) dividends received by
affiliates accounted for under the cost method (euro 33 million).</p>

<p>The euro 94 million increase in net income from investments
was due essentially to improved results of operations of
affiliates in the Gas &amp; Power segment, in particular Galp
Energia SGPS SA (Eni&#146;s interest 33.34%), Uni&#243;n Fenosa Gas
SA (Eni&#146;s interest 50%) and Blue Stream Pipeline Co BV
(Eni&#146;s interest 50%) as well as the fact that in 2004 a euro
41 million impairment was recorded in connection with the
divestment of Eni&#146;s 35% interest in Albacom. These increases
were offset in part by lower gains on disposal (euro 257 million)
related to the fact that in 2004 the gain on the sale of 9.054%
of the share capital of Snam Rete Gas, 100% of Agip do Brasil SA
and other minor assets were recorded for a total of euro 437
million, as compared to the euro 179 million gain recorded in
2005.<br>
</p>

<blockquote>
    <p><b><i>g) Taxes</i></b></p>
</blockquote>

<p><i>2005 compared to 2004</i> Income taxes were euro 8,128
million, up euro 2,606 million from 2004, or 47.2%, and reflected
primarily higher income before taxes (euro 4,312 million). The
Group&#146;s effective tax rate increased 4.5 percentage points
to 46.8% (42.3% in 2004). There were three factors behind this
increase. First, the higher share of profit before income taxes
earned by subsidiaries in the Exploration &amp; Production
segment operating in countries where the statutory tax rate is
higher than the Group tax rate. Second, profit for the year was
adversely impacted by higher non-deductible charges pertaining to
increases in risk reserve provision, relating mainly to a fine
imposed by the Italian Antitrust Authority. The third factor was
a lower share of non-taxable income pertaining in particular to
lower gains on disposals of shareholdings in consolidated
subsidiaries and of investments recorded under the item &quot;Net
Income from Investments&quot; (see above).<br>
</p>

<blockquote>
    <p><b><i>h) Minority Interest</i></b></p>
</blockquote>

<p><i>2005 compared to 2004</i> Minority interests was euro 459
million and concerned primarily Eni&#146;s interest in Snam Rete
Gas SpA (euro 321 million) and Saipem SpA (euro 115 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&#146;s change in cash and cash equivalent for the periods
indicated.</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>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2">Net profit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">7,541</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">9,247</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2"><i>Adjustments
        to reconcile to cash generated from operating profit
        before changes in working capital:</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td 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="84%" bgcolor="#EEEEEE"><font
        size="2">&#149; Amortization and depreciation and other
        non-monetary items</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">5,092</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">6,518</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">&#149; Net
        gains on disposals of assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(793</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(220</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">&#149; Dividends, interest, and income taxes and
        other changes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">5,740</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">8,471</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Net cash generated from operating profit before
        changes in working capital </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">17,580</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">24,016</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Changes in
        working capital related to operations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(909</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(2,422</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Dividends received, taxes paid, interest (paid)
        received during the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(4,171</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(6,658</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2"><b>Net
        cash provided by operating activities </b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>12,500</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>14,936</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditure</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(7,499</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(7,414</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Investments
        <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(316</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(127</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Disposals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">1,547</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">542</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Other cash
        flow related to capital expenditure, investments and
        divestments </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">308</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">184</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Changes in short and long-term financial debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(3,743</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(540</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Dividends
        paid and changes in minority interests and reserves </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(3,175</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(7,284</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Effect of change in consolidation scope and
        exchange differences </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(55</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">33</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><b>Change in cash and cash equivalent for the
        year </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>(433</b></font></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 align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>330</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Cash and
        cash equivalent at the beginning of the year</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,436</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,003</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Cash and cash equivalent at year end</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">1,003</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">1,333</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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>The table below sets forth the principal components of
Eni&#146;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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2"><b>Net cash provided by operating activities </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>12,500</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>14,936</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Capital
        expenditure</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(7,499</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(7,414</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(316</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(127</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Disposals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">1,547</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">542</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Other cash flow related to capital expenditure,
        investments and divestments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">97</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">293</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Net
        borrowings <sup>(2)</sup> of acquired companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(19</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings <sup>(2)</sup> of divested
        companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">190</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">21</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Exchange
        differences on net borrowings and other changes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(64</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(980</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Dividends paid and changes in minority interests
        and reserves</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(3,175</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(7,284</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><b>Change in net borrowings </b><sup>(2)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>3,280</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>(32</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Net
        borrowings <sup>(2)</sup> at the beginning of the year</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">7,163</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">10,443</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings <sup>(2)</sup> at year end</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">10,443</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">10,475</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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>

<blockquote>
    <p><b><i>Analysis of Certain Components of Eni&#146;s Change
    in Net Borrowings:</i></b></p>
    <p><b><i>a) Cash generated from Operating Profit before
    Changes in Working Capital</i></b></p>
</blockquote>

<p>Cash generated from operating profit before changes in working
capital totalled euro 24,016 million in 2005 and euro 17,580
million in 2004. The euro 6,436 million increase from 2004
reflected primarily increased results of operations.</p>

<p>In 2005, net profit has been adjusted to take into account
amortization and depreciation and other non-monetary items (euro
6,518 million), which concerned primarily depreciation and
amortization of tangible and intangible assets (euro 5,509
million), impairments of fixed assets and investments (euro 272
million) primarily resulting from the impairment of proved and
unproved property in the Exploration &amp; Production segment
(euro 156 million) and a euro 63 million impairment charge in the
Other Activities segment related to certain shutdown plants and
to the Porto Torres petrochemical complex, and income taxes and
interest expense (euro 8,471 million).</p>

<p>In 2004 net profit has been adjusted to take into account
amortization and depreciation and other non-monetary items (euro
5,092 million), which concerned primarily depreciation and
amortization of tangible and intangible assets (euro 4,598
million), impairments of fixed assets and investments (euro 333
million) related in particular to the impairment of proved and
unproved property in the Exploration &amp; Production segment
(euro 287 million), and income taxes and interest expense (euro
5,740 million).<br>
</p>

<blockquote>
    <p><b><i>b) Changes in Working Capital Related to Operations</i></b></p>
</blockquote>

<p>Net working capital related to operations was euro 2,422
million in 2005 and euro 909 million in 2004.</p>

<p>In 2005, the increase in net working capital (euro 2,422
million) was mainly due to a euro 3,576 million increase in trade
accounts receivable due essentially to the impact of increased
international oil and refined product prices, growth in sales
volumes of oil and natural gas and currency translation effects.
This increase related in particular to the Gas &amp; Power (up
euro 1,671 million), Refining &amp; Marketing (up euro 1,010
million) and the Exploration &amp; Production (up euro 806
million) segments. This increase was partly offset by an increase
in the euro value of trade accounts payable (euro 2,333 million)
resulting from the same reasons as the increase in trade accounts
receivable.<br>
</p>

<blockquote>
    <p><b><i>c) Dividends received, taxes paid, interest (paid)
    received during the year</i></b></p>
</blockquote>

<p>Dividends, interest and taxes paid (which is net of amounts
received) totalled euro 6,658 million in 2005 and euro 4,171
million in 2004 and concerned primarily the payment of income
taxes (euro 6,619 million in 2005 and euro 4,199 million in
2004).<br>
</p>

<blockquote>
    <p><b><i>d) Capital Expenditure and Investing Activities</i></b></p>
</blockquote>

<p>Capital expenditure totalled euro 7,414 million in 2005 and
euro 7,499 million in 2004. In 2005, 91% of capital expenditure
related to the Exploration &amp; Production (euro 4,964 million),
Gas &amp; Power (euro 1,152 million) and Refining &amp; Marketing
(euro 656 million) segments. In 2004, 93% of capital expenditure
related to the Exploration &amp; Production (euro 4,853 million),
Gas &amp; Power (euro 1,451 million) and Refining &amp; Marketing
(euro 693 million) segments. For a discussion of capital
expenditure by business segment and a description of changes from
one year to another see below &quot;Capital Expenditure by
Segment&quot;.</p>

<p>Investments (including net borrowings acquired) totalled euro
146 million in 2005 and 316 million in 2004.<br>
</p>

<blockquote>
    <p><b><i>e) Disposals</i></b></p>
</blockquote>

<p>Disposals (including net debt discharged) totalled euro 563
million in 2005 and euro 1,730 million in 2004.</p>

<p>In 2005, disposals (euro 563 million, including net borrowing)
concerned primarily: (i) the Gas &amp; Power segment, related to
the divestment of Eni&#146;s majority interest (67.05%) in
Societ&#224; Azionaria per la Condotta di Acque Potabili (euro 85
million) and 100% of the share capital of in Acquedotto Vesuviano
SpA (euro 20 million); and (ii) the Refining &amp;&nbsp;Marketing
segment related to the divestment of 100% of the share capital of
IP (euro 190 million) and 28% of the share capital of Erg
Raffinerie Mediterranee Srl (euro 97 million).</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 the
disposal of other assets (euro 26 million); (ii) the Exploration
&amp; Production segment (euro 492 million) related in particular
to the program of rationalization of mineral assets (euro 459
million) and disposal of other minor assets (euro 33 million);
(iii) the Refining &amp; Marketing segment (euro 412 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 16 million) and disposal of other minor assets (euro 31
million); (iv) the Other Activities and Corporate and financial
companies segments (euro 101 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
disposal of other minor assets (euro 24 million); and (v) the
Petrochemical segment (euro 41 million) related in particular to
the sale of the elastomer Baytown plant (euro 31 million) and
disposal of other minor assets (euro 10 million).<br>
</p>

<blockquote>
    <p><b><i>f) Dividends Paid and Changes in Minority Interests
    and Reserves</i></b></p>
</blockquote>

<p>In 2005, dividends paid and changes in minority interests and
reserves (euro 7,278 million) related mainly to the dividend
distribution for fiscal year 2004 of euro 3,384 million<a
href="#(12)"><sup>12</sup></a> and the payment of an interim
dividend of euro 1,686 million<a href="#(13)"><sup>13</sup></a>
carried out by Eni SpA, the payment of dividends by Snam Rete Gas
SpA (euro 1,171 million of which euro 976 million was paid as an
extraordinary dividend) and other consolidated subsidiaries (euro
9 million) and the buy-back program (euro 1,034 million).</p>

<p>In 2004, dividends paid and changes in minority interest and
reserves (euro 3,175 million) related mainly to the payment of
dividends for fiscal year 2003 by Eni SpA for a total amount of
euro 2,828 million<a href="#(14)"><sup>14</sup></a> and other
consolidated subsidiaries (euro 248 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 IFRS 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 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&#146;s 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 IFRS that is most directly comparable to net
borrowings is total debt (short-term and long-term debt). The
most directly comparable measure, derived from IFRS reported
amounts, to leverage is the ratio of total 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>
        </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>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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="52%" bgcolor="#EEEEEE"><font
        size="2"><b>Total debt (short-term and long-term debt) </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>5,077</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>7,607</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>12,684</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>5,345</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>7,653</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>12,998</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Cash and
        cash equivalent</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1,003</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1,003</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1,333</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(1,333</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Securities not related to operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(792</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(793</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(903</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(28</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(931</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Non
        operating financing receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(11</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(240</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(251</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(12</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(247</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(259</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Other, net </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(194</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" 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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(194</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" 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 valign="bottom" width="1%" 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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2"><b>Net Borrowings </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>3,077</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>7,366</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>10,443</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>3,097</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>7,378</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>10,475</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade>
        </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>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%"><font size="2">Shareholders&#146;
        equity including minority interests as per Eni&#146;s
        Consolidated Financial Statements prepared in accordance
        with IFRS </font><font size="1">(million euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>35,540</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>39,217</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><i>Ratio of total debt to total
        shareholders&#146; equity including minority interests </i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><i>0.36</i></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><i>0.33</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><i>(0.07</i></font></td>
        <td valign="bottom" width="1%"><font size="2"><i>)</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><i>(0.06</i></font></td>
        <td valign="bottom" width="1%"><font size="2"><i>)</i></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><i>Ratio of net borrowing to total
        shareholders&#146; equity including minority interests
        (leverage)</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><i>0.29</i></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><i>0.27</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>In 2005, net borrowings amounted to euro 10,475 million, a
euro 32 million increase over 2004. Total debt of euro 12,998
million consisted of euro 5,345 million short-term debt
(including the portion of long-term debt due within twelve months
equal to euro 733 million) and euro 7,653 million of long-term
debt.</p>

<p>Total debt included bonds for euro 5,339 million (including
accrued interest and discount). Bonds maturing in the next 18
months amounted to euro 436 million (including accrued interest
and discount). Bonds issued in 2005 amounted to euro 441 million
(including accrued interest and discount). Total debt was
denominated in the following currencies: euro (72%), U.S. dollar
(16%), pound sterling (8%) and 4% in other currencies.</p>

<p>In 2004, net borrowings amounted to euro 10,443 million. Total
debt amounted to euro 12,684 million, of which euro 5,077 million
of short-term debt (including the portion of long-term debt due
within twelve months for euro 927 million) and euro 7,607 million
of long-term debt. Bonds amounted to euro 5,331 million. Total
debt was denominated in the following currencies: euro (63%),
U.S. dollar (24%), pound sterling (10%) and 3% in other
currencies.<br>
</p>

<blockquote>
    <p><b><i>Short-term Debt</i></b></p>
</blockquote>

<p>As of December 31, 2005, short-term debt of euro 4,612 million
(excluding the portion of long-term debt due within twelve
months) increased by euro 462 million over 2004. The weighted
average interest rate of Eni&#146;s short-term debt was 2.5% and
2.8% for the years ended December 31, 2004 and 2005,
respectively.</p>

<p>As of December 31, 2005, Eni maintained committed and
uncommitted unused lines of credit for euro 5,855 and euro 4,783
million, respectively (euro 5,304 million and euro 7,771 million,
respectively, at December 31, 2004). These agreements provide for
interest charges based on prevailing market conditions.
Commission fees on unused lines of credit are not significant.<br>
</p>

<blockquote>
    <p><b><i>Long-term Debt</i></b></p>
</blockquote>

<p>As of December 31, 2005, long-term debt of euro 8,386 million
decreased by euro 148 million over 2004.</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). The amount of this financing
arrangement subject to said restrictive covenants was euro 1,104
million and euro 1,258 million, as of December 31, 2004 and 2005,
respectively. In 2005, those covenants primarily concern
Eni&#146;s financing arrangements (euro 1,235 million, as of
December 31, 2005, of which euro 110 million as comprised a
portion of long-term debt due within twelve months). Eni was in
compliance with said covenants. Also Saipem SpA entered into
financing arrangements with banks for euro 275 million (euro 300
million as of December 31, 2004), that require maintenance of
certain financial ratios generally based on Saipem&#146;s
consolidated financial condition and results of operations.
Saipem was in compliance with said covenants.</p>

<p>As of December 31, 2005, bonds of euro 5,339 million included
bonds issued under the Medium Term Notes Program for a total of
euro 4,365 million and other bonds for a total of euro 974
million.</p>

<p>As of December 31, 2004 bonds of euro 5,331 million included
bonds issued under the Medium Term Notes Program for a total of
euro 4,296 million and other bonds for a total of euro 1,039
million.</p>

<p>The weighted average interest rate on Eni&#146;s long-term
debt (including current maturities) at December 31, 2005 was
approximately 4.5% (4.2% at December 31, 2004).<br>
</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="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </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="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="85%">&nbsp;</td>
        <td width="15%"><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="84%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,853</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,964</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,451</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">1,152</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">693</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">656</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">148</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">112</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">186</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">349</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">49</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">69</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">119</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">112</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="84%" bgcolor="#EEEEEE"><font
        size="2"><b>Total </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>7,499</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>7,414</b></font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="84%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
    </tr>
</table>

<p>In 2005, capital expenditure of the Exploration &amp;
Production segment amounted to euro 4,964 million, representing
an increase of euro 111 million, or 2.3%, from 2004 due primarily
to higher unit development costs in connection with a higher rate
of development activity for new fields in complex environments
and in mature areas, and higher costs of certain productive
factors (e.g. tariffs of drilling rigs). Capital expenditure for
2005 concerned mainly development expenditure (euro 3,952
million, compared to euro 4,310 million in 2004) directed mainly
outside Italy (euro 3,541 million), in particular in Kazakhstan,
Libya, Angola and Egypt. Development expenditure in Italy (euro
411 million) concerned in particular the completion of work for
plant and infrastructure in Val d&#146;Agri and sidetrack and
infilling actions in mature areas. Exploration expenditure
amounted to euro 656 million (euro 499 million in 2004), of which
about 96% was directed outside Italy. Outside Italy exploration
concerned in particular the following countries: Norway, Egypt,
the United States, Brazil and Indonesia. In Italy exploration
concerned essentially Northern Italy.</p>

<p>Expenditure for the purchase of proved and unproved property
amounted to euro 301 million and concerned the acquisition of:
(i) a further 1.85% stake in the Kashagan project for dollar 200
million; (ii) 104 exploration blocks and two fields in
pre-development phase in Northern Alaska; (iii) a 40% stake in
the OML 120 and OML 121 concessions under development in the
Nigerian offshore; and (iv) a 50% interest in WA-313-P and a
53.8% interest in WA-280-P permits in Australia. Capital
expenditure for capital goods amounted to euro 55 million.</p>

<p>In 2004, capital expenditure in the Exploration &amp;
Production segment amounted to euro 4,853 million and largely
concerned development expenditure 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. 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. About 90% of
exploration expenditure (euro 499 million) was directed outside
Italy. Outside Italy exploration concerned in particular the
following countries: Egypt, the United States, Nigeria, Norway,
Indonesia and Kazakhstan. In Italy exploration was focused
onshore in Sicily and Central Italy. A further euro 17 million
(Eni&#146;s share) was expensed by affiliates for exploration
projects in Saudi Arabia, Russia and Spain.</p>

<p>In 2005, capital expenditure in the Gas &amp; Power segment
totalled euro 1,152 million and related in particular to:
(i)&nbsp;development and improvement of Eni&#146;s transmission
network in Italy (euro 643 million); (ii) the continuation of the
construction of combined cycle power plants (euro 239 million);
(iii) development and improvement of Eni&#146;s distribution
network in Italy (euro 182 million); and (iv) development of
Eni&#146;s transport network outside Italy (euro 48 million). As
compared to 2004, capital expenditure declined by euro 299
million, down 20.6%, due essentially to the completion of the
Greenstream gasline in 2004 and of the power generation
development plan.</p>

<p>In 2004, capital expenditure in the Gas &amp; Power segment
totalled euro 1,451 million and related mainly to:
(i)&nbsp;development and improvement 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 improvement
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 2004.</p>

<p>In 2005, capital expenditure in the Refining &amp; Marketing
segment amounted to euro 656 million and concerned:
(i)&nbsp;refining and logistics (euro 349 million), in particular
plant efficiency and flexibility improvement actions including
the completion of the tar gasification plant at the Sannazzaro
refinery; (ii) the upgrade of the distribution network and the
construction of new service stations in Italy (euro 154 million);
and (iii) the upgrade of the distribution network and to a lesser
extent the purchase of service stations in the rest of Europe
(euro 71 million). As compared to 2004, capital expenditure
declined by euro 37 million, or 5.3%, due essentially to the
completion of the plant in Sannazzaro.</p>

<p>In 2004, capital expenditure in the Refining &amp; Marketing
segment amounted to euro 693 million 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)&nbsp;the upgrade of the
refined product distribution network and the purchase of service
stations in the rest of Europe (euro 69 million).</p>

<p>In 2005, capital expenditure in the Petrochemicals segment
amounted to euro 112 million and concerned in particular actions
for extraordinary (euro 37 million) and periodical (euro 27
million) improvement, actions for environmental protection and
for complying with safety and environmental regulations (euro 25
million) and improving the efficiency of plants (euro 23
million).</p>

<p>In 2004, capital expenditure in the Petrochemicals segment
amounted to euro 148 million, and concerned in particular actions
for improving the efficiency of plants (euro 58 million) and
actions for environmental protection and for complying with
safety and environmental regulations (euro 41 million).</p>

<p>In 2005, capital expenditure in the Oilfield Services,
Construction and Engineering segment amounted to euro 349
million, up 87.6% from 2004 and concerned mainly oilfield
services and construction (euro 346 million), in particular: (i)
improvement and upgrade of equipment; (ii) vessels and logistical
support means for specific contracts, in particular Kashagan;
(iii) upgrade of operating structures in Kazakhstan and West
Africa; and (iv) the purchase of the Margaux tanker ship and the
beginning of its conversion into an FPSO unit that will operate
in Brazil on the Golfinho field.</p>

<p>In 2004, capital expenditure in the Oilfield Services,
Construction and Engineering segment amounted to euro 186 million
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>&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>The table below sets forth certain indicators of the trading
environment 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>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </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>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>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>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">47.50</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">61.75</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">50.19</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">70.09</font></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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">36.23</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">51.37</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">39.15</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">55.98</font></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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.311</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.202</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.282</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1.252</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Average
        European refining margin <sup>(3)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4.26</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.95</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6.92</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5.11</font></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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.6</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2.8</font></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%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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 U.S.
        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 U.S.
        dollars per barrel. FOB Mediterranean Brent dated crude
        oil. Source: Eni calculations based on Platt&#146;s
        Oilgram data.</font></td>
    </tr>
</table>

<blockquote>
    <p><br>
    <b><i>Eni&#146;s results of operations for the first quarter
    2006</i></b></p>
</blockquote>

<p>Net profit for the first quarter of 2006 increased by 21.6%
over the first quarter of 2005, reflecting higher operating
profit (up 25.7%), partially offset by a higher Group effective
tax rate, up 4.1% (from 42.6 to 46.7%). The increase in the
effective tax rate was due principally to a higher share of
profit before income taxes earned by subsidiaries in the
Exploration &amp; Production division operating in countries
where the statutory tax rate is higher than the average tax rate
for the Group.</p>

<p>Eni&#146;s results benefited from a favorable trading
environment with a higher Brent crude oil price (up 30%) and a
depreciation of the euro versus the dollar (down 8.3%). These
positive factors were partially offset by declining refining
margins (down 30.8%), lower petrochemical products margins and
declining selling margins on natural gas as a consequence of the
new regulatory regime established by the Italian Authority for
Electricity and Gas. In the subsequent months of April and May,
the trend in the euro versus U.S. dollar exchange rate reversed
with the euro appreciating considerably versus the dollar. Should
this trend of appreciation continue for the rest of the year,
Eni&#146;s results of operation will be adversely impacted as
compared to the first quarter of 2006.</p>

<p>The increase in Eni&#146;s operating profit for the first
quarter 2006 was largely attributable to Exploration
&amp;&nbsp;Production division (up 67.6%) due to higher oil
prices (oil up 33.4% in dollars, natural gas up 24.4% in dollars)
combined with increased production volumes sold (up 7.8%), and to
the favorable impact of the depreciation of the euro versus the
U.S. dollar, offset in part by higher operating costs and
amortization charges.</p>

<p>These increases were partly offset by lower operating profit
in:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the Gas &amp; Power division
        (down 23%) due primarily to a decrease in natural gas
        margins as a consequence of the new regulatory regime
        established by the Italian Authority for Electricity and
        Gas with Decision No. 248/2004 affecting natural gas
        prices to residential customers and wholesalers combined
        with higher purchasing costs. See &quot;Item 4 &#150;
        Regulation &#150; Gas &amp; Power &#150; Natural gas
        prices&quot;. On the positive side, sales of natural gas
        were up 1.87 BCM, or 7.2%, and electricity production
        sold was up 1.44 terawatthours, or 28.9%. Transported
        natural gas volumes outside Italy were also higher
        reflecting the coming-on-line of volumes transported
        through the Greenstream pipeline from Libya;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the Petrochemical division
        (down 75.3%) affected by the significantly higher cost of
        oil-based feedstocks not completely transferred to
        selling prices; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the Refining &amp; Marketing
        division (down 67%) due primarily to declining refining
        margins (margins on Brent were down 1.31 dollars/barrel,
        or 30.8%), the effect of longer maintenance outages of
        refineries and higher environmental provisions (euro 21
        million). These factors were offset in part by the impact
        of the appreciation of the dollar over the euro.</td>
    </tr>
</table>

<p>Eni&#146;s net sales from operations (revenues) for the first
quarter of 2006 increase by 35.2% from the first quarter of 2005,
primarily reflecting higher realized prices and higher sales
volumes in virtually all of Eni&#146;s operating segments. Also
contributing was the favorable impact of the depreciation of the
euro versus the dollar.</p>

<p>The appreciation of the euro over other currencies, in
particular the U.S. dollar (at March 31, 2006 the EUR/USD
exchange rate was up 2.5% over December 31, 2005) resulted in
decrease in the book value of net capital employed, in net equity
and in net borrowings at 2005 year end.</p>

<p>Net borrowings at March 31, 2006 declined by 39.9% from
December 31, 2005, due to cash inflow provided by operating
activities, and was also influenced by seasonality factors, cash
from asset divestments and currency translation effects. These
inflows were offset in part by financial requirements for capital
expenditure and investments and the repurchase of own shares.</p>

<p>In the first quarter of 2006 hydrocarbon production increased
by approximately 7% as compared to the first quarter of 2005.
This increase was driven by organic growth in Libya, Angola and
Egypt. Production for the quarter was adversely impacted by: (i)
an estimated 29 KBOE/d reduction due to lower entitlements in
certain PSAs and buy-back contracts; (ii) field declines in
mature areas, mainly in natural gas production in Italy; and
(iii) residual hurricane impacts on production in the Gulf of
Mexico and outages and disruptions in Nigeria due to social
unrest.</p>

<p>Natural gas sales (included gas consumed by Eni and Eni&#146;s
share of sales of its affiliates) increased by 5.8% as compared
to the first quarter of 2005. Electricity production sold
increased by 28.98% as compared to the first quarter of 2005.<br>
</p>

<blockquote>
    <p><b><i>Cancellation of the Daci&#243;n oil field contract on
    part of the Venezuelan State Oil Company</i></b></p>
</blockquote>

<p>With effective date April 1, 2006, the Venezuelan State oil
company Petr&#243;leos de Venezuela SA (PDVSA) unilaterally
terminated the service contract governing activities at the
Daci&#243;n oil field where Eni acted as a contractor, holding a 100%
working interest. As a consequence, starting on the same day,
operations at the Daci&#243;n oil field are conducted by PDVSA which
replaced Eni Daci&#243;n BV, Eni&#146;s wholly-owned subsidiary that
had been operating the field until that date.</p>

<p>Eni believes that it is entitled to a market value
compensation for the expropriation of the Daci&#243;n field. On these
basis, Eni is available to reach an agreement with the Venezuelan
authorities. In case an amicable settlement is not possible, Eni
will take any other action in order to protect its interest in
Venezuela. Based on internal and external independent evaluation,
Eni is confident that a fair market compensation will not be
lower than the book value of the Daci&#243;n related assets.
Accordingly, management decided not to impair the book value of
Eni&#146;s Daci&#243;n assets. In 2005 and in the first quarter 2006,
the Daci&#243;n field production rate was about 60 KBBL/d. Management
expects Eni&#146;s proved reserves of hydrocarbons to be reduced
by an amount of approximately 175 mmBBL corresponding to
Eni&#146;s net proved reserves of the Daci&#243;n field as of
December 31, 2005 as a consequence of the loss of Eni&#146;s
title to the field.</p>

<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 2006:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">production of liquids and
        natural gas is expected to increase from the 1,693 KBOE/d
        level of 2005. Management plans to increase production
        mainly in Libya, Angola and Egypt due to full production
        from fields that commenced production in the second half
        of 2005. These increases will be partly offset by natural
        field declines, residual hurricane impacts on production
        in the Gulf of Mexico and outages and disruptions in
        Nigeria due to social unrest and the impact of the
        unilateral cancellation by the Venezuelan national oil
        company PDVSA of the service contract for the Daci&#243;n oil
        field effective from April 1, 2006. Despite the adverse
        impact of the unforeseen events in Venezuela and Nigeria,
        production growth rate for the year is expected to be 3%
        assuming an average Brent crude oil price of 54.5 dollars
        per barrel in 2006. Management believes this growth rate
        to be consistent with Eni&#146;s planned average growth
        rate of 4% for its oil and natural gas production in the
        four year period 2006-2009;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">sales volumes of natural gas
        are expected to increase by approximately 2% from the
        91.15 BCM level of 2005. Management plans to increase
        natural gas sales volumes mainly in Turkey, Germany and
        Spain;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">sold production of
        electricity is expected to increase by approximately 15%
        from the 22.77 terawatthours level of 2005. Management
        plans to increase sold production of electricity thanks
        to the ramp-up of new production capacity at the Brindisi
        and Mantova sites; lower production is expected at the
        Ravenna and Ferrera Erbognone plants due to planned
        maintenance;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">refining throughputs on
        Eni&#146;s account are expected to decline slightly from
        2005, due mainly to planned maintenance at the
        Sannazzaro, Livorno and Taranto refineries. Otherwise
        Eni&#146;s refineries are expected to run at full
        capacity; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">retail sales of refined
        products on the Agip branded network in Italy are
        expected to remain stable at 8.8 million tonnes;
        according to management&#146;s plans the impact of the
        expected decline in domestic consumption is projected to
        be offset by a higher network performance. In the rest of
        Europe management plans to increase sales from the 3.7
        million tonnes level of 2005 despite the expected
        stagnation in consumption; in particular higher sales are
        expected in Spain, France and Central Eastern Europe also
        due to the construction/acquisition of service stations.</td>
    </tr>
</table>

<p>In 2006, capital expenditure is expected to amount to euro 9.7
billion, representing a 31% increase from 2005. Approximately 91%
of capital expenditure is planned in Eni&#146;s Exploration &amp;
Production, Gas &amp; Power and Refining &amp; Marketing business
segments; the main increases are expected in exploration
projects, the development of oil and natural gas reserves,
upgrading of natural gas transport and import infrastructure and
upgrading of refineries.</p>

<p>Overall, in the next four year period management plans to
invest approximately euro 35.2 billion in new capital
expenditure; approximately 69%, 12% and 10% of this new capital
expenditure is planned to be made in the Exploration &amp;
Production, Gas &amp; Power and Refining &amp; Marketing
segments, respectively. Key planned projects are as follows:
(i)&nbsp;development of reserves of hydrocarbons in Kazakhstan,
Angola, Nigeria, Libya, Italy and Egypt; (ii) exploration in
selected areas; (iii) increase of Eni&#146;s import capacity of
natural gas from Algeria and Russia and upgrading of the Italian
natural gas transport and distribution networks; (iv)
interventions aimed at upgrading primary distillation capacity
and conversion capacity and the degree of flexibility of
Eni&#146;s refining system; and (v)&nbsp;upgrading and
development of Eni&#146;s Italian and European networks of
service stations for the marketing of petroleum product<font
size="2">s.</font></p>

<p>In order to evaluate the profitability of individual capital
expenditure projects, management uses a long-term reference oil
price of 30 dollars per barrel. 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: (i)
Eni&#146;s weighted average cost of capital which is
differentiated for each business segment; (ii)&nbsp;a country
risk premium which reflects the riskiness of each country of
operation in terms of macroeconomic, business and social current
conditions and outlook; and (iii) a premium for the business
risk.</p>

<p>In the next four year period management plans to pay dividends
in line with the euro 1.1 dividend per share paid to shareholders
for fiscal year 2005, of which euro 0.45 per share was paid in
October 2005 as an interim dividend with the balance be paid late
in June 2006. Total cash outlay is expected at euro 4.1 billion
(including the euro 1.7 billion already paid in October 2005).
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>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 next two years assuming a level
of 54.5 and 45 dollars per barrel for 2006 and 2007,
respectively; then in following years management expects crude
oil prices to stabilize until settling on the long term level of
30 dollars per barrel. Management's planned target of an oil and
natural gas production level of 2 mmBOE/d in 2009, implying an
average growth rate of 4% in the 2006-2009 four year period,
assumed a Brent crude oil price of $32 per barrel in 2009, under
which management has used to estimate entitlements to production
in certain PSAs and buy-back contracts. In the 2006-2009 four
year period management expects an exchange rate of approximately
1.30 U.S. dollars per euro.</p>

<p>Management expects to maintain a stable financial structure.
See the paragraph &quot;Financial condition&quot; above, for a
discussion of how Eni&#146;s management assess Eni&#146;s
financial structure.</p>

<blockquote>
    <p><i>Discussion of certain business trends expected for 2006
    and beyond</i></p>
</blockquote>

<p>Decision No. 248/2004 the Authority for Electricity and Gas
established, among other things: (i) that an increase in the
international price of Brent crude oil may only be partially
transferred on to residential and commercial users of natural gas
in case international prices of Brent crude oil exceed the 35
dollars per barrel threshold; and (ii) that Italian natural gas
importers &#150; including Eni &#150; must renegotiate supply
contracts to wholesalers in order to take account of the
reduction of the price of natural gas sold to residential and
commercial users. A proceeding has commenced between the
Authority for Electricity and Gas and Eni, which appealed this
decision to an administrative court. Management believes a
negative outcome of this matter to be likely. Accordingly, in
2006, management expects Eni&#146;s natural gas selling margins
to be adversely impacted by a material amount in light of the
high Brent crude oil prices.</p>

<p>In addition, Eni is experiencing some pricing pressure in its
core natural gas business in Italy as a consequence of increasing
competition and the need to comply with the mandatory ceilings
provided for by the Italian regulatory system by selling natural
gas volumes available under take-or-pay purchase contracts to
certain Italian natural gas importers who resell those volumes on
the Italian natural gas market (see &quot;Item 4 &#150;
Regulation of the Italian Natural Gas Market&quot; and &quot;Item
3 &#150; Risk Factors&quot;).</p>

<p>However, management expects declining natural gas selling
margins to be offset almost completely by the planned growth in
natural gas sales in European markets and in supplies for the
production of electricity, cost savings deriving from planned
efficiency improvement actions and higher volumes of 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&#146;s ability to fulfill its
contractual obligations under take-or-pay contracts for the
purchase of natural gas. In addition, management expects natural
gas sales in Italy to decline from the 58 BCM level of 2005 due
to increased competition. Management plans to manage Eni&#146;s
growing portion of natural gas purchased under take-or-pay
contracts which cannot be sold in Italy and to compensate for the
expected decline in natural gas sales in Italy by means of: (i) a
better commercial offer based on the integration of Eni marketing
policy in natural gas and electricity generation businesses,
aiming at customer satisfaction; (ii)&nbsp;increasing sales in
European natural gas markets where Eni&#146;s presence is
established, as a result of supply contracts already signed,
expected demand growth and marketing efforts directed to expand
Eni&#146;s market shares in relevant areas; (iii) developing
Eni&#146;s presence in recently entered markets; (iv) exploiting
the growing importance of natural gas spot markets (the so called
continental hubs for natural gas); and (v) developing the
business of LNG.</p>

<p>For a discussion of certain risks relating to 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>In 2006, management expects the Group effective tax rate to
increase from the 46.8% level recorded in 2005. The expected
increase in the Group effective tax rate will be driven
principally by the increasing share of profit before income taxes
which is expected to be earned by subsidiaries in the Exploration
&amp; Production division operating in countries where the
statutory tax rate is higher than the average tax rate for the
Group. In addition, a further rise in Eni&#146;s Group effective
tax rate is likely in light of a proposed fiscal reform impacting
profits of corporations in the United Kingdom. See &quot;Item 4
&#150; Exploration &amp; Production &#150; North Sea&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.<br>
</p>

<blockquote>
    <p><b><i>Off-Balance Sheet Arrangements</i></b></p>
</blockquote>

<p>Eni has entered into certain off-balance sheet arrangements,
including guarantees, commitments and risks, as described in Note
24 to the Consolidated Financial Statements. Eni&#146;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 24 to the Consolidated Financial Statements.<br>
</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 14, 18 and 24.</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>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>2010</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>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="44%" bgcolor="#EEEEEE"><font
        size="2">Long-term Debt </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,386</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">733</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,339</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">661</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">524</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,370</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,759</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">Short-term
        Debt</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,612</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,612</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2"><b>Sub total</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>12,998</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>5,345</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>1,339</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>661</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>524</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>1,370</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>3,759</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">Operating
        leases relating to real estate rental in Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">663</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">89</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">91</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">88</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">83</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">242</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">Other
        Commitments (off balance sheet):</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take-or-pay </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">119,444</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11,527</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">10,970</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">9,559</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,620</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,697</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">71,071</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ship-or-pay</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,094</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">338</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">361</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">372</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">373</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">374</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,276</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">296</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">116</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">128</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<em>of
        which:</em></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>- Purchase of
        investments</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><i>103</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><i>103</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#FFFFFF"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>- Memorandum of
        intent relating Val d&#146;Agri </i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>193</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>13</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>13</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>13</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>13</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>13</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#FFFFFF"><font size="2"><i>128</i></font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="44%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </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 included 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 2010 will be
roughly in line with the average amounts expected to be paid in
the 2006-2010 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 the 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.<br>
</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.<br>
</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.<br>
</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. Eni&#146;s financial companies follow guidelines
approved by Eni&#146;s treasury department on the choice of
highly credit-rated counterparties in their use of financial and
commodity instruments, including derivatives. Eni has not
experienced material nonperformance by any counterparty. As of
December 31, 2005, Eni has no significant concentrations of
credit risk.<br>
</p>

<blockquote>
    <p><b><i>Hedging</i></b></p>
</blockquote>

<p>The most important currencies for Eni are the euro and the
U.S. 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 enters into certain
derivative financial contracts to hedge existing receivables and
payables, including deposits and borrowings denominated in
currencies other than the currency used in the relevant financial
statements.</p>

<p>Eni enters into various types of derivative financial
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.</p>

<p>Eni enters into certain derivative financial contracts and
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. For an
in-depth analysis of market risks exposure and policies used by
Eni to manage its exposure to market risk see &quot;Item 11
&#150; Quantitative and Qualitative Disclosures About Market
Risk&quot;.<br>
</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 2005, 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 Consolidated Financial Statements have been
prepared in accordance with IFRS issued by the IASB as adopted by
the EU, which differs in certain respects from U.S. GAAP. The
significant differences between IFRS and U.S. GAAP, as applied to
Eni&#146;s Consolidated Financial Statements, are: A)
consolidation policy; B) exploration &amp; production activities;
C) asset impairment and subsequent asset write-up; D) deferred
tax assets and liabilities; E)&nbsp;intangible assets; and F)
accounting for inventory evaluation. See Note 33 to the
Consolidated Financial Statements for a more detailed discussion
of the significant differences between IFRS and U.S. GAAP that
affect Eni&#146;s Consolidated Financial Statements, and Note 34
to the Consolidated Financial Statements for a reconciliation of
net profit and shareholders&#146; equity between IFRS and U.S.
GAAP.</p>

<p>Consolidated operating profit under U.S. GAAP was euro 15,528
million and euro 11,739 million in 2005 and 2004, respectively,
compared with consolidated operating profit under IFRS of euro
16,827 million and euro 12,399 million for the same years. The
significant reconciling items are as follows: (i) Saipem SpA,
including its subsidiaries, accounted for under the equity method
for U.S. GAAP purposes, but fully consolidated under IFRS; 50-50
owned joint ventures and other entities in which Eni&#146;s
ownership equals that of other partners are accounted for under
the equity method accounting for both IFRS and U.S. GAAP; (ii)
the capitalization of certain oil and natural gas exploration and
development costs that were fully or differently amortized in the
same period under IFRS; and (iii)&nbsp;the impact of the
different accounting method for determining the cost of inventory
on hand (last-in-first-out method of accounting under U.S. GAAP
versus average cost method of accounting under IFRS). See Note 34
to the Consolidated Financial Statements for a breakdown of
operating profit by segment under U.S. GAAP for the years 2005
and 2004.</p>

<p>Consolidated net profit under U.S. GAAP was euro 7,583 million
and euro 6,401 million in 2005 and 2004, respectively, compared
with consolidated net profit under IFRS of euro 8,788 million and
euro 7,059 million for the same years. In addition to the effects
discussed above, the reconciliation of consolidated net profit to
U.S. GAAP was affected in all years presented by the tax effect
of reconciling items and the differences in deferred income tax
treatment of distributable reserves.</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 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>
        </td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="39%">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">68</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">Paolo Scaroni</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">CEO </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">2005</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">60</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">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">59</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">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">69</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">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">69</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">Marco Pinto</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">2005</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">44</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">Marco Reboa</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">2005</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">51</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">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">61</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">Pierluigi Scibetta</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">2005</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">45</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&#146;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 of the parent company
Eni SpA and CEO of Eni Group, confirming the powers already
delegated to the previous CEO.</p>

<p>On December 14, 2005, the Board of Directors of Eni appointed
Domenico Dispenza as General Manager of the Gas &amp; Power
Division with those powers as defined by the Board from January
1, 2006. Mr. Dispenza may be removed by the Board of Directors of
Eni without cause. Mr. Dispenza replaced Mr. Sgubini, who reached
the mandatory retirement age.</p>

<p>The table below sets forth Eni SpA&#146;s, General Manager,
the 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 CEO 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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </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%">Paolo Scaroni</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">General Manager of Eni</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">1</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">60</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%">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">30</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">55</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%">Domenico Dispenza</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">2005</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">60</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">33</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%">Marco Mangiagalli</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">Chief Financial Officer</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2006</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%">Massimo Mantovani</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">2006</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">13</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">43</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%">Stefano Lucchini</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President <br>
        for Public Affairs and Communication</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">1</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">44</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 <br>
        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%">Amedeo Santucci</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President <br>
        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%">Salvatore Sardo</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President<br>
        for Human Resources</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">1</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%">Roberto Ulissi</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President<br>
        for Corporate Affairs and Governance</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2006</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">0</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">44</p>
        </td>
    </tr>
</table>

<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 and business
restructuring. From 1966 to 1998 he was Professor of Business
Finance at the Universit&#224; Cattolica of Milan. He is a Member of
the Board of Directors of Fininvest SpA, Mondadori SpA, Merloni
Termosanitari SpA and G.D. SpA and general partner of Brafin
S.A.P.A. He has been Chairman of Rizzoli-Corriere della Sera SpA
and Publitalia SpA.</p>

<p>Paolo Scaroni graduated from the Universit&#224; Bocconi in Milan
and obtained a masters degree in business administration from
Columbia University in New York. After working 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 of 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, a member of the managing
committee of Confindustria and chairman of Unindustria Venezia in
Italy, while outside Italy is chairman of the Board of Directors
of Alliance UniChem, a member of the Supervisory Board of ABN
AMRO, and a member of the Board of Columbia University&#146;s
Business School.</p>

<p>Alberto Cl&#244; is a professor of Industrial Economy at the
University of Bologna and was Minister of Industry and Minister
of Foreign Trade ad interim in 1995 and 1996. During the Italian
presidency of the European Union he was chairman of the Council
of Ministers of Industry and Energy of the European Union. In
1996 he was awarded the title of Cavaliere di Gran Croce al
Merito of the Republic of Italy. He is a Member of the Board of
Directors of 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 consultant. He served as a
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 a 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. He is Chairman of Italia
Turismo SpA and a member of the Board of Sviluppo Italia SpA.</p>

<p>Marco Pinto is a magistrate and notary and has previously 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 he has been 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 on corporate governance,
economic evaluation and financial statements. He is a member of
the Board of Directors of Seat PG SpA, Interpump SpA, IMMSI SpA
and Intesa Private Banking. 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 a Member of the Board of liquidators of Cirio Del Monte
Group under special management. He 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, he
was appointed director of Biondi Finanziaria (Fiat Group), from
1976 to 1991 was a partner at Egon Zehnder, director of Lancome
Italia and a director of certain companies of the RCS-Corriere
della Sera Group and Versace Group. He is chairman of Finanziaria
Sambonet SpA, Kenwood Italia SpA and a 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 and of the Gestore del Mercato Elettrico
SpA. In 2004, he was appointed director of Nucleco SpA. He 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>Domenico Dispenza is an engineer and joined Snam&#146;s study
department in 1974. He served in various managing positions in
Eni group companies engaged in natural gas activities. In 2004 he
was elected Chairman of Snam Rete Gas SpA and in 2006 he was
appointed General Manager of Eni&#146;s Gas &amp; Power Division.</p>

<p>Angelo Taraborrelli, graduated in law, joined the Eni group in
1973 as an 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&#146;s 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>Marco Mangiagalli worked for the Barclays Group and other
Italian merchant banks before joining the Eni Group in 1979. He
is a member of the Board of Directors of various Eni companies.
He is responsible for Eni&#146;s administration, financial
reporting and accounting, planning and control, and treasury
operations.</p>

<p>Stefano Lucchini graduated in economics and joined the study
department of Montedison. After a period in the United States,
where he was assistant to the Chairman of the Energy and Commerce
Commission of the U.S. Congress, he was head of communications at
Montedison USA. In 1993 he returned to Italy and was head of the
investor relations department for the Ferruzzi and Montedison
Group. He was then Director for external relations at Enel and
later at Confindustria and Banca Intesa. He joined Eni as
Director for communications in 2005. He is also a professor at
the High School for Journalism of the Universit&#224; Cattolica in
Milan.</p>

<p>Massimo Mantovani is an attorney at law and worked as a legal
counsel for international activities before joining Snam&#146;s
legal office in 1993. He was responsible for legal affairs at
Eni&#146;s Gas &amp; Power Division until he was appointed
Eni&#146;s Senior vice president for legal affairs in 2005,
replacing Carlo Grande who retired.</p>

<p>Leonardo Maugeri, after extensive academic experience acquired
in Italy and abroad, 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>Amedeo Santucci, graduated in engineering, joined the Group in
1979 and served various positions in the areas of maintenance and
procurement. He was Chairman of Eurosolare.</p>

<p>Salvatore Sardo graduated in economics and started his career
as an auditor for Coopers &amp; Lybrand. He later joined Telecom
Italia where, after the privatization of the company, he was
responsible for administration and control. He was Chairman of
Pagine Gialle from 1998 to 2001 and returned to Telecom Italia as
manager of the group&#146;s real estate and general services.
From 2003 he was procurement and security manager at Enel until
2005 when he joined Eni. He replaced Renato Roffi who retired.</p>

<p>Roberto Ulissi is an attorney at law. After some years at the
Banca d&#146;Italia as legal counsel he was transferred to the
Ministry of Economy and Finance as an expert in legal and banking
matters for the privatization of state-owned industrial
companies. He then became Director General of the Ministry, head
of the banking and financial markets department. He was appointed
Senior Vice President for corporate affairs and governance of Eni
on May 12, 2006.<br>
</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>

<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>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade>
        </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">2006</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><i>External Auditors</i></p>
</blockquote>

<p>As provided for by Italian law, 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 Shareholders&#146;
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 Shareholders&#146; Meeting approving
financial statements for 2006.</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 diverse circumstances 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 on 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 requirements of Borsa Italiana SpA, in
particular the &quot;Guidelines for the preparation of the yearly
report on corporate governance&quot; of February 12, 2003,
Eni&#146;s corporate governance system is described below. 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.<br>
</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 Italian 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 by 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 in accordance with 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>

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

<p>In its meetings of June 1 and October 11, 2005, 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 CEO;</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 CEO &#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 Board 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
        CEO 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 projects
        amounting to over euro 100 million, such capital
        expenditure projects deemed to entail strategic impact
        and risks for the Group, and 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;
        and</td>
    </tr>
    <tr>
        <td valign="top">&nbsp;</td>
        <td valign="top">&nbsp;</td>
        <td valign="top">f)</td>
        <td valign="top">&nbsp;</td>
        <td valign="top">purchase and sale agreements for goods
        and services not intended as capital expenditure of
        amounts exceeding euro 1 billion and of a duration longer
        than 20 years;</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 CEO concerning voting and appointment of
        members of the Board of Directors and the Board of
        Statutory Auditors of major subsidiaries; and</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>In accordance with Article 27 of Eni&#146;s by-laws, the
Chairman chairs Shareholders&#146; Meetings, convenes and chairs
Board of Directors&#146; meetings and oversees the implementation
of decisions made by the Board of Directors.</p>

<p>In accordance with Article 23, paragraph 3 of Eni&#146;s
by-laws, the Chairman and the CEO report timely to the Board of
Statutory Auditors, at least quarterly and at each Board meeting,
on activities performed by and major transactions of Eni and its
subsidiaries.</p>

<p>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>

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

<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 of 3 to 9 members. The Shareholders&#146; Meeting
determines the number of Directors within said limits. As per
Article 6, paragraph 2, letter d) of Eni&#146;s by-laws the
Minister for Economy and Finance, in agreement with the Minister
of Productive Activities, may appoint one member of the Board
without voting right in addition to those appointed by the
Shareholders&#146; Meeting. The Minister for Economy and Finance
chose not to appoint a member at this time.</p>

<p>The appointment of the Board of Directors 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, as well as the
Board of Directors. 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 controlled companies 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 national newspapers and must
include a resume of each candidate.</p>

<p>On June 1, 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 the Chairman and
non executive Board members Alberto Cl&#244;, Renzo Costi, Dario
Fruscio, Marco Pinto, Marco Reboa, Mario Resca, and Pierluigi
Scibetta are independent as they do not have any economic
relationship with Eni and Eni Group companies, with the CEO 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 CEO. Director Marco Pinto is an
employee of the Ministry for Economy and Finance. The CEO of Eni
is an employee of Eni and holds the position of General Manager
of the parent company Eni SpA.</p>

<p>On March 30, 2006, the Board verified that its members were
independent on the basis of their own statements and that they
possess the honorability required by articles 147 ter and 147
quinquies of Legislative Decree No. 58 of February 24, 1998 and
included in Law No. 262 of December 28, 2005 (&quot;law for the
protection of savings&quot;) and acknowledged that its members
continued being independent as verified on June 1, 2005 and
possessing the honorability required by Law.</p>

<p>Eni&#146;s by-laws were amended by Eni&#146;s Extraordinary
Shareholders&#146; Meeting held on May 25, 2006 in order to
reflect the provisions of Law No. 262/2005. Amendments made on
that occasion established that Eni&#146;s Board members must have
honorability and independence requirements as required by the
norms in force for the Statutory Auditors (see below). At least
one Board member, if the Board members are no more than five, or
at least three Board members if they are more than five, shall
meet the independence requirement. The Board of Directors
evaluates periodically the independence and the honorability of
its members. If these requirements are not met by a Director and,
if the minimum number of independent Board members set by these
by-laws is not met, the Board of Directors removes a Board member
who does not meet the independence requirement and resolves to
appoint a substitute Director. At the date of the Meeting,
Eni&#146;s Board was already compliant with the honorability and
independence requirements of its members as prescribed by
applicable laws.</p>

<p>In addition Eni&#146;s by-laws, as amended on May 25, 2006,
established that the General Managers appointed by the Board must
possess the same honorability requirements as the members of the
Board, in order to make the appointment effective. The General
Managers not meeting such requirement shall be removed.</p>

<p>Eni&#146;s by-laws do not indicate a specific frequency of
meetings. In 2005 the Board of Directors met 21 times (18 in
2004) for an average length of four hours per meeting. The public
is informed of: (i) the dates of meetings convened for the
approval of interim results; (ii) the dates of general
Shareholders&#146; Meetings; and (iii) the dates when the amount
of interim dividends and final dividends are announced and
related payment dates.</p>

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

<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 CEO, 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 to be held by video or
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 the 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. During meetings directors
can meet managers of Eni and its subsidiaries in order to obtain
information on the features and the organization of their
businesses.</p>

<p>In 2005 on average 88% of Board members participated in Board
meetings. On average 85% of independent non executive Board
members.<br>
</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, composed
exclusively of independent, non-executive Board members, except
for Marco Pinto, a member of both committees, and the
International Oil Committee in which the CEO also participates.</p>

<p>In the meeting of June 1, 2005 membership of the Committees
was as follows:</p>

<p><i>Internal Control Committee:</i> Marco Reboa (Chairman),
Alberto , Renzo Costi, Marco Pinto and Pierluigi Scibetta.</p>

<p><i>Compensation Committee:</i> Mario Resca (Chairman), Renzo
Costi, Marco Pinto and Pierluigi Scibetta.</p>

<p><i>International Oil Committee: </i>Alberto Cl&#244; (Chairman),
Dario Fruscio, Marco Reboa and Paolo Scaroni.</p>

<p>The Code suggests the creation of a &quot;Nominating
Committee&quot; in 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, holds functions of supervision, counsel and
proposal in the area of monitoring general management issues.</p>

<p>In its meeting of June 1, 2005, the Board appointed Marco
Reboa as chairman of this Committee.</p>

<p>In its meeting of June 29, 2005 the Board approved its new
charter (available on Eni&#146;s internet site) in order to
modify its role in accordance with the Board&#146;s resolution of
March 22, 2005 that appointed the Board of Statutory Auditors to
perform the functions attributed by the Sarbanes-Oxley Act and
SEC rules to audit committees of U.S. issuers, within the limits
set by Italian legislation, from June 1, 2005.</p>

<p>In the course of 2005 the Internal Control Committee convened
14 times, with an average participation of 87% 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 and their progress; (ii) reviewed and
evaluated results of Eni SpA&#146;s and Group companies&#146;
internal auditing procedures; (iii) monitored the actions taken
and their effects aimed at eliminating the deficiencies
identified by audit reports; (iv) examined the results of audit
procedures applied to the framework agreement between Eni and
Gazprom/Gazexport of June 16, 2005; (v) 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 2004 financial statements with specific
reference to extraordinary transactions and relations among
functions entrusted with controlling functions at Eni SpA and its
subsidiaries; (vi) met the partners responsible of Eni&#146;s
external auditors for an analysis of Eni&#146;s 2005 Half Year
Report; (vii) examined the conditions necessary to avail itself
of the exemption from the Sarbanes-Oxley Act and the relevant
regulations concerning the Audit Committee; (viii) reviewed the
committee&#146;s charter; (ix)&nbsp;examined the report presented
by an internal the Watch Structure; (x) examined the reports
prepared in accordance with audit document No. 260 concerning the
communication of facts and events on auditing activities to those
responsible for governance; (xi) monitored the appointment of
additional functions to Eni&#146;s external auditors and
companies belonging to the network of the external auditors,
expressing its opinion; (xii) reviewed the situation of
appointments conferred in 2004 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; (xiv)
examined the organizational structure of the internal audit
functions with specific focus on operating audits; and (xv)
examined the information flows to the Internal Control Committee
from the various functions of Eni and its subsidiaries as well as
from external auditors.</p>

<blockquote>
    <p><i>Compensation Committee</i></p>
</blockquote>

<p>The Compensation Committee, established by the Board of
Directors in 1996, is entrusted with advising the Board in
relation to the compensation of the Chairman and CEO as well as
of the Board Committee members; examining the indications of the
CEO and presenting proposals on: (i) equity based incentive
plans; (ii) criteria for the compensation of top managers of the
Group; and (iii) objectives and results evaluation of performance
and incentive plans.</p>

<p>In its meeting of June 29, 2005 the Board approved its new
regulation (available on Eni&#146;s internet site) and appointed
Mario Resca as Chairman.</p>

<p>In 2005, the Compensation Committee met 7 times with an
average participation of 96% of its members, and accomplished the
following: (i) reviewed the objectives of the 2005 Group
Incentive Plan and the performance of 2004; (ii) drafted a
proposal to be submitted to the Board of Directors for
determining the variable part of the remuneration of the Chairman
and CEO based on 2004 performance; (iii) drafted a proposal based
on which the Board of Directors requested the Shareholders&#146;
Meeting to authorize it to use treasury shares for servicing
stock option and stock grant plans for 2005 (see &quot;Stock
compensation&quot; above); (iv) drafted a proposal submitted to
the Board of Directors concerning compensation related to the
termination of employment of Eni&#146;s former Managing Director
Vittorio Mincato; (v) examined the compensation to be paid to
Eni&#146;s new CEO Paolo Scaroni, employed by Eni with the
function of General Manager, in order to draft a proposal to
submit to the Board of Directors; and (vi)&nbsp;examined the
benchmarks for top management remuneration and reviewed the
criteria of the remuneration policy for Group managers, as well
as the stock option and stock grant plans in order to draft a
proposal to submit to the Board of Directors.</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>In its meeting of June 1, 2005, the Board approved its new
regulation (available on Eni&#146;s internet site) and appointed
Alberto Cl&#244; as Chairman of the Committee.</p>

<p>In 2005 the International Oil Committee met 3 times with a
100% participation of its members. The meetings concerned: (i) a
plan of activities aimed at analyzing the trends of the oil and
gas industry; (ii) an in-depth analysis of China in terms of
market prospects and effects on competition in the oil industry;
and (iii) an analysis of the structure and dynamics of oil and
gas markets on which to base the energy scenarios for Eni&#146;s
strategic plan.</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: (i) the respect
of laws and of Eni&#146;s memorandum of association; (ii) the
respect of the principles of proper administration; (iii) the
adequacy of the Company&#146;s organizational structure for the
parts concerning administration and accounting, internal controls
and administration and accounting systems as well as its
reliability in presenting information properly; and (iv) the
adequacy of regulations imposed to subsidiaries according to
Article 114, paragraph 2 of the mentioned decree. The law on the
protection of savings also entrusted the Board of Statutory
Auditors with the monitoring of the proper implementation of
corporate governance rules envisaged by the codes of conduct
published by the Italian stock exchange and the associations the
Company belongs to and with which the Company has declared its
intention to comply.</p>

<p>The Board of Directors in its meeting of March 22, 2005, in
accordance with SEC Rule 10A-(c)(3) for foreign companies listed
on the New York Stock Exchange, selected the Board of Statutory
Auditors to fulfil the role attributed to the audit committee of
a U.S. company under the Sarbanes-Oxley Act and other applicable
laws, within the limits set by the Italian legislation from June
1, 2005. On June 15, 2005, the Board of Statutory Auditors
approved the regulations for carrying out the functions
attributed to the audit committee under U.S. laws. This
regulation is published on Eni&#146;s internet site. The key
functions performed by the Board of Statutory Auditors acting as
an audit committee as provided for by SEC rules are as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">evaluating the proposals
        presented by the external auditors for their appointment
        and making its recommendation to the Board of Directors
        about the proposal for the appointment or the retention
        of the external auditor to be submitted to the
        Shareholders&#146; Meeting;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">performing the activities of
        oversight of the work of the external auditor engaged for
        the audit or performing other audit, review or attest
        services;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">making recommendations to
        the Board of Directors on the resolution of disagreements
        between management and the auditor regarding financial
        reporting;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">approving the procedures
        for: (a) the receipt, retention, and treatment of
        complaints received by the Company regarding accounting,
        internal accounting controls, or auditing matters; and
        (b) the confidential, anonymous submission by employees
        of the Company of concerns regarding questionable
        accounting or auditing matters;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">approving the procedures for
        the pre-approval of admissible non-audit services,
        analytically identified, and examine the information on
        the execution of the authorized services;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">evaluating any request to
        have recourse to the external auditor engaged for the
        audit for admissible non audit services and expresses its
        opinion to the Board of Directors;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">examining the periodical
        communications from the external auditor relating to: (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 of the Company, ramifications of the use of
        such alternative disclosures and treatments, and the
        treatment preferred by the external auditor; and (c)
        other material written communication between the external
        auditor and the management;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">examining complaints
        received by the CEO and the CFO concerning any
        significant deficiency in the design or operation of
        internal controls which could adversely affect the
        Company&#146;s ability to record, process, summarize and
        report financial data and any material weakness in
        internal controls; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">examining complaints
        received by the CEO and the CFO concerning any fraud that
        involves management or other employees who have a
        significant role in the issuer&#146;s internal controls.</td>
    </tr>
</table>

<p>The Board can engage external advisors or other experts to the
extent it determines necessary to carry out its duties. The Board
is provided with the funds it deems necessary for payment of
compensation to independent advisors or other experts and of
ordinary administrative expenses involved by the execution of the
Board&#146;s duties.</p>

<p>The Board of Statutory Auditors comprises five auditors and
two substitute auditors, appointed by the Shareholders&#146;
Meeting for a three year term.</p>

<p>On May 27, 2005, Eni&#146;s Shareholders&#146; Meeting
appointed the following statutory auditors for three years and
however until the Shareholders&#146; Meeting approving financial
statements for fiscal year 2007: Paolo Andrea Colombo (Chairman),
Filippo Duodo, Edoardo Grisolia, Riccardo Perotta and Giorgio
Silva. Francesco Bilotti and Massimo Gentile are alternate
auditors. A curriculum of these auditors is published on
Eni&#146;s internet site. The same Meeting also determined the
yearly compensation for the Chairman of the Board of Statutory
Auditors and each Auditor amounting to euro 115,000 and euro
80,000, respectively.</p>

<p>Paolo Andrea Colombo, Filippo Duodo, Edoardo Grisolia and
Francesco Bilotti were candidates in the list presented by the
Ministry of Economy and Finance; Riccardo Perotta, Giorgio Silva
and Massimo Gentile were candidates in the list presented by
institutional investors coordinated by Fineco Asset Management
SpA.</p>

<p>Statutory Auditors are appointed in accordance with Eni&#146;s
by-laws with a list vote; at least two auditors and one
substitute are chosen from minority candidates. Chairman of the
Board is the first candidate of the list that received the
highest number of votes. 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, consistent 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 meeting 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>Article 28 of Eni&#146;s by-laws also prohibits the
appointment as statutory auditor of persons that are statutory
auditors or members of the supervisory board or members of the
control committee of at least five companies listed in regulated
markets that are not subsidiaries of Eni SpA. At least two
effective Auditors are empowered to convene the
Shareholders&#146; Meetings and at least one effective Auditor is
empowered to convene the Board meetings.</p>

<p>Statutory auditors receive in advance of meetings of the Board
of Directors adequate and thorough information on all issues
subject to Board evaluation and resolutions.</p>

<p>Eni&#146;s by-laws allow meetings to be held by
teleconference.</p>

<p>In 2005 the Board met 22 times with an average participation
of 83% of its members.</p>

<p>In 2005, Eni&#146;s external auditors met with Eni statutory
auditors 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; and (iii) the
contents of any other material written communication between
external auditors, and management.</p>

<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.<br>
</p>

<blockquote>
    <p><b><i>Significant differences in corporate governance
    practices as per Section 303A.11 of the New York Stock
    Exchange Listed Company Manual</i></b></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 in 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
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 U.S. 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 U.S. domestic
companies under the NYSE standards and those followed by Eni.</p>

<p>INDEPENDENT DIRECTORS<br>
<i>NYSE Standards</i> Under NYSE standards listed U.S.
companies&#146; Boards must have a majority of independent
directors. A director qualifies as independent when the Board
affirmatively determines that such director does not have a
material relationship with the listed company (and its
subsidiaries), either directly, or indirectly. In particular, a
director may 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 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 taking 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 2005, 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. Director
Marco Pinto is an employee of the Ministry of Economy and
Finance.</p>

<p>MEETINGS OF NON EXECUTIVE DIRECTORS<br>
<i>NYSE Standards</i> Non-executive directors, including those
who are not independent, must meet at regularly scheduled
executive sessions without management. In addition, 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>

<p>AUDIT COMMITTEE<br>
<i>NYSE Standards</i> Listed U.S. 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-U.S. private issuers, has
identified the Board of Statutory Auditors as the body that,
starting from June 1, 2005, is performing the functions required
by the SEC rules and the Sarbanes-Oxley Act to be performed by
the audit committees of non-U.S. 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 U.S. companies have further functions and
responsibilities which are not mandatory for non-U.S. private
issuers and which therefore are not included in the list of
functions shown in the paragraph referenced above.</p>

<p>NOMINATING/CORPORATE GOVERNANCE COMMITTEE<br>
<i>NYSE standards</i> U.S. 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-U.S. 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&#146;
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>

<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 members&#146; compensation is determined by the
Shareholders&#146; Meeting, while remuneration levels of the
Chairman and CEO are determined by the Board of Directors, based
on proposals of the Compensation Committee and after consultation
with the Board of Statutory Auditors.</p>

<p>Key element of the compensation of the Chairman, the CEO, the
other members of the Board and of Eni&#146;s three General
Managers are outlined as follows.</p>

<p>CHAIRMAN<br>
The compensation of the Chairman of the Board of Directors has
been resolved by Eni&#146;s Shareholders&#146; Meeting of May 27,
2005 and it includes:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a fee of euro 265,000 and
        reimbursement of out of pocket expenses; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a variable amount up to a
        maximum of euro 80,000 to be paid in accordance with
        Eni&#146;s positioning among the eight largest
        international oil companies for market capitalization in
        terms of total return to shareholders in the previous
        year.</td>
    </tr>
</table>

<p>With respect to the powers delegated to the Chairman, the
Board of Directors determined further compensation, as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a fee of euro 500,000; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a variable amount dependent
        on reaching the objectives identified by the Board of
        Directors on proposal of the Compensation Committee. The
        target level of such variable amount is 50% of the fixed
        amount under a) above.</td>
    </tr>
</table>

<p>Compensation of the Chairman also includes an insurance
against death or permanent inability caused by injury or sickness
in the exercise of his duties or under certain other
circumstances as stipulated collectively for all managers of
Italian companies producing goods and services. In particular, a
specific insurance policy has been underwritten which guarantees
euro 500,000 to survivors with an annual charge for Eni of euro
8,000.</p>

<p>In 2005 the Chairman received a total compensation amounting
to euro 871,000.</p>

<p>CEO<br>
Compensation for Paolo Scaroni has been resolved by the Board of
Directors of Eni in connection with his position both as Chief
Executive Officer (&quot;CEO&quot;) and as General Manager of Eni
SpA. He was appointed to both positions on June 1, 2005.</p>

<p>As General Manager of Eni SpA, his terms of employment are
regulated by the &quot;Contratto collettivo nazionale di lavoro
per i dirigenti di aziende produttrici di beni e servizi&quot;
(the Italian national collective contract for managers of
manufacturing companies), as well as by any internal agreement
stipulated by the representatives of managers and Eni SpA. He may
be appointed as board member of Eni&#146;s subsidiaries and
affiliates; compensation as provided for by Article No. 2389 of
the Italian Civil Code deriving from such appointments is to be
repaid to Eni as it is included in his remuneration under section
a) below.</p>

<p>Compensation includes the following:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a fixed amount of euro
        1,430,000, of which a salary of euro 1,000,000 for the
        services as General Manager and a fee of euro 430,000 for
        the services as CEO. In 2005, the amount received by Mr.
        Scaroni was of euro 840,000 relating to the period June
        1-December 31;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a variable amount dependent
        on reaching the objectives identified by the Board of
        Directors on proposal of the Compensation Committee. The
        maximum of such variable amount is 100% of the fixed
        amount under a) above. This incentive will be paid from
        2006 onwards;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">c)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">yearly assignment of grants
        to receive Eni stocks for no consideration in the
        2006-2008 period, vesting after three years from the
        assignment, dependent on reaching the objectives
        identified by the Board of Directors on proposal of the
        Compensation Committee. The target level of such amount
        of stock grant is 50% of the fixed amount under a) above.
        This incentive is effective starting from 2006. For
        details of Eni stock grant plan, see below;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">d)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a yearly assignment of stock
        options in the 2005-2007 period for a facial value
        corresponding to 11 times the fixed amounts under section
        a) above for the 2005-2007 period. Options are assigned
        at an exercise price corresponding to the market value at
        the date of assignment (average of the market prices of
        the preceding month) and can be exercised beginning from
        three years after the assignment and within the following
        five years. In 2005, a total of 699,000 options were
        assigned at an exercise price of euro 22.509. For details
        of Eni stock option plan, see below;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">e)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">severance payment as
        regulated by Italian laws, which consists in yearly
        accruals to the reserve for employee benefits that will
        be paid by the company to the employee when employment
        ceases. Each annual accrual corresponds to the yearly
        remuneration received as General Manager (fixed and
        variable amounts and stock grants assigned) divided by
        13.5. These amounts are revaluated yearly at a fixed rate
        of 1.5% plus the 75% of the yearly official consumer
        price index increase;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">f)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">as an integration to the
        severance payment described above, should the employment
        contract of Mr. Scaroni as General Manager of Eni SpA be
        terminated upon expiry of the term of his office as CEO or
        upon earlier termination of such office, he will be
        entitled to receive a lump sum of euro 7 million, which
        is also intended as waiver to any obligation related to
        advance notice of termination. This integration will not
        be paid if the termination of office meets the
        requirement of due cause as per Article No. 2119 of the
        Italian Civil Code, in case of death and in case of
        resignation from office other than as the result of a
        reduction in the powers currently attributed to the CEO.
        Upon termination of employment Eni will also pay an
        amount corresponding to the social security payments and
        severance payment accruals as applied to the fixed amount
        and to 50% of the variable part of the compensation
        received as CEO. To this end Eni accrues a yearly
        provision of euro 204,737.93;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">g)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">competition clause: the CEO
        agrees not to be engaged, on his own account and
        directly, in any business that may be in competition with
        the businesses of Eni, as per its by-laws, in Italy,
        Europe and North America for a year after termination of
        office. In consideration for this agreement, Eni will pay
        a fee corresponding to the yearly fixed amounts under a)
        section above. As a consequence of any breach of this
        clause, the CEO would loose the right to such fee or
        should reimburse any amount already paid, and shall pay
        to Eni damages in an amount agreed among the parties to
        correspond to twice such non-competition fee;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">h)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the pension scheme
        corresponds to the scheme applied to Eni managers and
        provided by INPS (the Italian state social security
        entity) to all Italian workers. In addition, the CEO is
        included in an additional pension scheme under the form
        of an Eni group pension fund agreed collectively by Eni
        and Eni managers which provides an integration, in the
        form of a lump sum payment or a perpetuity, to the
        pension paid by the State. This integration is
        proportional to contributions to the fund made by both
        the manager and the Company in equal amounts. The
        integration is assigned to the manager when eligible for
        the payment of the pension from the State, provided that
        a minimum time period has elapsed according to the fund
        by-laws. An agreement signed on March 20, 2006,
        established that the Company&#146;s and the
        manager&#146;s payment to this Fund amounts to 3.5% of
        the total salary of the CEO as General Manager (i.e., the
        aggregate of the fixed amount, the variable amount and
        the stock grants up to a maximum of euro 200,000);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">i)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">like all other Eni managers,
        Mr. Scaroni is entitled to participate in a health
        insurance Fund financed by Eni managers and Eni which
        provides reimbursement of certain medical expenses on the
        basis of rules and parameters as provided for by the
        Fund&#146;s by-laws; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">j)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">insurance against death or
        permanent inability caused by injury or disease in the
        exercise of his duties or under certain other
        circumstances as stipulated collectively for all managers
        of Italian manufacturing companies. In particular a
        specific insurance policy has been underwritten on behalf
        of Mr. Scaroni which guarantees euro 7.5 million to
        survivors in case of death, however determined, with an
        annual charge for Eni of euro 62,000.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>MEMBERS OF THE BOARD OF DIRECTORS<br>
The compensation of members of the Board of Directors has been
determined by Eni&#146;s Shareholders&#146; Meeting of May 27,
2005 and includes:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a fee of euro 115,000 and
        reimbursement of out of pocket expenses; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a variable amount up to a
        maximum of euro 20,000 to be paid in accordance with
        Eni&#146;s positioning among the eight largest
        international oil companies for market capitalization in
        terms of total return to shareholders in the previous
        year.</td>
    </tr>
</table>

<p>GENERAL MANAGERS<br>
The terms of employment of the General Managers of Eni&#146;s
Divisions are regulated by the &quot;Contratto collettivo
nazionale di lavoro per i dirigenti di aziende produttrici di
beni e servizi&quot; (the Italian national collective contract
for managers of companies producing goods and services), as well
as by any internal agreement stipulated by the representatives of
managers and Eni SpA. The General Managers of Divisions may be
appointed as members of the Board of Directors of Eni
subsidiaries and affiliates; compensation deriving from such
appointments as provided for by article No. 2389 of the Italian
Civil Code is to be repaid to Eni as it is included in their
remuneration under section a) below.</p>

<p>Their remuneration includes:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a salary, reviewed on July 1
        of each year taking into account the consistency of
        performance over time as well as certain market
        benchmarks;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a yearly cash incentive of
        up to approximately 60% of the salary dependent upon
        objectives identified for each business area;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">c)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a yearly assignment of
        grants to receive Eni stock for no consideration, vesting
        after three years from the assignment, dependent upon
        achieving the objectives identified by the Board of
        Directors based upon the proposal of the Compensation
        Committee. The target level of such amount of stock grant
        is 35% of the salary. For details of Eni stock option
        plan, see below;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">d)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">a yearly assignment of stock
        options in the 2005-2007 period for a facial value corresponding
        to 2 times the salary. Options are assigned at an
        exercise price corresponding to the market value at the
        date of assignment (average of the market prices of the
        preceding month) and can be exercised beginning three
        years after the assignment and within the following five
        years. Options assigned in 2005 had an exercise price of
        euro 22.509. For details of Eni stock option plan, see
        below;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">e)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">severance payment as
        regulated by Italian laws, which consists in yearly
        accruals to the reserve for employee benefit that will be
        paid by the company to the employee when employment
        ceases. Each annual accrual corresponds to the yearly
        remuneration received as general manager divided by 13.5.
        These amounts are revaluated yearly at the rate of 1.5%
        plus the 75% of the official yearly consumer price index
        increase;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">f)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">the pension scheme
        corresponds to the scheme applied to Eni managers and
        provided by INPS to all Italian workers. In addition, the
        General Managers are included in the additional pension
        scheme of Eni managers which provides an integration to
        the public pension. For further details see section h) of
        the description of compensation of the CEO;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">g)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">like all other Eni managers,
        they are entitled to participate in a health insurance
        Fund financed by Eni managers and Eni which provides
        reimbursement of certain medical expenses on the basis of
        rules and parameters as provided for by the Fund&#146;s
        by-laws. For further details see section i) of the
        description of compensation of the CEO; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">h)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">insurance against death or
        permanent inability caused by injury or disease in the
        exercise of his duties or under certain other
        circumstances as stipulated collectively for all managers
        of Italian manufacturing companies.</td>
    </tr>
</table>

<p>With the expection of the CEO as described above, none of the
Directors of Eni has service contracts with the company or any of
its subsidiaries providing for benefits upon termination of
employment.</p>

<p>Pursuant to Article 78 of Consob Decision No. 11971 of May 14,
1999, compensation of Directors and Statutory Auditors of Eni and
general managers of Eni&#146;s divisions, who held the position
in 2005 including for a fraction of the year, are reported in the
table below.</p>

<p>Pursuant to Consob decisions:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">&quot;Compensation in
        respect of positions held at Eni SpA&quot; are set by the
        Shareholders&#146; Meeting and the remuneration of the
        Chairman and the CEO is determined by the Board of
        Directors, in agreement with the Board of Statutory
        Auditors, in accordance with Article 2389, paragraph 3 of
        the Italian civil code;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">&quot;Non cash
        benefits&quot; refer to all fringe benefits, including
        insurance policies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">&quot;Bonuses and other
        incentives&quot; includes the variable part of the
        Chairman&#146;s compensation and the variable part of the
        salary of the CEO and of the general managers of
        Eni&#146;s divisions; and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">&quot;Other
        compensation&quot; include the salary of the previous and
        the current managing director and of the general managers
        of Eni&#146;s divisions, in addition to compensations due
        in respect of positions on the Boards of Statutory
        Auditors in Eni&#146;s subsidiaries. Indemnities paid
        upon termination are also included.</td>
    </tr>
</table>

<p style="page-break-before:always">The following table contains
details of compensation of directors, statutory auditors and
general managers.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="24%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" colspan="2" width="12%"><p
        align="center"><font size="1"><b>Position</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Term of office</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" colspan="2" width="9%"><p
        align="right"><font size="1"><b>Expiry date of the
        position </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>Compensation for service at Eni SpA</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><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="6%"><p align="center"><font
        size="1"><b>Bonuses and other incentives </b><sup>(2)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Other compensations</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="24%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" colspan="2" width="12%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" colspan="2" width="9%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </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="39%"><p align="center"><font
        size="1"><b>(thousand euro)</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2"><b>Board of Directors</b></font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Roberto Poli</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Chairman</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">831</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">40</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">879</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Vittorio Mincato </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">CEO</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-05.27</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">230</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">1,386</font></p>
        </td>
        <td valign="bottom" width="2%" height="14"><p
        align="right"><font size="2"><sup>(3)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="right"><font size="2">9,649</font></p>
        </td>
        <td valign="bottom" width="2%" height="14"><p
        align="right"><font size="2"><sup>(4)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">11,265</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Paolo Scaroni</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">CEO</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">06.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><sup>(5)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">588</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">902</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Mario Giuseppe Cattaneo </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-05.27</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">57</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">67</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Alberto Cl&#244; </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">123</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">133</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Renzo Costi </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">122</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">132</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Dario Fruscio </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">117</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">127</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Guglielmo Moscato </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-05.27</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">59</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">69</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Mario Resca </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">131</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Marco Pinto</font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.28-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">68</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">68</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Marco Reboa</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.28-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">68</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">68</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Pierluigi Scibetta</font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Director</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.28-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">68</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">68</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2"><b>Board of Statutory Auditors
        </b><sup>(6)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Andrea Monorchio </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Chairman</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-05.27</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">51</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">51</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Paolo Andrea Colombo</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Chairman</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><sup>(7)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">67</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">174</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Luigi Biscozzi </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Auditor</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-05.27</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">38</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="right"><font size="2">51</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">89</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Filippo Duodo </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Auditor</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">55</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">146</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Edoardo Grisolia <sup>(8)</sup></font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Auditor</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.28-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">48</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">48</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Riccardo Perotta </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">Auditor</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">59</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">151</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Giorgio Silva</font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">Auditor</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.28-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">05.30.08</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">48</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14">&nbsp;</td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">61</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2"><b>General Managers</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Stefano Cao </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">E&amp;P Div.</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">397</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="right"><font size="2">797</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">1,194</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14"><font size="2">Luciano Sgubini </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">G&amp;P Div.</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">311</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">2,286</font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><sup>(9)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2">2,597</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" height="14"><font
        size="2">Angelo Taraborrelli </font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="10%" height="14"><p
        align="right"><font size="2">R&amp;M Div.</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="right"><font size="2">01.01-12.31</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="4%" height="14"><p
        align="right"><font size="2">229</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="right"><font size="2">566</font></p>
        </td>
        <td valign="bottom" width="2%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="6%" height="14"><p
        align="right"><font size="2">795</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="24%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><b>2,591</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><b>70</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><b>2,423</b></font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><b>14,131</b></font></p>
        </td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="14">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="14"><p align="right"><font size="2"><b>19,215</b></font></p>
        </td>
    </tr>
</table>

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

<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">The term of
        position ends with the Meeting approving financial
        statements for the year ending December 31, 2007.</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">Based on
        performance achieved in 2004.</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">Based on
        performance achieved in 2004 and pro rata performance
        related to the first five month period of 2005.</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 addition
        to salary also includes indemnities paid upon termination
        and further compensation determined by the Board of
        Directors.</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">Appointed as
        director on May 28, 2005.</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">The
        &quot;Other Compensation&quot; amounts refer to
        compensation obtained as chairman or as auditor of
        subsidiaries.</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">Appointed as
        Chairman on May 28, 2005. Previously Auditor.</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">Compensation
        for the service is paid to the Ministry of Economy and
        Finance.</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">In addition
        to salary also includes indemnities paid upon
        termination.</font></td>
    </tr>
</table>

<p>For the year ended December 31, 2005, the aggregate
compensation paid to or on behalf of the executive officers of
Eni SpA was euro 20.06 million. The foregoing amounts include
salaries, fees for attending meetings, lump-sum amounts paid in
lieu of expense reimbursements, stock options, stock grants,
health and pension contributions and 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, 2005, 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 3.36 million.<br>
</p>

<blockquote>
    <p><b><i>Stock compensation</i></b></p>
</blockquote>

<blockquote>
    <p><i>Stock grants</i></p>
</blockquote>

<p>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, beginning in
2003, Eni has offered its own shares purchased under its buy-back
program (treasury shares) for no consideration to those managers
of Eni SpA and its subsidiaries as defined in Article 2359 of the
Civil Code<a href="#(16)"><sup>15</sup></a> who have achieved
corporate and individual objectives.</p>

<p>Assignments vest within 45 days after the end of the third
year from the date of the offer.</p>

<p>Under this stock grant plan, on December 31, 2005 a total of
3,127,200 grants were outstanding for the assignment of an equal
amount of treasury shares (equal to 0.08% of current capital
stock) subdivided as follows: (i)&nbsp;a total of 1,018,400
grants (fair value euro 11.20 per share) related to 2003; (ii) a
total of 912,400 grants (fair value euro 14.57 per share) related
to 2004; and (iii) a total of 1,196,400 grants (fair value euro
20.08 per share) related to 2005.</p>

<blockquote>
    <p><i>Stock options</i></p>
</blockquote>

<p>Eni offers to managers of Eni SpA and its subsidiaries as
defined in Article 2359 of the Civil Code<a href="#(17)"><sup>16</sup></a>
who hold positions of significant responsibility for achieving
profitability or strategic targets, the opportunity to acquire a
shareholding in the Company as an element of remuneration through
the assignment of options for the purchase of Eni&#146;s treasury
shares.</p>

<p>Options provide grantees with the right to purchase Eni shares
on a 1 to 1 ratio after three years from the date of the grant
and upon a five year vesting period, 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 grant and the average cost of the treasury shares as
of the day prior to the assignment (strike price). Strike price
for the 2005 assignment was euro 22.512 per share.</p>

<p>Grantees are able to make use of an advance from a Group
finance company to purchase shares, on condition that at the same
time they sign an irrevocable order for selling the shares
through the finance company. Proceeds from the sale must then be
used to repay the advance.</p>

<p>At December 31, 2005 there were 13,379,600 outstanding
options, carrying an average strike price of euro 17.705 per
share.</p>

<p>The weighted-average remaining contractual life of options
outstanding at December 31, 2003, 2004 and 2005 was 5.6 years,
6.6 years and 7.6 years, respectively. All stock options granted
are considered fixed.</p>

<p>The following is a summary of stock option activity for the
years 2003, 2004 and 2005:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%">&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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Weighted average
        exercise price</b><sup> (a)</sup><b> (euro)</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Weighted average
        exercise price</b><sup> (a)</sup><b> (euro)</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Weighted average
        exercise price</b><sup> (a)</sup><b> (euro)</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="53%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="52%"><font size="2"><b>Options
        as of January 1</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>3,518,500</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>15.216</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>8,162,000</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>14.367</b></font></td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>11,789,000</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>15.111</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">New options granted </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">4,703,000</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">13.743</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">3,993,500</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">16.576</font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">4,818,500</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">22.512</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Options
        exercised in the period </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(354,000</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">14.511</font></td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">(3,106,400</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2">15.364</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Options cancelled in the period </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(59,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">15.216</font></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="6%"
        bgcolor="#EEEEEE"><font size="2">(12,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">14.450</font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">(121,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2">16.530</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2"><b>Options
        outstanding as of December 31</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>8,162,000</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>14.367</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>11,789,000</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>15.111</b></font></td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>13,379,600</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="2"><b>17.705</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2"><b>of which exercisable at December 31</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>73,000</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>14.802</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>-</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>-</b></font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="2"><b>1,540,600</b></font></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="6%"
        bgcolor="#EEEEEE"><font size="2"><b>16.104</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="53%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td align="center" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Below quoted
        market price.</font></td>
    </tr>
</table>

<p>The fair value of stock options granted during the years ended
December 31, 2003, 2004 and 2005 of euro 1.50, euro 2.01 and euro
3.33, respectively, was calculated applying the Black-Scholes
method and using the following assumptions:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%"><font size="2"><b>Fair
        value of stock options</b></font></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>
        <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" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="58%"><font size="2">Risk-free
        interest rate</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="17%"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.16</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3.21</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2.51</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="2">Expected life</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="17%"
        bgcolor="#EEEEEE"><font size="1">(year)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="2">Expected
        volatility</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="17%"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">22</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">19</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">21</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="2">Expected dividends</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="17%"
        bgcolor="#EEEEEE"><font size="1">(%)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">5.35</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4.5</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3.98</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="37%"><font size="2"><b>Stock
        grant for Eni&#146;s CEO and general managers</b></font></td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Grants outstanding at beginning of the period</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Grants assigned during the period</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Grants exercised during the period</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Grants outstanding at end of the period</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="37%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="36%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of grants</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Average maturity in
        months</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of grants</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Average maturity in
        months</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of grants</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Average market price at
        date of exercise (euro)</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Number of grants</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><p
        align="center"><font size="1"><b>Average maturity in
        months</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="36%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="15%"><font size="2">Vittorio
        Mincato <sup>(1)</sup></font></td>
        <td valign="bottom" colspan="2" width="22%"><font
        size="2">CEO</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">104,800</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">40,200</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">38</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">145,000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">19.951</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Stefano Cao</font></td>
        <td valign="bottom" colspan="2" width="22%"
        bgcolor="#EEEEEE"><font size="2">General Manager of the
        E&amp;P Division</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40,500</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">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">16,000</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">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">12,800</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">23.785</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43,700</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">21</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Luciano
        Sgubini</font></td>
        <td valign="bottom" colspan="2" width="22%"><font
        size="2">General Manager of the G&amp;P Division</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">40,500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">20</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">16,000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">38</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">56,500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">22.784</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Angelo Taraborrelli</font></td>
        <td valign="bottom" colspan="2" width="22%"
        bgcolor="#EEEEEE"><font size="2">General Manager of the
        R&amp;M Division</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17,500</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">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">16,000</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">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">5,400</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">23.785</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,100</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">24</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="36%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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">Retired on
        May 27, 2005.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%"><font size="2"><b>Stock
        options for Eni&#146;s CEO and general managers</b></font></td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>CEO </b><sup>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>CEO </b><sup>(2)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>General Manager for the E&amp;P Division</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>General Manager for the G&amp;P Division</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>General Manager for the R&amp;M Division</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1">Paolo Scaroni</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1">Vittorio Mincato</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1">Stefano Cao</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1">Luciano Sgubini</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1">Angelo Taraborrelli</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="38%"><font size="2">Options
        outstanding at the beginning of the period:</font></td>
        <td 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="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- number of options </font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">499,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">182,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">170,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">96,500</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">- average
        exercise price</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">-</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.090</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.185</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.086</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.379</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- average maturity in months</font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">67</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">79</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">79</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">81</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Options
        granted during the period:</font></td>
        <td 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="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- number of options </font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">699,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">75,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">60,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">50,000</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">- average
        exercise price</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">22.509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">-</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">22.509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">22.509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">22.509</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- average maturity in months</font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">96</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Options
        exercised at the end of period:</font></td>
        <td 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="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- number of options </font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">499,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">56,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">230,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">23,500</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">- average
        exercise price</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">-</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.090</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.216</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">17.035</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.216</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- average market price at date of exercise</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><font size="1">(euro)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">19.980</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">22.784</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">22.964</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">22.784</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Options
        outstanding at the end of the period:</font></td>
        <td 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="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- number of options </font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">699,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">201,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">123,000</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">- average
        exercise price</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><font
        size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">22.509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">-</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">17.920</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">-</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">18.308</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">- average maturity in months</font></td>
        <td valign="bottom" width="1%" 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="10%"
        bgcolor="#EEEEEE"><font size="2">91</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">82</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">-</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">83</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">&nbsp;</td>
        <td 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="10%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

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

<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>
</table>

<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">Appointed on
        June 1, 2005.</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">Retired on
        May 27, 2005.</font></td>
    </tr>
</table>

<p>The table below sets forth the amount and maturity of stock
options granted to Eni&#146;s executive officers in 2005:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="63%">&nbsp;</td>
        <td align="center" valign="bottom" width="18%"><p
        align="center"><font size="1"><b>Options granted<br>
        in the year</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="18%"><p
        align="center"><font size="1"><b>Options held<br>
        at year end </b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="63%">&nbsp;</td>
        <td align="center" valign="bottom" width="18%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="18%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Number of options</font></td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE"><font size="2">1,350,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE"><font size="2">2,329,500</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Average
        exercise price </font></td>
        <td align="right" valign="bottom" width="10%"><font
        size="1">(euro) </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><font
        size="2">22.509</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><font
        size="2">19.217</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Maturity </font></td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="1">(days) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE"><font size="2">1,096</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE"><font size="2">707</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Expiration
        </font></td>
        <td align="right" valign="bottom" width="10%"><font
        size="1">(days) </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><font
        size="2">2,923</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><font
        size="2">2,498</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Weighted average exercise price for options
        existing as of December 31, 2005 </font></td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="1">(euro)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE"><font size="2">15.231</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="18%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<p>The information in the table above is current as of June 5,
2006. No additional options have been granted from December 31,
2005 to that date. Eni issues only ordinary shares. For further
information on Eni&#146;s stock compensation see Note 26 to the
Consolidated Financial Statements.</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
regularly 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 from
investor.relations@eni.it.</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 from segreteriasocietaria.azionisti@eni.it
and the toll-free number 800940924 (Outside Italy 80011223456).</p>

<p>Information regarding periodic 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>On February 28, 2006, Eni&#146;s Board of Directors updated
the &quot;Procedure for the disclosure of information to the
market concerning Group activities&quot; approved on December 18,
2002 and 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 and those included in the laws
implementing the European Directive on market abuse, 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 in accordance with the crimes identified and
sanctioned by the new law on the protection of savings.</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>On February 28, 2006 the Board of Directors approved a
procedure concerning the creation and updating a register of
persons with a right to access privileged information at Eni, as
provided for by Article 115 of Legislative Decree No. 58 of
February 24, 1998 which states that &quot;listed issuing
companies and the subjects who have a control relation with them,
or acting in their name, must establish and regularly update a
register of the persons that, due to their professional activity
or functions performed have access to information as described in
Article 114 (privileged information)&quot;. The procedure
implementing Consob Decision No. 11971/1999, as amended, defines:
(i) terms and procedures for the recording and possible
cancellation of the persons that, due to their professional
activity or functions performed on behalf of Eni, have access to
privileged information; and (ii) terms and procedures of
information of said persons of their recording or cancellation
and relevant reasons. The procedure became effective on April 1,
2006.</p>

<p>In the same meeting the Board approved the &quot;Internal
dealing procedure&quot; for the identification of relevant
persons and the communication of transactions involving financial
instruments issued by Eni SpA and its listed subsidiaries, which
substitutes the Internal Dealing Code approved by the Board on
December 18, 2002.</p>

<p>The procedure implements the provisions of Article 114,
paragraph 7 of Legislative Decree No. 58 of February 24, 1998
which states that &quot;subjects performing administration,
control or management activities for a listed issuer and managers
having regular access to privileged information as per paragraph
1 and having the power to make operating decisions that can
affect the development and future situation of the issuer and
whoever holds shares corresponding to at least 10% of the
company&#146;s share capital and any other person controlling the
issuer are obliged to inform Consob and the market of any
transaction involving financial instruments issued by the issuer,
also when performed by others on their behalf.&quot; This
communication is due also by spouses not legally separated,
children, parents, relatives living with the subject and in the
other cases indicated by Consob in implementation of Directive
2004/72/CE of the European Commission. Eni&#146;s procedure: (i)
identifies relevant persons; (ii) defines the transactions
involving financial instruments issued by Eni SpA; (iii)
determines the terms and conditions for the disclosure to the
public of such information; and (iv) reports the sanctions
introduced by the law for the case of non compliance. The
procedure that became effective on April 1, 2006 is published on
Eni&#146;s internet site.</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, 2005, Eni&#146;s employees numbered 72,258
representing an increase of 1,910 employees from December 31,
2004, or 2.7%, reflecting a 2,479 increase in employees hired and
working outside Italy and a 569 decline in employees hired in
Italy.</p>

<p>Employees hired in Italy were 40,192 (55.6% of all Group
employees), of these 37,493 were working in Italy, 2,480 outside
Italy and 219 on board of vessels. As compared to 2004, the 569
unit decline in employees was due mainly to changes in
consolidation (723 employees, due to the divestment of the water
business, IP and technical services at Porto Marghera) offset in
part by the positive balance of persons leaving their job and new
hirings and net transfers from unconsolidated subsidiaries.</p>

<p>The process of improvement in the quality mix of employees
continued in 2005 with the hiring of 2,099 persons, of which 727
were hired with open-end contracts. A total of 1,372 persons were
hired with this type of contract and with apprenticeship
contracts, most of them with university qualifications (800
persons of which 509 are engineers) and 533 persons with a high
school diploma. During the year 2,027 persons left their job at
Eni, of these 1,438 had an open-end contract and 589 a fixed-term
contract.</p>

<p>Employees hired and working outside Italy at December 31, 2005
were 32,066 (44.4% of all Group employees), with an increase of
2,479 persons due to the positive balance of new hirings with
open-end contracts and persons leaving their job in Saipem and
Snamprogetti (2,639 employees) and the negative balance (160
persons) of persons leaving the job and new hirings with open-end
contracts in the rest of the Group.</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>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>
        <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 width="77%">&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="76%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,492</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,477</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,491</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12,982</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12,843</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12,324</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13,277</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">9,224</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,894</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">7,050</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,565</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,462</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">25,583</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">25,819</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">28,684</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,380</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,983</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,638</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,657</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,437</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,765</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="76%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>75,421</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>70,348</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>72,258</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
    </tr>
</table>

<p style="page-break-before:always">The table below sets forth
Eni&#146;s employees at December 31, 2003, 2004 and 2005 in Italy
and outside Italy:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="76%">&nbsp;</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>
        <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" width="76%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" align="left"
        noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" colspan="5"><p align="center"><font
        size="1"><strong>(units)</strong></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><font size="2">Exploration
        &amp; Production </font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,555</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,539</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,510</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,937</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,938</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,981</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,492</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,477</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,491</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><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 align="right" valign="bottom" width="7%"><font
        size="2">10,302</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">10,216</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">9,733</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,680</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,627</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,591</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,982</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,843</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">12,324</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,882</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,879</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">6,680</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,395</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,345</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,214</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13,277</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">9,224</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">8,894</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><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 align="right" valign="bottom" width="7%"><font
        size="2">5,585</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,237</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,164</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,465</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,328</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,298</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">7,050</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,565</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,462</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,314</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,580</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">5,799</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">20,269</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">20,239</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22,885</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">25,583</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">25,819</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">28,684</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><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 align="right" valign="bottom" width="7%"><font
        size="2">6,367</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,959</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">4,616</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">13</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">6,380</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,983</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">4,638</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Corporate
        and financial companies</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">2,577</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,351</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">3,683</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">80</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">86</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">82</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">2,657</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,437</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">3,765</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><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 align="right" valign="bottom" width="7%"><font
        size="2">41,582</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">40,761</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">40,185</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">33,839</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">29,587</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">32,073</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>75,421</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>70,348</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2"><b>72,258</b></font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" 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 align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,733</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,764</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">1,748</font></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 align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        align="left" noshade>
        </td>
    </tr>
</table>

<p align="right">&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>As of April 30, 2006, the total number of shares owned by the
directors, statutory auditors and executive officers of Eni SpA
as a Group was 202,078 equal to approximately 0.005% of
Eni&#146;s share capital outstanding at December 31, 2005. 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 25, 2006, the Ministry of Economy and Finance, Cassa
Depositi e Prestiti SpA and Gruppo Banca Intesa 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>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade>
        </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">Banca Intesa</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">97,522,352</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">2.44%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade>
        </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 &#150; The
Offer and the Listing&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 Consolidated
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>

<blockquote>
    <p><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. Based on
information available to date, and taking account of the existing
risk provisions, Eni believes that the foregoing will not have an
adverse effect on Eni&#146;s Consolidated Financial Statements.</p>

<p>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 can not be estimated reliably.</p>

<blockquote>
    <p><b>Environment</b></p>
</blockquote>

<p><i>Eni SpA<br>
</i>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&#146;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). Three
environmental organizations act as plaintiffs and requested
damage payment for euro 551 million. Two of these organizations
are also acting against the Gela refinery.</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 that have occurred since 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. Some
local public entities, environmental NGOs and landowners are
acting as plaintiffs. On January 17, 2005, a second inquiry phase
aimed at ascertaining which sort of emissions had eventually
produced the alleged pollution caused by the refinery of Gela,
was completed. On February 3, 2006, the notice of the conclusion
of preliminary investigations was filed conclusion of the
preliminary inquiry.</p>

<p>In June 2002, in connection with a fire in the refinery of
Gela, a criminal investigation began concerning arson,
environmental crimes and crimes against natural heritage. On May
12, 2004 the first hearing was held.</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. The
investigation concerns the environmental rules about the
pollution of water and soil and illegal disposal of liquid and
solid waste materials. On November 7, 2003 the judge for
preliminary investigations accepted to continue the inquiries as
requested by the public prosecutor 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. With a decision of November 3, 2003,
the Court for preliminary investigation, in agreement with a
request of the public prosecutor of Gela, ordered the preventive
seizure of 92 storage tanks, later reopened except for nine tanks
that remained under seizure but do not prevent full operations at
the refinery. The report filed by experts of the public
prosecutor is currently under review.</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. A qualified company has been given the task
to verify the cause, the origin and the extension of the alleged
infiltration. For protective purposes, actions have been taken
to: (i) create safety measures and clean-up all of the polluted
area; (ii)&nbsp;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. The report of experts
has been filed and its findings can be opposed to defendants.</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 -
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
Court of Cassation confirmed this decision. 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. On May 11, 2006
the Court of Rovigo accepted as plaintiffs the Veneto Region, the
Ente Parco della Provincia del Po, the Ferrara Province, the
Venice Province, the city of Venice, the city of Comacchio, the
Rovigo Province and two private entities. Eni was accepted as a
defendant. The Court of Rovigo rejected the accusation of
environmental disaster and therefore transferred the proceeding
to the Court of Adria, where the first hearing has been scheduled
for October 31, 2006.</p>

<p><i>EniPower SpA<br>
</i>In autumn 2004 the Public Prosecutor of Rovigo started an
investigation for alleged crimes related to unauthorized waste
management activities in Loreo relating to samples of the soil
used in the construction of the new EniPower&#146;s power station
in Mantova. EniPower requested the closing of the investigation.</p>

<p><i>Polimeri Europa SpA<br>
</i>Before the Court of Gela one criminal action took place
relating to the alleged violation on part of Eni of environmental
regulations on waste management concerning the ACN plant and the
disposal of FOK residue deriving from the steam cracking process.
The defendant was found guilty and a damage payment in first
instance was required to be made to an environmental association
acting as plaintiff. The sentence was passed to the civil court
for the quantification of any further damage and claim. Eni
appealed the Court&#146;s decision.</p>

<p><i>Syndial SpA (Former EniChem SpA)<br>
</i>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. Edison agreed on a settlement
that quantified damage to be paid covering also Syndial. The
proceeding continues for the alleged damage in the 1989-1990
period.</p>

<p>In 2000, the Public Prosecutor of Brindisi started a criminal
action against 68 persons who are employees or former employees
of 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 for the
dismissal of the case in respect of the employees and the
managers of EniChem. Plaintiffs presented oppositions while the
prosecutor confirmed his request for dismissal of the case.</p>

<p>On December 18, 2002 EniChem SpA, jointly with Ambiente SpA
(now merged in Syndial SpA) and European Vinyls Corporation
Italia SpA, was summoned before the Court of Venice by the
Province of Venice. The province requested compensation for
environmental damages, 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. The
final judgment is pending.</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, will act as plaintiffs. The collection of
evidence effected before the hearing starts in Court has been
concluded and preliminary investigations have ended with the
confirmation of accusations. During the inquiries traces of
mercury were found in the sea. The Public Prosecutor of Siracusa
started an inquiry for ascertaining the conditions of sediments
and marine fauna in the bay of Augusta. According to the
plaintiffs, mercury would have been spilled into the sea and
poisoned the marine fauna and therefore resulted in fetal
malformations and abortions due to the consumption of
contaminated seafood fished in this area. The chlorine soda
plant, built in the late 50s was conferred to Syndial in 1989
when the Enimont joint venture was formed. It was therefore easy
to prove that Eni holds no responsibility for the crimes it was
accused of. On March 15, 2006 the judge for preliminary
investigations decided the dismissal of the case against Syndial
employees.</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 approximately 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
Province of Crotone entered the proceeding, claiming
environmental damages for euro 300 million. Technical aspects
concerning the role of the delegated commissioner make it
necessary to decide on this aspect. 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.</p>

<p>On February 28, 2006 the Council of Ministers, the Ministry
for the Environment and the Delegated Commissioner for
environmental emergency in the Calabria Region represented by the
State Lawyer requested Syndial to appear before the Court of
Milan in order to obtain the ascertainment, quantification and
payment of damage (in the form of pollution of land, air and
water and therefore of the general condition of the population)
caused by the operations of Pertusola Sud SpA in the municipality
of Crotone and in surrounding municipalities. The local
authorities request the ascertainment of Syndial&#146;s
responsibility as concerns expenses borne and to be borne for the
cleanup and reclamation of sites, currently quantified at euro
129 million. This proceeding concerns the same company and
damages as indicated in the previous paragraph.</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&#146;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.</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 March 1,
2006 the State Lawyer in an attempt to settle the case proposed
that Syndial pay 10% of the requested damage corresponding to
euro 239 million. This attempt to settle failed.</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 that 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. The judge requested an expert report to be
prepared in order to ascertain what damage has been remediated
and what remains to be cleaned up after the interventions started
by Agricoltura and continued by EniChem/Syndial. The expert
report quantifies the damage still to be remediated in euro 15
million.<br>
</p>

<blockquote>
    <p><b>Tax Proceedings</b></p>
</blockquote>

<p><i>Eni SpA<br>
</i>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) should 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 was 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.</p>

<p>With a formal assessment presented by the municipality of
Pineto (Teramo), Eni SpA has been accused of not having paid a
municipal tax on real estate for the period from 1993 to 1998 on
four oil platforms located in the Adriatic Sea territorial waters
in front of the coast of Pineto. Eni has been requested to pay a
total of approximately euro 17 million also including interest
and a fine for lacking declaration. Eni filed a claim against
this request stating that the sea where the platforms are located
is not part of the municipal territory and the application of the
tax at requested by the municipality lacked objective
fundamentals. The claim has been accepted in the first two
degrees of judgment at the Provincial and Regional Tax
Commissions. But the Court of Cassation cancelled both judgments
declaring that a municipality can consider requesting a tax on
real estate also in the sea facing its territory and with a
decision of February 21, 2005 sent the proceeding to another
section of the Regional Tax Commission in order to judge on the
other reason opposed by Eni. On December 28, 2005 the
municipality of Pineto presented the same request for the same
platforms for the years 1999 to 2004. The total amount requested
to Eni is of euro 24 million. Eni filed a claim against this
request.</p>

<p><i>Agip Karachaganak BV<br>
</i>In July 2004, relevant Kazakh authorities informed Agip
Karachaganak BV and Agip Karachaganak Petroleum Operating BV,
shareholder and operator of the Karachaganak contract,
respectively, on 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 $43 million, net to Eni, and
the anticipated offsetting of VAT credits for $140 million, net
to Eni, as well as the payment of interest and penalties for a
total of $128 million. Both companies filed a counterclaim. With
an agreement reached on November 18, 2004, the original amounts
were reduced to $26 million net to Eni that includes taxes,
surcharges and interest. Meetings continue regarding residual
matters. Eni recorded a specific provision for this matter.</p>

<p><i>Snam Rete Gas SpA<br>
</i>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.
With the ruling of December 20, 2002, the Court judged the tax at
variance with European rules. In December 2002, Snam Rete Gas
suspended payments based on the above Court ruling. Payments
effected until November 2002 totalled 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 with its opinion presented
on July 7, 2004 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, and confirmed on March 4, 2005 by the Regional Tax
Commission, 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. As for the seven remaining installments paid after
April 2002 (euro 75.3 million) the Provincial Tax Commission of
Palermo with decision of January 5, 2005 confirmed the
illegitimacy of the tax condemning the Region to repay the
amounts paid and interest accrued to Snam Rete Gas. The Sicilia
Region presented recourse to the Regional Tax Commission at
Palermo, a hearing has been scheduled for April 5, 2006. 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, confirmed
by the Regional Tax Commission on March 7, 2005. 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.<br>
</p>

<blockquote>
    <p><b>Other judicial or arbitration proceedings</b></p>
</blockquote>

<p><i>Syndial SpA (former EniChem SpA) - Serfactoring SpA<br>
</i>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
was set to be discussed in a hearing set for March 16, 2007 but
was rescheduled for October 27, 2006 upon request of
Agrifactoring. 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. Against this suspension Serfactoring and Syndial
requested to the Court of Cassation the cancellation of the
suspension and the return of the case to its original court.</p>

<p><i>Syndial SpA (former EniChem SpA)<br>
</i>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. With a
judgment of October 11, 2005 the Court rejected ICR&#146;s
request and order that ICR pay all expenses. ICR filed a claim
against this decision.<br>
</p>

<blockquote>
    <p><b>Antitrust, EU Proceedings, Actions of the Authority for
    Electricity and Gas and of Other Regulatory Authorities</b></p>
</blockquote>

<p><i>Eni SpA<br>
</i>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/EC, 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. On December 22, 2005, the Authority notified the
preliminary results of the inquiry concerning: (i) information
flows to oil companies related to the functioning of shared
storage and uploading companies; (ii) barriers to the entrance of
new competitors; and (iii) the price of jet fuel is higher than
on other European markets. On June 20, 2006, the Antitrust
notified Eni the final decision of this proceeding and fined Eni
by an amount of euro 117 million. The Antitrust fined other oil
companies involved in the matter. Eni is evaluating this decision
in order to file a claim against it decision before an
administrative court.</p>

<p>On April 28, 2005 the Commission of the European Communities
started a formal assessment to evaluate the alleged participation
of Eni and its subsidiaries to activities limiting competition in
the field of paraffin. The alleged violation of competition would
have consisted in: (i) the determination of and increase in
prices; (ii) the subdivision of customers; and (iii) exchange of
trade secrets, such as production capacity and sales volumes. On
November 3, the Commission requested information on Eni&#146;s
activities in the field of paraffins. On November 29, 2005 Eni
filed the requested information. On April 21, 2006 the Antitrust
Authority requested information on the processing of raw
paraffin, which Eni supplied in a letter dated May 25, 2006.</p>

<p>The Department of Justice of the United States of America -
Antitrust Division, notified Eni Petroleum Co Inc of a subpoena
requesting information and documents relating to activities in
the field of wax to be filed before June 20, 2005. The Company
informed the department that it does not produce nor import wax
in the United States of America.</p>

<p><i>Polimeri Europa SpA and Syndial SpA<br>
</i>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 from 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
the relevant charges to that effect on March 8, 2005. At a
hearing held on July 27, 2005 the two companies presented
memoranda and confirmed their position. The parties await for a
decision of the Commission.</p>

<p>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. In July 2005
Syndial signed a settlement agreement for the civil class action
which entails the payment of approximately $3.2 million, approved
by the federal court.</p>

<p>The investigation was also extended to the following products:
NBR, CR, BR, SSBR and SBR.</p>

<p>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 two products the
Commission started an infraction procedure by notifying Eni,
Polimeri Europa and Syndial the relevant charges. The companies
presented a written memorandum and the Commission decided to open
an inquiry, as a consequence of which the Commission sent a new
description of the charges. The companies are preparing a new
memorandum.</p>

<p>With regard to NBR an inquiry is underway in Europe and the
USA, where class actions also have been started. The class action
at federal level was abandoned by the plaintiffs. The federal
judge acknowledged this abandonment.</p>

<p>With regard to CR, as part of an investigation carried out in
the USA, Syndial entered into a plea agreement with the
Department of Justice pursuant to which Syndial would agree to
pay a fine of $9 million, while the Department of Justice would
agree that it will not bring further criminal charges against
Syndial or against its affiliate companies. On June 27, 2005 the
plea agreement was approved. For CR the civil class action was
closed with a settlement agreement approved by the federal judge
on July 8, 2005 whereby the company will pay $5 million. The
European Commission requested Eni, Polimeri Europa and Syndial to
provide information about CR. The two companies decided to
cooperate with the Commission.</p>

<p>Eni recorded a provision for these matters.</p>

<p><i>Stoccaggi Gas Italia SpA<br>
</i>With Decision No. 26 of February 27, 2002, the Authority for
Electricity and Gas determined tariff criteria for modulation,
mineral and strategic storage services for the period starting on
April 1, 2002 until March 31, 2006 and effective retroactively
from June 21, 2000. On March 18, 2002 Stoccaggi Gas Italia SpA
(Stogit) filed its proposal of tariff for modulation, mineral and
strategic storage for the first regulated period. With Decision
No. 49 of March 26, 2002, the Authority 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 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. Stogit filed an
appeal to the Council of State against the sentence which was
rejected by the Council of State on January 6, 2006.</p>

<p><i>Distribuidora de Gas Cuyana SA<br>
</i>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. On April 28,
2006, the Company filed a formal request for examining the
documents used as evidence of the alleged violation.<br>
</p>

<blockquote>
    <p><b><i>Court inquiries</i></b></p>
</blockquote>

<p>The Milan Public Prosecutor is inquiring into 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 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.<br>
</p>

<blockquote>
    <p><b><i>TSKJ Consortium - Investigations of SEC and other
    Authorities</i></b></p>
</blockquote>

<p>In June 2004 the U.S. Securities and Exchange Commission (SEC)
notified Eni a request of collaboration on a voluntary basis,
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. Other Authorities
are currently investigating this matter. Eni is currently
providing its own information to the Commission and to other
authorities.<br>
</p>

<blockquote>
    <p><b><i>Settled Proceedings</i></b></p>
</blockquote>

<p><i>Tax Proceedings<br>
</i>In August 2005, the internal revenue service of Venezuela
served to Eni Daci&#243;n BV four formal assessment on income taxes
for the years 2001 to 2004 that, by excluding the deductibility
of certain costs: (i) annul the losses recorded for the periods
amounting to a total of bolivar 910 billion (corresponding to
$425 million); (ii)&nbsp;determine for the same periods a taxable
income amounting to a total of bolivar 115 billion (corresponding
to $54 million); and (iii) request a tax amounting to bolivar 52
billion (corresponding to $24 million) determined by applying a
50% tax rate rather than the 34% rate applied to other companies
performing activities analogous to those of Eni Daci&#243;n BV. In
particular it excluded the deductibility of: (i) interest charges
due to other Eni Group companies that provided loans denominated
in U.S. dollars; and (ii) exchange rate losses recorded in the
financial statements and related to such loans resulting from the
devaluation of the Venezuelan currency. The formal assessments
served have a preliminary nature and do not request immediate
payment nor do they specify the amount of a fine (from 10 to
250%) and of interest (average rate for the period approximately
23%). Eni Daci&#243;n filed a claim for the cancellation of the
assessment. In the 2005 accounts, Eni recorded a specific
provision for this matter. In April 2006 the appeal was rejected
and the final tax assessment was issued. The final tax
assessment: (i)&nbsp;substantially confirmed the preliminary
assessments, although reducing the originally assessed income tax
liability to bolivar 39 billion ($18 million); and (ii) imposed
fines and late payment interests of bolivar 109 billion ($51
million). Eni Daci&#243;n BV presented a further administrative
appeal before the expiration of the time limit for filing a
judicial tax appeal, thereby obtaining a reduction of the overall
amount from bolivar 148 billion ($69 million) to bolivar 52
billion ($24 million) including taxes in the amount of bolivar
12.5 billion ($6 million) and fines and late payment interest in
the amount of bolivar 39.5 billion ($18 million). In order to
avoid further charges deriving from the increase of the
corresponding fines and late payment interest, Eni Daci&#243;n BV
paid the newly assessed amount in May 2006, thereby reaching a
settlement. Consistently, Eni Daci&#243;n BV filed an integrative
income tax return for year 2005, considering the new tax bases
for years 2001 to 2004, and paid accordingly bolivar 128 billion
($60 million) of income taxes and bolivar 4.4 billion ($2
million) of fines and late payment interest. </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&#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 did 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 was based on the fact that the company did
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 canceling the 147
formal assessments. On March 12, 2004 the Comando Nucleo
Regionale Polizia Tributaria 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. The notification was 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. On January 26, 2006 the judge for preliminary
investigation of the Court of Taranto dismissed the accusations
and closed the assessment.</p>

<p><i>Legal Proceedings<br>
</i>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 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 that agreed to pay
13% of the remediation costs. The first action promoted by Grifil
before the Court of La Spezia remained 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 fulfill its obligation. The judge closed the inquiry
phase and stated that the judgment can be brought to an end. 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. On September 6, 2005 Eni and Immobiliare Helios SpA
(that acquired all of Grifil&#146;s share capital) reached a
settlement that: (i) concluded all disputes outstanding with
Grifil and constitutes a waiver to any possible future claim
directly or indirectly related to the sale of the land parcel;
(ii) passed to the acquirer all residual expense to be incurred
for the reclamation of the land parcel with the explicit approval
of the municipality of La Spezia; and (iii)&nbsp;provided for Eni
to pay to the new owner of Grifil a lump sum of euro 15.1 million
that will be paid when the new owner provides confirmation of
works performed for the reclamation; the sum is covered by
provisions in the risk reserve.</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. Defendants included
certain employees of Eni which has been managing the Porto
Marghera plant since the beginning of the eighties. 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,
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. On May 19, 2006, the Court of
final instance, before which plaintiffs appealed the decision of
the Court of Appeals, acquitted all defendants stating that
pollution and mismanagement of the plant occurred before the
eighties and consequently Eni and its employees could not be
deemed responsible for that. In January 2006 Eni settled this
matter with the Council of Ministers and the Ministry for the
Environment paying an amount of euro 40 million. Under terms of
the settlement, the latter will abstain from the recourse to the
Court of final instance and will not act on any other
environmental damage concerning the management of Porto Marghera
until the date of the settlement. Eni had already recorded a
provision for this matter which was sufficient to cover the
amount of the settlement.<br>
</p>

<blockquote>
    <p><b><i>Dividends</i></b></p>
</blockquote>

<p>Eni&#146;s dividend policy in future periods and the
sustainability and the amount of future dividends over the next
four year period will depend upon a number of factors including
the increase in earnings and in cash flow provided by operating
activities, a sound balance sheet structure, capital expenditure
and development plans, and the &quot;Risk Factors&quot; set out
in Item 3. Eni SpA&#146;s net profit 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 a
flow of dividends in line with the level of 2005 for the next
four year period. On May 25, 2006, Eni&#146;s general
shareholders&#146; meeting approved a dividend of euro 1.10 per
share for fiscal year 2005 as proposed by Eni&#146;s Board of
Directors. This dividend (of which euro 0.45 was already paid as
an interim dividend in October 2005) represented an increase of
22% with respect to the dividend paid for fiscal year 2004 (euro
0.90 per share); the ratio of aggregate dividends payments to
consolidated net profit (pay-out) for year 2004 stands at 47%.
Eni plans to continue paying interim dividends in future years.</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 2006 and other material developments that occurred
after December 31, 2005.</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 1,000 million. American
Depositary Shares (&quot;ADSs&quot;), each representing two
shares, are listed on the New York Stock Exchange. The ratio has
changed from one ADS per five Shares to one ADS per two Shares,
effective January 10, 2006.</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. Due to the ratio change, the historical
prices of ADSs have been adjusted by an adjustment factor of 2.5.
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>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </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>(U.S.
        $ 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">2001</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15.598</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.564</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">27.880</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">21.000</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">17.145</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">12.938</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">32.844</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">24.360</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2003</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">15.746</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">11.881</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">37.992</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">26.460</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">18.748</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">14.723</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">50.580</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">36.940</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24.960</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17.930</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">60.540</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">47.400</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">16.640</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">14.723</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">40.536</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">36.940</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Second quarter</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17.980</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">16.319</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">43.364</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">38.924</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Third
        quarter</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">18.584</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">16.272</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">45.804</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">39.608</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Fourth quarter</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">18.748</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">17.651</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">50.580</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">44.244</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">20.480</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">17.930</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">54.288</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">47.400</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Second quarter</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22.070</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">19.270</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">54084</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">49.004</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Third
        quarter</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">24.960</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">21.430</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">60.540</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">51.320</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Fourth quarter</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24.770</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">21.640</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">59.020</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">51.628</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2"><b>2006</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">24.880</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">23.050</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">60.650</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">55.170</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">January 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24.880</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">23.710</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">60.650</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">57.640</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">February
        2006</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">24.860</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">23.840</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">59.510</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">56.550</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">March 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">23.770</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">23.050</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">58.130</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">55.170</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">April 2006</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">24.810</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">23.370</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">61.320</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">57.050</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">May 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">24.570</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">22.500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">62.630</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"
        bgcolor="#EEEEEE"><font size="2">58.680</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">June 2006
        (through June 5, 2006)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">23.600</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">23.340</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">60.780</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><font
        size="2">60.280</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="7%"><hr size="1"
        noshade>
        </td>
    </tr>
</table>

<p>JPMorgan Chase Bank, N.A. (the &quot;Depositary&quot;)
functions as 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 5, 2006 there were 45,497,401 ADRs outstanding,
representing 90,994,802 ordinary shares, or 2.27% of all
Eni&#146;s shares outstanding, held by 65 holders of record
(including The Depository Trust Company) in the United States of
America, 62 of which are U.S. residents. Since certain of such
ADRs are held by nominees, the number of holders may not be
representative of the number of Beneficial Owners in the United
States or elsewhere.</p>

<p>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 the markets
organized and managed by Borsa Italiana SpA (&quot;Borsa
Italiana&quot;). 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 future and option contracts traded in the Italian
Derivatives Market (&quot;IDEM&quot;) managed by Borsa Italiana.
The Shares are the second largest component of the S&amp;P/MIB,
after the shares of Unicredito Italiano SpA, with a weighting of
approximately 16.5%, as established by Standard &amp; Poor&#146;s
and Borsa Italiana after reviewing the composition of the
S&amp;P/MIB on May 19, 2006. In addition, future and option
contracts on the Shares are traded on IDEM and securitised
derivatives based on the Shares are traded on the Italian
Securitised Derivatives Market (&quot;SeDeX&quot;). IDEM
facilitates the trading of future and option contracts on index
and shares issued by companies that meet certain required
capitalization and liquidity thresholds. SeDeX is the Borsa
Italiana electronic regulated market where it is possible to
trade securitised derivatives (covered warrants and
certificates).</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>

<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), Mercato MTAX (high growth
companies), After Hours, Mercato Expandi (small companies), IDEM
(index and stock derivatives market), SeDeX (covered warrants and
certificates), 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>

<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 as amended by Eni&#146;s Extraordinary Shareholders&#146;
Meeting held on May 25, 2006, is attached as an exhibit to this
annual report. See Exhibit 1.</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.<br>
</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.<br>
</p>

<blockquote>
    <p><b><i>Limitations on Voting and Shareholdings</i></b></p>
</blockquote>

<blockquote>
    <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, on April 13, 2005, the
Eni&#146;s Board of Directors modified the Eni&#146;s 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&#146;s by-laws acknowledge 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="1%">&nbsp;</td>
        <td valign="top" width="97%">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&#146; 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&#146; 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 valign="top" width="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">opposition with respect to
        the subscription of shareholders&#146; 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&#146; 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 valign="top" width="2%">c)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">veto power with respect to
        resolutions to dissolve the company, to transfer the
        business, to merge, to demerge, to transfer the
        company&#146;s registered office abroad, to change the
        company objects and to amend the by-laws canceling 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 valign="top" width="2%">d)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">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>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 Commission'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>Furthermore Law No. 266 of December 23, 2005 (the Budget Law)
in Article 1 paragraphs from 381 to 384 in order to favor the
process of privatization and the diffusion of investments in
companies also held by the State, introduced the option to
include in the by-laws of companies formerly owned by the State,
as in the case of Eni SpA, regulations against takeovers, which
in particular provide for the issue of shares, also at nominal
value, and similar shareholding certificates bearing the right to
vote at ordinary and extraordinary Shareholders&#146; Meetings in
favor of one or more shareholders identified in terms of the
number of shares held. The introduction of these norms, which are
subject to approval by the EU, will cause the cancellation of the
above mentioned special powers of the State contained in Article
6.2 of Eni&#146;s by-laws.</p>

<blockquote>
    <p><i>Minority Protection Provisions</i></p>
</blockquote>

<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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="2%">b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">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
two-thirds 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)&nbsp;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)&nbsp;the actions for which a single
shareholder may sue (Article 2394-bis c.c.); and
(v)&nbsp;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)&nbsp;and (v)&nbsp;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>

<p>Further protection to Italian minority shareholders was
introduced by Law of January 12, 2006, the so called &quot;Legge
Risparmio&quot;, that provided for among others the followings:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">sets new independence and
        honorability requirements for directors of listed
        companies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">introduces the list vote for
        the election of directors as a protection of minority
        shareholders and delegates to Consob, the Italian
        financial markets regulator, the power to regulate the
        appointment of a statutory auditor by minority
        shareholders. The law states that shareholders
        representing at least 2.5% of share capital can present a
        list;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">delegates to Consob the
        determination of the limits to the number of memberships
        of boards of directors and boards of statutory auditors
        that directors and auditors of listed companies can hold
        in other listed companies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">states that the chairman of
        the Board of Statutory Auditors must be elected among the
        candidates presented by minority lists; and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">introduces the function of a
        &quot;Manager responsible for the preparation of
        financial reporting documents&quot; to be appointed in
        accordance with rules set out in a company&#146;s
        by-laws, subject to a prior advice on part of the Board
        of Statutory Auditors.</td>
    </tr>
</table>

<p>Companies must amend their own by-laws within twelve months
from the entry into force of the law. Certain provisions of this
law were already reflected into Eni&#146;s by-laws; certain other
provisions have been incorporated into Eni&#146;s by-laws
effective May 25, 2006 by Eni&#146;s Extraordinary Shareholders
Meeting.</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&#146; 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&#146;
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&#146; 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">Table of Contents</a></h5>

<p><font size="3"><b>Material Contracts</b></font></p>

<p>None.</p>

<p>&nbsp;</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 100 F 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>

<h5 align="right"><a href="#toc" name="Exchange controls">Table
of Contents</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 12.5 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><b>Taxation</b></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.<br>
</i></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>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="1%">&nbsp;</td>
        <td valign="top" width="97%">contracts executed on
        regulated financial markets;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">contracts concerning shares
        of non-listed companies, executed between non-resident
        persons and banks or other authorized intermediaries
        (provided that certain conditions are met); and </td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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>

<blockquote>
    <p><i>Capital Gains Tax</i></p>
</blockquote>

<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="1%">&nbsp;</td>
        <td valign="top" width="97%">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="1%">&nbsp;</td>
        <td valign="top" width="97%">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
euro 180,759.91, 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 euro 129.11.</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 ADSs. 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)&nbsp;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 ADRs, and ADRs 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 capital gain. 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
non-corporate U.S. Holder, dividends paid to you in taxable years
beginning before January 1, 2011 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 U.S. dollar value of the euro payments made,
determined at the spot euro/U.S. dollar rate on the date the
dividend distribution is includible in your income, regardless of
whether the payment is in fact converted into U.S. 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 U.S. dollars will be treated as ordinary income or loss and
will not be eligible for the special tax rate applicable to
qualified dividend income. The gain or loss generally will be
income or loss from sources within the United States for foreign
tax credit limitation purposes.</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 U.S.
dollars), as the case may be, and the amount realized on the sale
or exchange (or if the amount realized is denominated in a
foreign currency its U.S. dollar equivalent, determined at the
spot rate on the date of disposition). Generally, such gain or
loss will be treated as capital gain or loss if the Shares or
ADSs are held as capital assets and will be a long-term capital
gain or loss if the shares or ADSs have been held for more than
one year on the date of such sale or exchange. Long-term capital
gain of a non-corporate U.S. Holder that is recognized in taxable
years beginning before January 1, 2011 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>

<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>Market risk is the possibility that changes in currency
exchange rates, interest rates or oil, natural gas, petroleum
products and electricity prices will adversely affect the value
of the group&#146;s financial assets, liabilities or expected
future cash flows. Eni has developed policies aimed at managing
the market risk inherent in its activities and, in accordance
with these policies, the group enters into various transactions
using derivative financial and commodity instruments
(derivatives). Derivatives are contracts whose value is derived
from one or more underlying financial instruments, indices or
prices that are defined in the contract. The group also trades
derivatives in conjunction with these risk management activities.
Eni does not enter into derivative transactions on a speculative
basis.</p>

<p>All derivative activity, whether for risk management or
trading, is carried out by specialist teams that have the
appropriate skills, experience and supervision. 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 companies responsible for treasury operations. Such
policy also defines the eligible counterparties in derivative
transactions. Eni&#146;s Treasury Department is responsible for
monitoring compliance with Eni&#146;s policy and the correlation
between the indicators adopted for both measuring the tolerable
risk level and composition of the portfolios and market
conditions.</p>

<p>As far as interest rate and foreign exchange rate risks are
concerned, 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
Eni&#146;s subsidiaries is more conservative than the recommended
one. Eni&#146;s guidelines for the management of commodity risk
contain maximum limits to the price risk deriving from trading
activities.</p>

<p>According to International Accounting Standard No. 39
&quot;Financial instruments: recognition and measurement&quot;
(IAS 39), derivatives are classified as hedging instruments when
the relationship between the derivative and the subject of the
hedge is formally documented and the effectiveness of the hedge
is high and is checked periodically. When derivatives constitute
a fair value hedge, the group&#146;s exposure to market risk
created by the derivative is offset by the opposite exposure
arising from the asset or liability. When derivates are
designated as a part of a cash flow hedge, changes in the fair
value of the derivates are initially stated in net equity and
then recognized in the profit and loss account consistent with
effects economic produced by the hedged transaction. Derivatives
that do not meet the conditions required by IAS 39 qualify as
derivatives held for trading purposes and are accounted for at
fair value, with change in fair value recorded in the profit and
loss account.</p>

<p>Nature and classification of derivative financial instruments
held by Eni as of December 31, 2005 and related fair value at the
same date are set out in the table below.</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="39%"><p align="center"><font
        size="1"><b>Years ended December 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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" colspan="2" width="9%"><p
        align="center"><font size="1"><b>Fair value asset</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Contractual or notional amounts</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Fair value liability</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Contractual or notional amounts</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" colspan="2" width="9%"><hr size="1"
        noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" colspan="3" width="60%">&nbsp;</td>
        <td valign="bottom" colspan="7" width="40%"><p
        align="center"><font size="1"><b>(euro million)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="60%"><font size="2"><b>Fair value
        of non-hedging derivates</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">Exchange rate</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">73</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">3,681</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">214</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">8,743</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">Interest rate</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">14</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">1,281</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">101</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">5,145</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">Commodities</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">30</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">405</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">63</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">417</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2"><b>117</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2"><b>5,367</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2"><b>378</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2"><b>14,305</b></font></td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Fair value of cash flow-hedging derivates</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">Exchange rate</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">0</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">5</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">5</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">42</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">Interest rate</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">Commodities</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">32</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">171</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>32</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>176</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>5</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>42</b></font></td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><hr size="1"
        noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><hr size="1"
        noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><hr size="1"
        noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><hr size="1"
        noshade>
        </td>
    </tr>
</table>

<blockquote>
    <p><b><i>Sensitivity analysis</i></b></p>
</blockquote>

<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.
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. Actual changes in
market prices or rates may differ from hypothetical changes.</p>

<p>The table below presents the potential impact on the fair
value of the current financial instruments as of December 31,
2005, of an increase or a decrease of 10% in the interest rate
yield curves in each of the currencies.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="41%"><font size="1">(euro
        million)</font><p><font size="1"><b>As of December 31,
        2005<br>
        &#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
        Assets/Liabilities</b></font></p>
        </td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Notional value/ Carrying amount assets</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Notional value/ Carrying amount liabilities</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Fair value assets</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Fair value liabilities</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 fair value with a 10% interest rate
        increase</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 fair value with a 10% interest rate
        decrease</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Interest rate</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" 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 align="right" 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 align="right" 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 align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Financial
        instruments </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">233</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">1,499</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">236</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">1,698</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">38</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(54</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Derivative financial instruments </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">1,281</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">5,145</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">14</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">101</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">47</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">(48</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- of which<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest rate swap</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">1,281</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">5,145</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">14</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">101</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">47</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(48</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2"><b>1,514</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>6,644</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>250</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>1,799</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>85</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>(102</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Exchange rate</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" 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 align="right" 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 align="right" 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 align="right" 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 align="right" 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 align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Financial
        instruments </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">197</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">120</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">235</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">120</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">13</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(12</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Derivative financial instruments </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">3,686</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">8,785</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">73</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">218</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">164</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">(202</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- of which<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;interest currency swap</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">1,277</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">2,316</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">58</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">73</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">170</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(175</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;currency swap</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">2,378</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">6,370</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">15</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">139</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">(15</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(15</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">31</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">99</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">6</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">9</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(12</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2"><b>3,883</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>8,905</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>308</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>338</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>177</b></font></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="8%"
        bgcolor="#EEEEEE"><font size="2"><b>(214</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>As of the same date, Eni&#146;s exposure to commodity market
risk was immaterial.</p>

<p><b>Currency risk</b> Fluctuations in exchange rates can have
significant effects on the group&#146;s reported profit. The
effects of most exchange rate fluctuations are absorbed in
business operating results through changing cost-competitiveness,
changes in the price of certain products via indexation to
international parameters quoted in U.S. dollars, lags in market
adjustment to movements in rates and conversion differences
accounted for on specific transactions. For this reason, the
total effect of exchange rate fluctuations is not identifiable
separately in the group&#146;s reported profit, nor is the whole
exchange rate risk entirely covered. In addition to the euro,
which the currency adopted for financial reporting purposes, the
main underlying economic currency of the group&#146;s cash flows
is the U.S. dollar. This is because Eni&#146;s major products are
priced internationally in U.S. dollars or linked to certain
products priced in U.S. dollars. Eni&#146;s foreign exchange
management policy is to minimize economic and significant
transactional exposures arising from movements of the euro
against the U.S. dollar. The group co-ordinates the handling of
foreign exchange risks centrally, by netting off naturally
occurring opposite exposures wherever possible to reduce the
risks, and then dealing with any material residual foreign
exchange risks.</p>

<p><b>Interest rate risk</b> The group is exposed to interest
rate risk on short- and long-term floating rate instruments and
as a result of the refinancing of fixed rate finance debt.
Eni&#146;s policy foresees to incur long-term debt at a floating
rate, or at a fixed rate depending on opportunities at the
issuance with regards to the level of interest rates, in euros or
in U.S. dollars according to general corporate purposes (to
optimize level of liquidity, to optimize revenue from investments
considering existing interest yield curves, and to minimize the
cost of borrowing).</p>

<p>The group is exposed predominantly to Euribor (Euro Interbank
Offered Rate) and U.S. dollar LIBOR (London Inter-Bank Offer
Rate) interest rates as borrowings are mainly denominated in euro
or U.S. dollars. To manage the balance between fixed and floating
rate debt, the group enters into interest rate and cross-currency
swaps in which the group agrees to exchange, at specified
intervals, the difference between fixed and variable rate
interest amounts calculated by reference to an agreed notional
principal amount. The proportion of floating rate debt at
December 31, 2005 was 83% of total finance debt outstanding.</p>

<p><b>Commodity risk</b> Eni&#146;s results of operations are
exposed to fluctuations in prices of crude oil, petroleum prices,
natural gas and electricity. Changes in commodity prices are
absorbed by the Group&#146;s business units. A decrease in oil
prices generally has a negative impact on Eni&#146;s results of
operations and vice versa. Eni also bears commodity risks in
connection with certain trading activities. Eni&#146;s trading
function uses financial and commodity derivatives as part of the
associated trading of crude oil, refined products, electricity
and related instruments to manage certain of the group&#146;s
exposures to price fluctuations.</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. A copy of this code
of ethics is included as an exhibit to this annual report.</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 year 2003 and as Eni principal
independent public auditor for fiscal years 2004 and 2005, 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>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" height="10"><font
        size="1">(thousand euro)</font></td>
        <td valign="bottom" width="18%" height="10"><p
        align="center"><font size="1"><b>2004</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>2005</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>
        </td>
        <td valign="bottom" width="3%" height="5">&nbsp;</td>
        <td valign="bottom" width="18%" height="5"><hr size="1"
        noshade>
        </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">9,344</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="9">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="9">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="9"><p align="right"><font size="2">12,591</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">136</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
        <td valign="bottom" width="1%" height="10">&nbsp;</td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">190</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">344</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2">246</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">54</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
        <td valign="bottom" width="1%" height="10">&nbsp;</td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">38</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>9,878</b></font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2"><b>13,065</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>
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" colspan="2" width="18%" height="5"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<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 Board of Statutory Auditors 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 Board of
Statutory Auditors.</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 Board
of Statutory Auditors, which also informed all Group companies
that pre-approval by the Board 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. During 2005, no audit-related fees, tax
fees or other non-audit fees were approved by the Board of
Statutory Auditors pursuant to the de minimis exception to the
pre-approval requirement provided by paragraph (c)(7)(i) (c) of
Rule 2-01 of Regulation S-X.</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-(c)(3) for
non-U.S. private issuers, Eni has identified the Board of
Statutory Auditors as the body that, starting from June 1, 2005,
is performing the functions required by the SEC rules and the
Sarbanes-Oxley Act to be performed by the audit committees of
non-U.S. 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>The following tables present purchases of own shares by Eni
from the beginning of the program through May 31, 2006 <sup>(1)</sup>:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="48%"><font size="1"><b>Period</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Number of shares (million)</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<br>
        (euro per share)</b></font></p>
        </td>
        <td valign="bottom" width="1%">&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="1%">&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="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">2000 (Since September 1) </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">44.38</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">12.92</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">574</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">1.11</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">2001</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">110.00</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">13.58</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">1,494</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">2.75</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">2002</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">52.26</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">14.74</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">771</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">1.30</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">2003</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">23.95</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">13.76</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">329</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">0.60</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">2004</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">4.23</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">16.60</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">70</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">0.10</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">47.06</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">21.97</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">1,034</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">1.18</font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">2006, through May 31, 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">25.02</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">23.74</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">594</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">0.62</font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2"><b>Total
        purchased as of May 31, 2006</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><b>306.90</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><b>15.85</b></font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><b>4,866</b></font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><b>7.66</b></font></td>
        <td valign="bottom" width="2%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">minus:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        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="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">- stock
        option exercised and shares grantedpursuant to stock
        option and stock grant plans for the 2003-2005 three year
        period</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">(5.01</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2"><b>301.89</b></font></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="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2"><b>7.54</b></font></td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<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%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="13%"><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="13%"><p align="center"><font
        size="1"><b>Average price paid per share (euro)</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><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="13%"><p align="center"><font
        size="1"><b>Maximum number of shares that may yet be
        purchased under the plans or programs </b><sup>(2)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="44%"><font size="2">At
        December 31, 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">234,812,701</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">13.79</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">234,812,701</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">165,605,112</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">January 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">560,260</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">18.17</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">235,372,961</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">165,044,852</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">February
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">854,920</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">19.06</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">236,227,881</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">164,193,332</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">March 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">1,297,742</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">19.92</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">237,525,623</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">162,901,290</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">April 2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">3,764,013</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">19.49</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">241,289,636</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">159,137,277</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">May 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">4,030,350</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">19.80</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">245,319,986</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">155,307,627</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">June 2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">1,041,403</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">21.23</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">246,361,389</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">154,802,124</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">July 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">57,200</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">21.46</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">246,418,589</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">154,812,924</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">August
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">494,349</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">23.53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">246,912,938</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">156,116,575</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">September 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">33,900</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">24.57</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">246,946,838</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">156,496,575</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">October
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">20,875,450</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">22.37</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">267,822,288</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">135,746,725</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">November 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">7,974,000</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">22.82</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">275,796,288</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">127,864,925</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">December
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">6,081,000</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">23.62</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">281,877,288</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">121,986,025</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">January 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">4,539,921</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">24.23</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">286,417,209</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">117,874,304</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">February
        2006</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">2,449,000</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">24.17</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">288,866,209</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">115,478,004</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">March 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">6,163,400</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">23.35</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">295,029,609</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">109,420,304</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">April 2006</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">3,629,000</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">24.17</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">298,658,609</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><font
        size="2">106,045,904</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">May 2006</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">8,246,033</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">23.43</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">306,904,642</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="2%" bgcolor="#EEEEEE"><font
        size="1"><sup>(3)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><font size="2">98,105,871</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" noshade>
        </td>
    </tr>
</table>

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

<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">Since May
        2000, Eni&#146;s Ordinary Shareholders&#146; Meeting
        authorized Eni&#146;s Board of Directors to carry out a
        program for the repurchase of its own shares within set
        limits taking account also of Italian law restrictions
        which relate to the obligation of the Company to purchase
        its own shares paying 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. In subsequent
        years, Eni&#146;s Ordinary Shareholders&#146; Meeting
        re-authorized the Board to continue this program for the
        repurchase of its own shares and increased the amount of
        cash to be spent on it. 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.</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">Based on the
        authorized purchase ceiling, deducting the total number
        of shares purchased and adding the total number of stock
        options exercised by and shares granted to Eni&#146;s
        managers pursuant to stock option and stock grant plans
        for the 2003-2005 three year period.</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">On May 25,
        2006 Eni&#146;s Ordinary Shareholders&#146; Meeting
        authorized the continuation of the program for the
        repurchase of its own shares for a further 18 month
        period and up to 400 million ordinary shares, nominal
        value euro 1 each, for an aggregate amount not exceeding
        euro 7.4 billion. The 400 million shares and the 7.4
        billion thresholds take into account the number and
        amount of Eni shares purchased from the beginning of the
        program until May 24, 2006. As of May 24, 2006, Eni
        purchased approximately 304.94 million own shares, equal
        to approximately 7.61% of Eni&#146;s share capital, for
        an aggregate amount of euro 4,820 million (corresponding
        to an average purchase price of euro 15.81 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. At the same date, and taking
        account shares granted to Eni&#146;s managers pursuant to
        stock option and stock grant plans, Eni held 300.13
        million own shares corresponding to 7.49% of Eni&#146;s
        share capital.</font></td>
    </tr>
</table>

<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="#Report of Ind">Report of Independent Registered
Public Accounting Firm</a></p>

<p><a href="#Balance Sheet">Balance Sheets at December 31, 2004
and 2005</a></p>

<p><a href="#Profit and Loss acc">Profit and loss account at
December 31, 2004 and 2005</a></p>

<p><a href="#Statement of Change in ShEq">Statement of changes in
shareholder&#146;s equity for the years ended December 31, 2004
and 2005</a></p>

<p><a href="#StatCashFlows">Statements of cash flows for the
years ended December 31, 2004 and 2005</a></p>

<p><a href="#Supplemental CF">Supplemental cash flows information
for the years ended December 31, 2004 and 2005</a></p>

<p><a href="#Notes to CFS">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 May 25, 2006</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 21, 2006</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>
        </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="Report of Ind">Table of Contents</a></h5>

<p align="center"><b>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</b></p>

<p>To the Board of Directors and Shareholders<br>
of Eni SpA</p>

<p>&nbsp;</p>

<p>In our opinion, the accompanying consolidated balance sheets
and the related consolidated profit and loss account, and
consolidated statements of cash flows and of changes in
shareholder's equity present fairly, in all material respects,
the financial position of Eni SpA and its subsidiaries (the
&quot;Company&quot;) at December 31, 2005, and 2004, and the
results of their operations and their cash flows for each of the
two years in the period ended December 31, 2005, in accordance
with International Financial Reporting Standards as adopted in
the European Union. 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 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 provide a reasonable
basis for our opinion.</p>

<p>International Financial Reporting Standard as adopted by the
European Union 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 33, 34 and 35 of the financial
statements.</p>

<p>As discussed in Notes 2, 4, 6 and 17 of the financial
statements, as a result of adopting IAS 32 and IAS 39 on January
1, 2005, the Company changed its method of accounting for
financial instruments.</p>

<p><b>PricewaterhouseCoopers SpA</b></p>

<p>Rome, June 21, 2006</p>

<hr noshade>

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

<p><font size="4"><strong>Effects of the adoption of IFRS</strong></font><a
href="#F(1)"><font size="4"><sup><sup>1</sup></sup></font></a><br>
<br>
<font size="2">Starting in 2005 companies with securities listed
on a regulated stock market of a Member State of the European
Union are required to prepare their Consolidated Financial
Statements in accordance with the international accounting
principles (IFRS) approved by the European Commission.</font></p>

<p><font size="2">At January 1, 2004, date of the first
application of the new accounting principles, which corresponds
with the first period to be compared, Eni must present a balance
sheet which:</font></p>

<p><font size="2">&#149; reports all and only the assets and
liabilities accounted under the new accounting principles;<br>
&#149; accounts the assets and liabilities as if the new
accounting principles had always been applied (retrospective
method); and<br>
&#149; reclassifies the items indicated under different
principles instead of IFRS.</font></p>

<p><font size="2">The effect of the adjustments of the initial
balance of assets and liabilities to the new accounting
principles has been accounted with a corresponding entry to
shareholders&#146; equity, taking account of the relevant fiscal
effects to be recognized as deferred tax liabilities or deferred
tax assets.</font></p>

<p><font size="2">In application of IFRS 1, the following is the
indication of: (i) balance sheet at December 31, 2004 restated
under IFRS; (ii) profit and loss account of 2004 restated under
IFRS; (iii) the reconciliation between shareholders&#146; equity,
including minority interest, of 2003 and 2004 reported under
Italian GAAP and shareholders&#146; equity under IFRS; (iv) the
reconciliation between net profit of the Group at December 31,
2004 reported under Italian GAAP and net profit under IFRS.</font></p>

<p><font size="2">The international accounting principles are
reported in the section &quot;Principles of consolidation&quot;.
The main options provided under IFRS 1 and adopted in the first
time application of IFRS concern the non-reopening of the
business combinations and the designation of January 1, 2005, as
the date of the first application of IAS 32 and 39, concerning
the valuation of financial instruments, including derivatives.</font></p>

<p><font size="2"><b>Inclusion of Saipem in consolidation</b></font></p>

<p><font size="2">As regards to the information reported in the
reports of the year 2005, the following restatements and
reconciliations have been modified to include the recent
guidelines of the International Accounting Standards Board
(IASB), relating to the conception of &quot;de facto&quot;
control and providing the inclusion in the scope of the
consolidation of the Saipem SpA and its subsidiaries.</font></p>

<p><font size="2">Saipem SpA, in which Eni held a 43.26% share of
voting stock as of December 31, 2005, was excluded from
consolidation due to a restrictive interpretation of the
provisions of IAS 27 Consolidated Financial Statements and
Accounting for Investments in Subsidiaries, according to which
full consolidation is admissible only if the parent company holds
the majority of voting rights exercisable in ordinary
shareholders&#146; meetings, or failing this, when there exists
an agreement among shareholders or other situations that give to
the parent company the power to appoint the majority of the Board
of Directors. Under this interpretation Saipem SpA, despite being
controlled by Eni in accordance with article 2359, paragraph 2 of
the Italian Civil Code, was accounted for under the equity
method.</font></p>

<p><font size="2">IASB is reviewing the requirements of IAS 27;
in October 2005, IASB Update published a statement indicating
that the concept of control as defined by IAS 27 included the
situation as described by article 2359, paragraph 2 of the
Italian Civil Code, despite the fact that the lack of precise
indications allows also for a different interpretation of this
standard. IASB declared its intention to provide more detailed
indications on the exercise of control in its new version of IAS
27. In consideration of the intention expressed by IASB, Eni
included Saipem SpA and its subsidiaries in consolidation under
IFRS starting January 1, 2004, with the aim of giving an economic
and financial state of the Group more consistent with its
commercial situation.</font></p>

<p><strong>Balance sheet at December 31, 2004</strong><br>
<font size="2">The following is the reconciliation to IFRS of
Eni&#146;s balance sheet calculated in accordance with Italian
GAAP at December 31, 2004:</font></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>Italian GAAP<br>
        2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Exclusion of joint venture</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Pro-forma</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Adjustments</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>IFRS</strong></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2"><b>ASSETS</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>
        <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="40%"><font size="2"><b>Current
        assets</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Cash and cash equivalent</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="2">1,264</font></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="2">(261</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,003</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="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="2">1,003</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        financial assets for trading or available for sale</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="2">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="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,288</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="2">(22</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,266</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Trade and other receivables</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="2">13,715</font></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="2">(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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,620</font></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="2">114</font></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="2">13,734</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Inventories</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="2">2,658</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="2">(135</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,523</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="2">324</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="2">2,847</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Income tax receivables</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="2">702</font></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="2">(28</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">674</font></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="2">674</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        current 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%"><p align="right"><font
        size="2">629</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="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">628</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="2">(40</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">588</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total current assets</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"><p
        align="right"><font size="2"><b>20,260</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="2"><b>(524</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>19,736</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>376</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="2"><b>20,112</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Non-current
        assets</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Property, plant and equipment</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="2">37,616</font></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="2">(293</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">37,323</font></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="2">3,263</font></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="2">40,586</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Inventories
        - compulsory stock</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="2">662</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%"><p align="right"><font
        size="2">662</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="2">724</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="2">1,386</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Intangible assets</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="2">3,190</font></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="2">3,190</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,313</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Investments
        accounted for using the equity method</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="2">2,753</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="2">313</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="2">3,066</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="2">90</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="2">3,156</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Other investments</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="2">529</font></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="2">529</font></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="2">529</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        financial 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%"><p align="right"><font
        size="2">932</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="2">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="2">936</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%"><p align="right"><font
        size="2">936</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Deferred tax assets</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="2">2,203</font></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="2">2,203</font></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="2">(376</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,827</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        non-current 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%"><p align="right"><font
        size="2">967</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="2">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">950</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="2">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="2">1,008</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total non-current assets</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"><p
        align="right"><font size="2"><b>48,852</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="2"><b>7</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="2"><b>48,859</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="2"><b>3,882</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="2"><b>52,741</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>TOTAL
        ASSETS</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%"><p align="right"><font
        size="2"><b>69,112</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="2"><b>(517</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>68,595</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="2"><b>4,258</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="2"><b>72,853</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</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>
        <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="40%"><font size="2"><b>Current
        liabilities</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Current financial 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"><p
        align="right"><font size="2">4,115</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">35</font></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="2">4,150</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">&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="2">4,150</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Current
        portion of long-term debt</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="2">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="2">(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="8%"><p align="right"><font
        size="2">927</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%"><p align="right"><font
        size="2">927</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Trade and other payables</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="2">11,008</font></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="2">(469</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,539</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,533</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Taxes
        payable</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="2">2,514</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="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,498</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%"><p align="right"><font
        size="2">2,498</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Other current 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"><p
        align="right"><font size="2">517</font></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="2">(12</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">505</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Total
        current liabilities</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%"><p align="right"><font
        size="2"><b>19,090</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="2"><b>(471</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>18,619</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="2"><b>(6</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>18,613</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Non-current liabilities</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>
        <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="40%"><font size="2">Long-term
        debt</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="2">7,674</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="2">17</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="2">7,691</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="2">(84</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">7,607</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Provisions 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"><p
        align="right"><font size="2">6,107</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,103</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(367</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,736</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Provisions
        for employee benefits</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="2">820</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="2">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">815</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="2">167</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="2">982</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">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"><p
        align="right"><font size="2">2,533</font></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="2">(59</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,474</font></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="2">1,474</font></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="2">3,948</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        non-current 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="2">422</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="2">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="2">427</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%"><p align="right"><font
        size="2">427</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total non-current liabilities</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"><p
        align="right"><font size="2"><b>17,556</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="2"><b>(46</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17,510</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="2"><b>1,190</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="2"><b>18,700</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>TOTAL
        LIABILITIES</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%"><p align="right"><font
        size="2"><b>36,646</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="2"><b>(517</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>36,129</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="2"><b>1,184</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="2"><b>37,313</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>SHAREHOLDERS&#146; EQUITY</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>
        <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="40%"><font size="2">Minority
        interests</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="2">2,128</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%"><p align="right"><font
        size="2">2,128</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="2">1,038</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="2">3,166</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" bgcolor="#EEEEEE"><font size="2">Eni
        shareholders&#146; equity</font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">30,338</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE"><font size="2">&nbsp;<sup>(1)</sup></font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">30,338</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">2,036</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">32,374</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>TOTAL
        SHAREHOLDERS&#146; EQUITY</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%"><p align="right"><font
        size="2"><b>32,466</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>32,466</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="2"><b>3,074</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="2"><b>35,540</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL LIABILITIES AND SHAREHOLDERS&#146;
        EQUITY</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"><p
        align="right"><font size="2"><b>69,112</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="2"><b>(517</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>68,595</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="2"><b>4,258</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="2"><b>72,853</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="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">Net of
        treasury shares in portfolio at the date for euro 3,229
        million (IFRS require that treasury shares be deducted
        from shareholders&#146; equity).</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><strong>Profit and loss account at December 31, 2004</strong><br>
<font size="2">The following is the reconciliation to IFRS of
Eni&#146;s profit and loss account for the year ended December
31, 2004:</font></p>

<p>&nbsp;</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="9%"><p align="center"><font
        size="1"><strong>2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Exclusion of joint venture</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Restatement of extraordinary<br>
        items</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Pro-forma</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Adjustments</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>IFRS</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Net sales from operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58,382</font></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="2">(916</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="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="2">57,466</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">57,545</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        income and revenues</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,298</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="2">(12</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">79</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="2">1,365</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="2">12</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="2">1,377</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Purchases, services 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="2">(39,092</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">679</font></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="2">(623</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(39,036</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">689</font></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="2">(38,347</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Payroll
        and related costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,264</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">(54</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,254</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">9</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="2">(3,245</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Depreciation, amortization and impairments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">72</font></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="2">(18</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,807</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(124</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,931</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Operating
        profit</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>12,463</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="2"><b>(113</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(616</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>11,734</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="2"><b>665</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="2"><b>12,399</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Financial expense, net</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6</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="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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(55</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(156</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        income (expense) from investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">229</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="2">81</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="2">608</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="2">918</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="2">(98</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">820</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Profit before extraordinary items and income
        taxes</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,597</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="2"><b>(38</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(8</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,551</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="2"><b>512</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="2"><b>13,063</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Extraordinary
        items</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="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="2">56</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Profit before income taxes</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,541</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="2"><b>(38</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>48</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="2"><b>12,551</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="2"><b>512</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="2"><b>13,063</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Income
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,653</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">(48</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,663</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(859</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5,522</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Profit before minority interest</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,888</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="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="2"><b>7,888</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(347</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,541</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Minority
        interest in net profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(614</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="2">(614</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">132</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="2">(482</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Net profit</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,274</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>
        <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="2"><b>7,274</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="2"><b>(215</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><strong>Reconciliation of shareholders&#146; equity at
December 31, 2003</strong><br>
<font size="2">The following is the reconciliation of
shareholders&#146; equity as at December 31, 2003, including
minority interest, determined under Italian GAAP to IFRS:</font></p>

<p><font size="1">(million euro)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td align="center" valign="bottom" width="9%"><p
        align="left"><font size="2"><strong>Items</strong> <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><strong>2003 Shareholders&#146; equity</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2"><strong>28,318</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">1.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        useful lives of gas pipelines, compression stations,
        distribution networks and other assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">1,570</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">2.</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different recognition of deferred tax</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">1,233</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">3.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Application
        of the weighted-average cost method instead of LIFO in
        inventory valuation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">479</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">4.</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different criteria of capitalization of
        financial charges</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">394</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">5.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        recognition of the provisions for contingencies </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">269</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">6.</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of the capitalization of estimated costs
        for asset retirement obligations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">152</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">7.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Underlifting</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">61</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">8.</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Write-off of the difference between nominal and
        present value of deferred taxation in business
        combinations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(514</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">9.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Adjustment
        of tangible and intangible assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(189</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">10.</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Employee benefits</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(92</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"><font
        size="2">11.</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Effects on
        investments accounted for under the equity method</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(43</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other net adjustments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(121</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2"><strong>Net
        changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2"><strong>3,199</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><strong>Shareholders&#146; equity under IFRS</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2"><strong>31,517</strong></font></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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each number
        refers to the illustration provided in the next paragraph
        &#147;Description of main changes&#148;.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><strong>Reconciliation of shareholders&#146; equity at
December 31, 2004</strong><br>
<font size="2">The following is the reconciliation of
shareholders&#146; equity as at December 31, 2004, including
minority interest, determined under Italian GAAP to IFRS:</font></p>

<p><font size="1">(million euro)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td align="center" valign="bottom" width="9%"><p
        align="left"><font size="2"><strong>Items</strong> <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</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="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2"><strong>2004
        Shareholders&#146; equity</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><strong>32,466</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different useful lives of gas pipelines,
        compression stations, distribution networks and other
        assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,501</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">2.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        recognition of deferred tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">563</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">3.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Application of the weighted-average cost method
        instead of LIFO in inventory valuation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">677</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">4.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        criteria of capitalization of financial charges</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">393</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">5.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different recognition of the provisions 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="2">295</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">6.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Effect of
        the capitalization of estimated costs for asset
        retirement obligations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">215</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">7.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Underlifting</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">87 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">8.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Write-off
        of the difference between nominal and present value of
        deferred taxation in business combinations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(470</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">9.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Adjustment of tangible and intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(130</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">10.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Employee
        benefits</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(81</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">11.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effects on investments accounted for under the
        equity method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">12.2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Amortization
        of goodwill</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">102</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other net adjustments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2"><strong>Net
        changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><strong>3,074 </strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><strong>Shareholders&#146; equity under IFRS</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>35,540</strong></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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each number
        refers to the illustration provided in the next paragraph
        &#147;Description of main changes&#148;.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><strong>Reconciliation of consolidated net profit at December
31, 2004</strong><br>
<font size="2">The following is the reconciliation of net profit
for the year ended December 31, 2004 from Italian GAAP to IFRS:</font></p>

<p>&nbsp;</p>

<p><font size="1">(million euro)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td align="center" valign="bottom" width="9%"><p
        align="left"><font size="2"><strong>Items</strong> <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%">&nbsp;</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="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><strong>2004 consolidated net profit under
        Italian GAAP</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>7,274</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">1.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        useful lives of gas pipelines, compression stations,
        distribution networks and other assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(70</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">2.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different recognition of deferred tax</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(671</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">3.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Application
        of the weighted-average cost method instead of LIFO in
        inventory valuation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">199</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">4.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Different criteria of capitalization of
        financial charges</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">5.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Different
        recognition of the provisions for contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">6.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of the capitalization of estimated costs
        for asset retirement obligations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">7.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Underlifting</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">33 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">8.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Write-off of the difference between nominal and
        present value of deferred taxation in business
        combinations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">9.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Adjustment
        of tangible and intangible assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">39</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">10.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Employee benefits</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2">11.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Effects on
        investments accounted for under the equity method</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">126</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">12.</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other changes in 2004 results under IFRS</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(109</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%"><p align="center"><font
        size="2"><em>12.1</em></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2"><em>Adjustment
        on gain from sale of a 9.054% interest in Snam Rete Gas</em></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><em>(211</em></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><em>)</em></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="center"><font size="2"><em>12.2</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><em>Amortization of goodwill</em></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>102</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2">Other net
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(31</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of IFRS adjustment on minority interest <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">132</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="80%"><font size="2"><strong>Net
        changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><strong>(215</strong></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><strong>)</strong></font></td>
    </tr>
    <tr>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><font size="2"><strong>Shareholders&#146;
        equity under IFRS</strong></font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2"><strong>7,059</strong></font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each number
        refers to the illustration provided in the next paragraph
        &#147;Description of main changes&#148;.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(1)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">This adjustment derives
        from the attribution of their share of IFRS adjustments
        to minority interest.</font></td>
    </tr>
</table>
</center></div>

<p><font size="3"><b>Description of main changes</b></font></p>

<p><font size="2">The following is a description of the main
changes introduced in the balance sheet of Eni for 2003, whose
effects are reflected in the profit and loss account and balance
sheet for the 2004 and in the balance sheet at December 31, 2004.</font></p>

<p><font size="2"><b>1. Different useful lives of gas pipelines,
compression stations, distribution networks and other assets</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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
provisions at December 31, 1999, was depreciated based on their
residual useful life both under Italian and U.S. GAAP.</font></p>

<p><font size="2">For the first application of IFRS, the adoption
of the retrospective method implies the adoption of the new
principles as if they had always been applied using the best
information available at each time frame. Therefore, the book
value of gas pipelines, compression stations and distribution
networks, at January 1, 2004 was restated by using until 1999 the
internationally accepted rate of 25 years; from 2000 onwards the
residual value was depreciated according to the useful lives
estimated by the Authority for Electricity and Gas.</font></p>

<p><font size="2">Consistent with this approach, the book value
of tanker ships at January 1, 2004 was restated due to the
revision of their useful life using until 2001 the
internationally accepted rate of 20 years; from 2002 onwards
their residual value was depreciated according to an estimated
useful life of 30 years defined after their conferral from Snam
SpA to LNG Shipping SpA.</font></p>

<p><font size="2">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 are recorded
separately in order to be depreciated according to their useful
life; land parcels, which cannot be depreciated, are recorded
separately even when they are bought along with buildings.</font></p>

<p><font size="2">The restatement determined an increase in fixed
assets of euro 2,563 million with a corresponding entry to
shareholders&#146; equity (euro 1,570 million) and to deferred
tax liabilities (euro 993 million).</font></p>

<p><font size="2">The adoption of IFRS resulted in a decrease in
2004 results of euro 70 million.</font></p>

<p><font size="2"><b>2. Different recognition of deferred tax</b></font></p>

<p><font size="2">Changes in shareholders&#146; equity of euro
1.233 were determined in particular by the following causes.</font></p>

<p><font size="2"><i>2.1 Recognition of deferred tax assets on
the revaluation of assets (Law 342/2000)</i></font></p>

<p><font size="2">Under Italian GAAP deferred tax assets are
recorded if recoverable with &quot;reasonable certainty&quot;.</font></p>

<p><font size="2">Under IFRS deferred tax assets are recorded if
their recovery is more likely than not.</font></p>

<p><font size="2">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 temporary 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%</font><a href="#F(2)"><font
size="2"><sup>2</sup></font></a><font size="2"> of depreciation
estimated in the 2004-2007 plan on the deductible timing
difference.</font></p>

<p><font size="2">Under IFRS, deferred taxes has been recognized
on the entire timing difference at the current statutory tax rate
(37.25%).</font></p>

<p><font size="2">The application of this principle resulted in
an increase in deferred tax assets of euro 828 million with a
corresponding entry to shareholders&#146; equity.</font></p>

<p><font size="2">The adoption of IFRS resulted in a decrease in
2004 results of euro 266 million, following the
&quot;reversal&quot; of taxes related to accelerated
depreciations</font><a href="#F(3)"><font size="2"><sup>3</sup></font></a><font
size="2">.</font></p>

<p><font size="2"><i>2.2 Recognition of deferred tax assets on
Stogit&#146;s inventories</i></font></p>

<p><font size="2">In 2003 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. A portion of the timing difference concerns
the inventories of natural gas; however, in Eni&#146;s 2003
Consolidated Financial Statements 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.</font></p>

<p><font size="2">The application of IFRS resulted in the
recognition of deferred tax assets of euro 259 million, with a
corresponding entry to shareholder&#146;s equity.</font></p>

<p><font size="2">In Eni&#146;s 2004 Consolidated Financial
Statements the deferred tax assets were recognized on the
temporary difference related to inventories because Law 239/2001
(so called Marzano Law) permitted to set the year of recovery</font><a
href="#F(4)"><font size="2"><sup>4</sup></font></a><font size="2">;
such effect resulted on equivalent decrease in the 2004 result.</font></p>

<p><font size="2"><i>2.3 Other effects of the different
recognition of deferred tax assets</i></font></p>

<p><font size="2">The application of the &quot;more likely than
not&quot; criterion rather than that of the &quot;reasonable
certainty&quot; of recoverability of other deductible temporary
differences resulted in the recognition of deferred tax assets of
euro 146 million with a corresponding entry to shareholders&#146;
equity. Such deferred taxes were recognized in Eni&#146;s 2004
Consolidated Financial Statements following the fulfillment of
the conditions for their recognition; such effect resulted in an
equivalent decrease in the 2004 result.</font></p>

<p><font size="2"><b>3. Application of the weighted-average cost
method instead of LIFO</b></font></p>

<p><font size="2">Under Italian GAAP the cost of inventories may
be determined with the weighted-average cost method or with the
FIFO or LIFO methods. Until January 1, 2004 Eni applied the LIFO
method, in its evaluation of crude oil, natural gas and oil
products inventories applied on an annual basis.</font></p>

<p><font size="2">IFRS do not allow the use of the LIFO method;
they allow the FIFO method and the weighted-average cost.</font></p>

<p><font size="2">The application of the weighted-average cost on
a three-month basis in the evaluation of crude oil, natural gas
and refined products inventories resulted in an increase in the
value of inventories of euro 764 million</font><a href="#F(5)"><font
size="2"><sup>5</sup></font></a><font size="2"> with a
corresponding entry to shareholders&#146; equity (euro 479
million) and to deferred tax liabilities (euro 285 million).</font></p>

<p><font size="2">With the application of the LIFO method,
changes in oil and refined products prices had no impact on the
evaluation of inventories, which was affected only by declines in
volumes. With the adoption of the weighted-average cost, changes
in oil and refined products prices have a direct effect on 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.</font></p>

<p><font size="2">The adoption of IFRS resulted an increase in
the 2004 results of euro 199 million, due to higher oil and gas
prices.</font></p>

<p><font size="2"><b>4. Different criteria of capitalization of
financial charges</b></font></p>

<p><font size="2">Under Italian GAAP financial charges are
capitalized when incurred within the amount not financed by
internally-generated funds or contribution by third parties.</font></p>

<p><font size="2">Under IFRS, when a relevant time interval is
necessary until the capital asset is ready for use, finance
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 expenditures had not been made.</font></p>

<p><font size="2">The application of this principle resulted in
an increase in the book value of fixed assets of euro 615 million
with a corresponding entry to shareholders&#146; equity (euro 394
million) and to deferred tax liabilities (euro 221 million).</font></p>

<p><font size="2">The adoption of IFRS resulted in a decrease in
2004 results of euro 3 million (the effect of higher amortization
was partially offset by the increase of financial charges
capitalized).</font></p>

<p><a
name="5. Different recognition of the provisions for contingencies"><font
size="2"><b>5. Different recognition of the provisions for
contingencies</b></font></a></p>

<p><font size="2">Under Italian GAAP the provisions for
contingencies concern 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 provisions
for contingencies are stated on an undiscounted basis.</font></p>

<p><font size="2">Under IFRS a provision 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 behaviors 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.</font></p>

<p><font size="2">As for the provision 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
affected by the restructuring. The plan must have commenced or be
properly communicated to the parties involved before period end,
generating the expectation that the company will carry out the
plan.</font></p>

<p><font size="2">As for provision 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.</font></p>

<p><font size="2">No provision is made 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.</font></p>

<p><font size="2">As a consequence of the absence of a current
obligation, the application of this principle resulted in a
reversal of the provisions for contingencies of euro 327 million
with a corresponding entry to shareholders&#146; equity (euro 269
million), to deferred tax liabilities (euro 36 million) and to a
decrease in other assets (euro 22 million) referred to the
portion of re-insured risks.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 31 million.</font></p>

<p><font size="2"><b>6. Effect of the capitalization of costs for
asset retirement obligations</b></font></p>

<p><font size="2">Under Italian GAAP, site restoration and
abandonment costs are allocated annually in a specific provision
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 provision 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.</font></p>

<p><font size="2">Under IFRS, estimated site restoration and
abandonment costs are recorded in a specific provision with a
corresponding entry to 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 profit and loss
account through the amortization process. The provision, and
consequently the assets&#146; book value, is periodically
adjusted to reflect the changes in the estimates of the costs, of
the timing and of the discount rate.</font></p>

<p><font size="2">The application of this principle resulted in
an increase in fixed assets of euro 254 million, in
shareholders&#146; equity of euro 152 million and in deferred tax
liabilities of euro 158 million, and a decrease in the provisions
for site abandonment and restoration of euro 56 million.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 63 million.</font></p>

<p><font size="2"><b>7. Underlifting</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under Italian GAAP, this credit is evaluated on
the basis of production costs; under IFRS it is evaluated at
current prices at period end.</font></p>

<p><font size="2">The application of this principle resulted in
an increase in other assets of euro 78 million with a
corresponding entry to shareholders&#146; equity (euro 61
million) and to deferred tax liabilities (euro 17 million).</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 33 million.</font></p>

<p><font size="2"><b>8. Write-off of the difference between
nominal and present value of deferred taxation in business
combinations</b></font></p>

<p><font size="2">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 accrued assets.</font></p>

<p><font size="2">Under IFRS this difference is recognized under
&quot;Goodwill&quot;; however, in the event of the first
application goodwill can be adjusted only in case of specific
circumstances that do not occur in this case. This difference is
therefore written off because it cannot be considered an asset
under IFRS.</font></p>

<p><font size="2">The application of this principle resulted in a
decrease in shareholders&#146; equity of euro 514 million with a
corresponding entry to deferred tax assets.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 38 million.</font></p>

<p><font size="2"><b>9. Adjustment of tangible and intangible
assets</b></font></p>

<p><font size="2">The decrease in shareholders&#146; equity of
euro 189 million related in particular to the following aspects.</font></p>

<p><font size="2"><i>9.1 Intangible assets</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">IFRS require these costs to be charged against
the profit and loss account, except for establishment and
issuance of capital stock of the parent company that are
recognized as a decrease in shareholders&#146; equity net of the
relevant fiscal effect.</font></p>

<p><font size="2">Under Italian GAAP costs for software
development can be capitalized under certain circumstances. IFRS
pose more stringent conditions for their capitalization.</font></p>

<p><font size="2">The application of these principles resulted in
the write-off of intangible assets for euro 114 million with a
corresponding entry to a decrease in shareholders&#146; equity
(euro 81 million) and the recognition of deferred tax assets
(euro 33 million).</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 33 million.</font></p>

<p><font size="2"><i>9.2 Revaluation of assets</i></font></p>

<p><font size="2">Under Italian GAAP revaluation of tangible
assets is allowed under specific law provisions within the limit
of their recovery value.</font></p>

<p><font size="2">IFRS prohibit this kind of tangible asset
revaluation.</font></p>

<p><font size="2">The application of this principle resulted in a
decrease in tangible assets of euro 75 million with a
corresponding entry to a decrease in shareholders&#146; equity
(euro 54 million) and the recognition of deferred tax assets
(euro 21 million). The decrease in fixed assets takes into
account the restatement of gains/losses on disposal on the basis
of the historical cost and the recalculation of amortization
until December 31, 2003.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 results of euro 5 million.</font></p>

<p><font size="2"><i>9.3 Pre-development costs</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under IFRS these costs are considered
exploration costs and are expensed when incurred.</font></p>

<p><font size="2">The application of this principle resulted in
the write-off of capitalized pre-development costs for euro 71
million with a corresponding entry to a decrease in
shareholders&#146; equity (euro 54 million) and the recognition
of deferred tax liabilities (euro 17 million).</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 of euro 1 million.</font></p>

<p><font size="2"><b>10. Employee benefits</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under IFRS employee termination benefits (e.g.
pension payments, life insurance payments, medical assistance
after retirement, etc.) 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.</font></p>

<p><font size="2">Plans with defined benefits are pension,
insurance or healthcare plans which provide for the
company&#146;s obligation, also in the form of implicit
obligation (see the above mentioned </font><a
href="#5. Different recognition of the provisions for contingencies"><font
size="2">item 5</font></a><font size="2">), to provide non
formalized benefits to its former employees</font><a href="#F(6)"><font
size="2"><sup>6</sup></font></a><font size="2">. The related
discounted charges, determined with actuarial assumptions</font><a
href="#F(7)"><font size="2"><sup>7</sup></font></a><font size="2">,
are accrued annually on the basis of the employment periods
required for the granting of such benefits.</font></p>

<p><font size="2">The application of this principle resulted in a
decrease in shareholders&#146; equity of euro 92 million, the
recognition of deferred tax assets (euro 54 million) with a
corresponding entry to an increase in the provisions for
contingencies of euro 146 million, referred in particular to
charges for medical assistance granted upon termination and to
pension plans outside Italy.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 of euro 8 million.</font></p>

<p><font size="2"><b>11. Effects on investments accounted for
under the equity method</b></font></p>

<p><font size="2">Joint ventures and affiliates are accounted for
under the equity method. The application of IFRS to the initial
balance at January 1, 2004 of assets and liabilities of these
companies resulted in a decrease in investments of euro 43
million with a corresponding entry to shareholders&#146; equity.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 of euro 126 million, essentially related to the elimination
of the amortization of goodwill (see Note 12.2 below).</font></p>

<p><font size="2"><b>12. Other changes in 2004 result under IFRS</b></font></p>

<p><font size="2">The decrease in 2004 results of euro 109
million related in particular to the following.</font></p>

<p><font size="2"><i>12.1 Adjustment on gain from sale of a
9.054% interest in Snam Rete Gas</i></font></p>

<p><font size="2">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 SpA carried out in 2004 increased by euro 2,335 million
related essentially to an increase in the book value of natural
gas pipelines (see item 1) and deferred tax assets (see item
2.1).</font></p>

<p><font size="2">The adoption of IFRS resulted in a decrease in
2004 results of euro 211 million.</font></p>

<p><font size="2"><i>12.2 Amortization of goodwill</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under IFRS goodwill cannot be amortized, but it
is subject to a yearly evaluation in order to define the relevant
impairment, if needed.</font></p>

<p><font size="2">The adoption of IFRS resulted in an increase in
2004 of euro 102 million.</font></p>

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

<p align="left"><font size="3"><strong>Balance sheet</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Note</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>ASSETS</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="2"><b>Current assets</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="2">Cash and
        cash equivalent</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">1,003</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="2">1,333</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other financial assets for trading or available
        for sale</font></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>
        <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="2">1,266</font></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="2">1,368</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Trade and
        other receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">13,734</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="2">17,902</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,847</font></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="2">3,563</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Income tax
        receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">674</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="2">697</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other current assets</font></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>
        <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="2">588</font></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="2">369</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Total
        current assets</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%"><p align="right"><font
        size="2"><b>20,112</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="2"><b>25,232</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Non-current assets</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="2">Property,
        plant and equipment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">40,586</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="2">45,013</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Inventories - compulsory stock</font></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>
        <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="2">1,386</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="2">2,194</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Intangible
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">9</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="2">3,313</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="2">3,194</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Investments accounted for using the equity
        method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,156</font></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="2">3,890</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Other
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">10</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="2">529</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="2">421</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other financial assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,050</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Deferred
        tax assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">12</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="2">1,827</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="2">1,861</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other non-current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,008</font></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="2">995</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Total
        non-current assets</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%"><p align="right"><font
        size="2"><b>52,741</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="2"><b>58,618</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL ASSETS</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"><p
        align="right"><font size="2"><b>72,853</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="2"><b>83,850</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>LIABILITIES
        AND SHAREHOLDERS&#146; EQUITY</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="2"><b>Current liabilities</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="2">Current
        financial liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">14</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="2">4,150</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="2">4,612</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Current portion of long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">927</font></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="2">733</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Trade and
        other payables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">15</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="2">10,533</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="2">13,095</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Taxes payable</font></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>
        <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="2">2,498</font></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="2">3,430</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Other
        current liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">17</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="2">505</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="2">613</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Total current liabilities</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"><p
        align="right"><font size="2"><b>18,613</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="2"><b>22,483</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Non-current
        liabilities</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="2">Long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">7,607</font></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="2">7,653</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Provisions
        for contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">19</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="2">5,736</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="2">7,679</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Provisions for employee benefits</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,031</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Deferred
        tax liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">21</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="2">3,948</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="2">4,890</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other non-current liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">427</font></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="2">897</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Total
        non-current liabilities</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%"><p align="right"><font
        size="2"><b>18,700</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="2"><b>22,150</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL LIABILITIES</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"><p
        align="right"><font size="2"><b>37,313</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="2"><b>44,633</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>SHAREHOLDERS&#146;
        EQUITY</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">23</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>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Minority interests</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"><p
        align="right"><font size="2"><b>3,166</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,349</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Eni
        shareholders&#146; equity:</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="2">Share capital: 4,005,358,876 fully paid shares
        nominal value euro 1 each (4,004,424,476 shares at
        December 31, 2004)</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="2">4,004</font></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="2">4,005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Share
        premium</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="2">Other reserves</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="2">9,629</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,910</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Retained
        earnings</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="2">14,911</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="2">17,381</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Net profit</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="2">7,059</font></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="2">8,788</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Treasury
        shares</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="2">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,216</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Total Eni shareholders&#146; equity</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"><p
        align="right"><font size="2"><b>32,374</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>36,868</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>TOTAL
        SHAREHOLDERS&#146; EQUITY</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%"><p align="right"><font
        size="2"><b>35,540</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="2"><b>39,217</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL LIABILITIES AND SHAREHOLDERS&#146;
        EQUITY</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"><p
        align="right"><font size="2"><b>72,853</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="2"><b>83,850</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p align="left"><font size="3"><strong>Profit and loss account</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Note</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>REVENUES</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">Net sales
        from operations</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="2">57,545</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="2">73,728</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Other income and revenues</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="2">1,377</font></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="2">798</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>TOTAL
        REVENUES</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%"><p align="right"><font
        size="2"><b>58,922</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="2"><b>74,526</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Operating expenses</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">26</font></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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Purchases,
        services and other</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="2">38,347</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="2">48,567</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Payroll and related costs</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="2">3,245</font></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="2">3,351</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Depreciation,
        amortization and impairments</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="2">4,931</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="2">5,781</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Operating profit</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"><p
        align="right"><font size="2"><b>12,399</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>16,827</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Financial
        income (expense)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">27</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>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Financial income</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="2">2,589</font></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="2">3,131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Financial
        expense</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="2">(2,745</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,497</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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">&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="2"><b>(156</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(366</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Income
        (expense) from investments</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">28</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>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Effects of investments accounted for using the
        equity method</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="2">332</font></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="2">737</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Other
        income (expense) from investments</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="2">488</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="2">177</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">&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="2"><b>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="2"><b>914</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Profit
        before 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%"><p align="right"><font
        size="2"><b>13,063</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="2"><b>17,375</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Income taxes</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(5,522</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(8,128</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>Net
        profit</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%"><p align="right"><font
        size="2"><b>7,541</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="2"><b>9,247</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Pertaining to:</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="2">- Eni</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="2">7,059</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="2">8,788</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">- minority interest</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="2">482</font></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="2">459</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%">&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="2"><b>7,541</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="2"><b>9,247</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2"><b>Earnings per share pertaining to Eni </b>(euro
        per share)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="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="2">- basic</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="2">1.87</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="2">2.34</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">- diluted</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="2">1.87</font></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="2">2.34</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p align="left"><font size="3"><strong>Statement of changes in
shareholders&#146; equity</strong></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="17%">&nbsp;</td>
        <td valign="bottom" width="69%"><p align="center"><font
        size="1"><strong>Eni shareholders&#146; equity</strong></font></p>
        </td>
        <td valign="bottom" width="14%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="17%">&nbsp;</td>
        <td valign="bottom" width="69%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="14%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="16%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Share capital</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Legal reserve of Eni SpA</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Reserve for treasury shares</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Other reserves</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Cumulative translation adjustment reserve</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Treasury shares</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Retained earnings</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Interim dividend</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Net profit for the period</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Total</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Minority interests</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1">Total shareholders&#146; equity</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Balance at December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,003 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>959 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,397 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,200 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(2,505</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(3,164</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>13,221 </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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,622 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>28,318</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Changes in accounting principles</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,234 </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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,234 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,199</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Annulment
        of exchanges differences</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">2,505 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(2,505</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Adjusted balance at January 1, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,003 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>959 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,397 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,200 </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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(3,164</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,950 </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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>28,930 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,587 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>31,517</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2"><b>Net
        profit for the year</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>7,059 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>7,059 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>482 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>7,541</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Net income (expense) recognized directly in
        equity</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Exchange
        differences from translation of financial statements
        denominated in currencies other than euro </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(750</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(750</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><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="5%"><p align="right"><font
        size="2">(749</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(750</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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(750</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(749</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2"><b>Total
        (expense) income for the period</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(750</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>7,059</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>6,309</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>483</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>6,792</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Transactions with shareholders</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Dividend
        distribution of Eni SpA (euro 0.75 per share)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(2,828</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(2,828</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(2,828</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Dividend distribution of other companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(248</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Allocation
        of 2003 net profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">2,735</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(2,757</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Shares repurchased (Note 23)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(70</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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(70</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Shares
        issued under stock grant plans</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><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="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Treasury shares sold under incentive plans for
        Eni managers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5</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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>1</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(5</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>26</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(65</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><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="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(5,585</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(2,893</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(248</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(3,141</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Other changes in shareholders&#146; equity</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Cost of
        stock option</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">3 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Former Italgas SpA reserves reconstituted</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(43</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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Reserves
        from merger of EniData SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><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="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Reclassification</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">775</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(775</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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Sale of
        9.054% of Snam Rete Gas SpA share capital</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">326</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">326</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Exchange differences arising on the distribution
        of dividends and other changes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(38</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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>739 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>63 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(774</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>28 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>344 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>372</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Balance at December 31, 2004 </b>(Note 23)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,004 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>959 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,392 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,965 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(687</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(3,229</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14,911 </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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>32,374 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,166 </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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>35,540</b></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 valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Changes in
        accounting principles (IAS 32 and 39) (Notes 2-4-6-17)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(40</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(27</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Adjusted balance at January 1, 2005</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,004</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>959</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,392</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,978</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(687</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(3,229</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14,871</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>32,347</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,178</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>35,525</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2"><b>Net
        profit for the year</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>8,788</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>8,788</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>459</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>9,247</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Net income (expense) recognized directly in
        equity</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Variation
        of the fair value of financial assets for trading (Note
        2)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Variation of the fair value of cash flow hedge
        derivative contracts (Notes 6-17)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Exchange
        differences from translation of financial statements
        denominated in currencies other than euro </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">1,497</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">1,497</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">1,512</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>22</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,497</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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,519</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>15</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,534</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2"><b>Total
        (expense) income for the period</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>22</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>1,497</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>8,788</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>10,307</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>474</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>10,781</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Transactions with shareholders</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Dividend
        distribution of Eni SpA (euro 0.90 per share) (Note 23)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(3,384</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(3,384</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(3,384</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Interim dividend (euro 0.45 per share) (Note 23)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,686</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,686</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,686</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Dividend
        distribution of other companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1,218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1,218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Allocation of 2004 net profit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,300</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,375</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,675</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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Shares
        repurchased (Note 23)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1,034</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1,034</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(1,034</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Shares issued under stock grant plans</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Treasury
        shares sold under incentive plans for Eni managers</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(47</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(47</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,346</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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(987</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,375</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,686</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(7,059</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(6,057</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,218</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(7,275</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2"><b>Other
        changes in shareholders&#146; equity</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Cost of stock option</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="2">Sale of
        consolidated companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(40</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">(40</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2">Exchange differences arising on the distribution
        of dividends and other changes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" 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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">135</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">266</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">221</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>5</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>131</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>135</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>271</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>(85</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2"><b>186</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="2"><b>Balance at December 31, 2005</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,005</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>959</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,345</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,351</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>941</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(4,216</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17,381</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,686</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,788</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>36,868</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,349</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>39,217</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

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

<p align="left"><font size="3"><strong>Statement of cash flows</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Cash flow from operating activities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Net profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">7,541</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="2">9,247</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Depreciation and amortization</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,598</font></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="2">5,509</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Writedowns
        (revaluations), net</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">27</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="2">(288</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Net change in provisions 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="2">418</font></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="2">1,279</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Net change
        in the provisions for employee benefits</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">49</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="2">18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Gain on disposal of assets, net</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(793</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(220</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Dividend
        income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(72</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(33</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(198</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(214</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Interest
        expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">567</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="2">654</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Exchange differences</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(79</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Current
        and deferred income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5,522</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="2">8,128</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><i>Cash generated from operating profit before
        changes in working capital</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17,580</font></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="2">24,016</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">(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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(355</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,402</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- accounts
        receivable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,241</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,413</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- other assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43</font></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="2">351</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- trade
        and other accounts payable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">727</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="2">3,030</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- other liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(83</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><i>Cash
        from operations</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">16,671</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="2">21,594</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Dividends received</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">394</font></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="2">366</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Interest
        received</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">167</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="2">214</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest paid</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(533</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(619</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Income
        taxes paid</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,199</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,619</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net cash provided from operating activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,500</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14,936</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Cash
        flow from investing activities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Investments:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(714</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(856</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        intangible assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,785</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,558</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- tangible assets</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="2">(73</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        consolidated subsidiaries and businesses</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(316</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(54</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(675</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(464</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        securities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(470</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(683</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- financing receivables</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="2">- change
        in accounts payable and receivable in relation to
        investments and capitalized depreciation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(13</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">149</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><i>Cash flow from investments</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8,973</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8,539</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Disposals:</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="2">- intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- tangible
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">279</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="2">99</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- consolidated subsidiaries and businesses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">538</font></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="2">252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">61</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="2">178</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">659</font></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="2">369</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        financing receivables </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">808</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="2">804</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- change in accounts receivable in relation to
        disposals</font></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>
        <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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><i>Cash
        flow from disposals</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,357</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="2">1,724</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net cash used in investing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(6,616</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(6,815</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
</table>
</center></div>

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

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Proceeds
        from long-term debt</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="2">1,229</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="2">2,755</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Payments of long-term debt</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="2">(797</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,978</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">Reductions
        of short-term debt</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="2">(4,175</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(317</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>(3,743</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(540</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Capital
        contributions/payments by/to minority shareholders</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="2">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="2">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Sale (acquisition) of additional interests in
        subsidiaries</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="2">621</font></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="2">(33</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">Dividends
        to minority shareholders</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="2">(3,076</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,288</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">Shares repurchased</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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(987</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>Net
        cash used in financing activities</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%"><p align="right"><font
        size="2"><b>(6,262</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(7,824</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><i>Effect of change in consolidation area</i></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(38</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"><i>Effect
        of exchange differences</i></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="2">(67</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">71</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Net cash flow for the period</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"><p
        align="right"><font size="2"><b>(433</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>330</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Cash
        and cash equivalent at beginning of the year</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%"><p align="right"><font
        size="2"><b>1,436</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="2"><b>1,003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><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="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="2"><b>1,003</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="2"><b>1,333</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p align="left"><font size="3"><strong>SUPPLEMENTAL CASH FLOWS
INFORMATION</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Effect of investment of consolidated
        subsidiaries and businesses</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Non-current
        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%"><p align="right"><font
        size="2">122</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings</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="2">(19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Current
        and non-current 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="2">(22</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Net effect of investment</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="2"><b>81</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fair value
        of the participations held before the acquisition of
        control</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="2">(8</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><i>Purchase price</i></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="2"><b>73</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Cash
        flow on investment</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%"><p align="right"><font
        size="2"><b>73</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Effect of disposal of consolidated
        subsidiaries and businesses</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Current
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">261</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="2">204</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Non-current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">189</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Net
        borrowings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(138</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">42</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Current and non-current liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(217</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Exchange
        rate differences realized following disposal</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">45</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="80%" bgcolor="#EEEEEE"><font
        size="2">Net effect of disposal</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>286</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="2"><b>218</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Gain on
        disposal</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">140</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Minority interest</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="2">(43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><i>Selling
        price</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>590</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="2"><b>315</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2"><i>Cash
        and cash equivalent</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(63</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Cash flow on disposal</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>538</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="2"><b>252</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Transactions that did not produce cash flows</b></font></p>

<p><font size="2">In 2005 the Group contributed assets and
liabilities of a business with a carrying amount of euro 18
million in exchange for equity investment in the companies to
which those businesses were contributed.</font></p>

<p><font size="2">The Consolidated Financial Statements were
approved by Eni&#146;s Board of Directors on March 30, 2006.</font></p>

<p align="left"><strong>Basis of presentation</strong><br>
<font size="2"><br>
</font></p>

<p><font size="2">In application of EC Regulation 1606/2002
approved by the European Parliament and Council on July 19, 2002,
starting from 2005 companies with securities listed on a
regulated stock market of a Member State of the European Union
are required to prepare their Consolidated Financial Statements
in accordance with International Financial Reporting Standards
(IFRS), as approved by the European Commission.</font></p>

<p><font size="2">The Consolidated Financial Statements of Eni
have been prepared in accordance with IFRS issued by the
International Accounting Standards Board (IASB) and adopted by
the European Commission following the procedure contained in
article 6 of the EC Regulation No. 1606/2002 of the European
Parliament and Council of July 19, 2002. For hydrocarbon
exploration and production, accounting policies followed at an
international level have been applied, with particular reference
to amortization according to the Unit Of Production method,
buy-back contracts and Production Sharing Agreements.</font></p>

<p><font size="2">The IFRS under which Eni&#146;s Consolidated
Financial Statements have been prepared differ in certain limited
respects from the IFRS adopted by the IASB, the effect of such
differences on the Consolidated Financial Statements is not
material.</font></p>

<p><font size="2">The Consolidated Financial Statements have been
prepared by applying the cost method except for items that under
IFRS must be recognized at fair value as described in the
evaluation criteria.</font></p>

<p><font size="2">The Consolidated Financial Statements include
the statutory accounts of Eni SpA and of all Italian and foreign
companies in which Eni SpA holds the right to directly or
indirectly exercise control, determine financial and management
decisions, and obtain economic and financial benefits.</font></p>

<p><font size="2">Insignificant subsidiaries 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 economic and financial effects are not
included in the scope of consolidation. Such companies generally
represent subsidiaries that work on account of other companies as
the sole operator in the management of upstream oil contracts;
these companies are financed on a proportional basis according to
budgets approved, by the companies involved in the project, to
which the company periodically reports costs and receipts
deriving from the contract. Costs and revenues and other
operating data (production, reserves, etc.) of the project, as
well as the obligations arising from the project, are recognized
proportionally in the financial statements of the companies
involved. The effects of these exclusions are not material</font><a
href="#F(8)"><font size="2"><sup>8</sup></font></a><font size="2">.</font></p>

<p><font size="2">Subsidiaries excluded from consolidation, joint
ventures, affiliated companies and other interests are accounted
for as described below under the heading &quot;Financial fixed
assets&quot;.</font></p>

<p><font size="2">Financial statements of consolidated companies
are audited by auditing companies that examine and certify the
information required to be disclosed when preparing the
consolidated financial statement.</font></p>

<p><font size="2">Considering their materiality, amounts are
stated in millions of euro.</font></p>

<p><font size="3"><b>Principles of consolidation</b></font></p>

<p><font size="2"><b>Interests in companies included in the scope
of consolidation</b></font></p>

<p><font size="2">Assets and liabilities, expense and income
related to fully consolidated companies are wholly incorporated
into the Consolidated Financial Statements; the book value of
these interests is eliminated against the corresponding fraction
of the shareholders&#146; equity of the companies owned,
attributing to each item of the balance sheet the current value
at the date of acquisition of control. Any positive residual
difference as regard to the acquisition cost is recognized as
&quot;Goodwill&quot;. Negative residual differences are charged
against the profit and loss account.</font></p>

<p><font size="2">Gains or losses on the sale of shares in
consolidated subsidiaries are recorded in the profit and loss
account for the amount corresponding to the difference between
proceeds from the sale and the divested portion of net equity
sold.</font></p>

<p><font size="2">Fractions of shareholders&#146; equity and of
net profit of minority interest are recognized under specific
items in the profit and loss account. Minority interest is
determined based on the current value attributed to assets and
liabilities at the date of the acquisition of control, excluding
any related goodwill.</font></p>

<p><font size="2"><b>Inter-company transactions</b></font></p>

<p><font size="2">Income deriving from inter-company transactions
unrealized towards third parties is eliminated. Receivables,
payables, revenues and costs, guarantees, commitments and risks
among consolidated companies are eliminated, as well.
Inter-company losses are not eliminated, since they reflect an
actual decrease in the value of divested assets.</font></p>

<p><font size="2"><b>Foreign currency translation</b></font></p>

<p><font size="2">Financial statements of consolidated companies
denominated in currencies other than the euro are converted into
euro applying exchange rates prevailing at year end to assets and
liabilities, the historical exchange rates to equity accounts and
the average rates for the period to profit and loss account
(source: Ufficio Italiano Cambi).</font></p>

<p><font size="2">Exchange rate differences from the conversion
deriving from the application of different exchange rates for
assets and liabilities, shareholders&#146; equity and profit and
loss account are recognized under the item &quot;Other
reserves&quot; within shareholders&#146; equity for the portion
relating to the Group and under the item &quot;Minority
interest&quot; for the portion related to minority shareholders.</font></p>

<p><font size="2">Financial statements of foreign subsidiaries
which are translated into euro are denominated in the functional
currencies of the country where the enterprise operates.</font></p>

<p><font size="2"><b>Evaluation criteria</b></font></p>

<p><font size="2">The most significant evaluation criteria used
for the preparation of the Consolidated Financial Statements are
shown below.</font></p>

<p><font size="2"><b>Current assets</b></font></p>

<p><font size="2">Financial assets held for trading and financial
assets available for sale are stated at fair value and the
economic effects are charged to the profit and loss account item
&quot;Financial Income (Expense)&quot; and under
shareholders&#146; equity within &quot;Other reserves&quot;.</font></p>

<p><font size="2">The fair value of financial instruments is
represented by market quotations or, in their absence, by the
value resulting from the adoption of suitable financial valuation
models which take into account all the factors adopted by the
market operators and the prices obtained in similar actual
transactions in the market.</font></p>

<p><font size="2">When the conditions for the purchase or sale of
financial assets provide for the settlement of the transaction
and the delivery of the assets within a given number of days
determined by entities controlling the market or by agreements
(e.g. purchase of securities on regulated markets), the
transaction is entered at the date of settlement.</font></p>

<p><font size="2">Receivables are stated at their amortized cost
(see below &quot;Financial fixed assets&quot;).</font></p>

<p><font size="2">Transferred financial assets are eliminated
when the transaction, together with the cash flows deriving from
it, lead to the substantial transfer of all risks and benefits
associated to the property.</font></p>

<p><font size="2">Inventories, excluding contract work in
progress and including compulsory stocks, are stated at the lower
of purchase or production cost and market value represented by
the proceeds the company expects to collect from the sale of the
inventories in the normal course of business.</font></p>

<p><font size="2">The cost for inventories of hydrocarbons (crude
oil, condensates and natural gas) and petroleum products is
determined by applying the weighted-average cost method on a
three-month basis; the cost for inventories of the Petrochemical
segment is determined by applying the weighted-average cost on an
annual basis.</font></p>

<p><font size="2">Contract work in progress is recorded on the
basis of contractual considerations by reference to the stage of
completion of a contract measured on a cost-to-cost basis.
Advances are deducted from inventories within the limits of
contractual considerations; any excess of such advances over the
value of the work performed is recorded as a liability. Losses
related to construction contracts are accrued for as soon as the
company becomes aware of such losses. Contract work in progress
not yet invoiced, whose payment is agreed in a foreign currency,
is translated to euro using the current exchange rates at year
end and effects are reflected in the profit and loss account.</font></p>

<p><font size="2">Hedging instruments are described in the
section &quot;Derivative Instruments&quot;.</font></p>

<p><font size="2"><b>Non-current assets</b></font></p>

<p><font size="2"><b>Property, plant and equipment</b></font><a
href="#F(9)"><font size="2"><sup>9</sup></font></a></p>

<p><font size="2">Tangible assets, including investment
properties, are recognized using the cost model and stated at
their purchase or production cost including ancillary costs which
can be directly attributed to them as are required to make the
asset ready for use. In addition, when a substantial amount of
time is required to make the asset ready for use, the purchase
price or production cost includes the financial expenses incurred
that would have theoretically been saved had the investment not
been made.</font></p>

<p><font size="2">In the case of current obligations for the
dismantling and removal of assets and the reclamation of sites,
the carrying value includes, with a corresponding entry to a
specific provision, the estimated (discounted) costs to be borne
at the moment the asset is retired. Revisions of estimates for
these provisions, for the passage of time and for changes in the
discount rate are recognized under &quot;Provisions for
contingencies&quot;. The company recognizes material provisions
for the retirement of assets in the Exploration &amp; Production
business. No significant asset retirement obligations associated
with any legal obligations to retire refining, marketing and
transportation (downstream) and chemical long-lived assets
generally are recognized, as indeterminate settlement dates for
the asset retirements prevented estimation of the fair value of
the associated asset retirement obligation. The company performs
periodic reviews of its downstream and chemical long-lived assets
for any changes in facts and circumstances that might require
recognition of a retirement obligation.</font></p>

<p><font size="2">No revaluation is made even in application of
specific laws.</font></p>

<p><font size="2">Assets carried under financial leasing are
included within the tangible assets, with a corresponding entry
to the financial payable to the lessor, and depreciated using the
criteria detailed below. When the renewal is not reasonably
certain, assets carried under financial leasing are depreciated
over the period of the lease if shorter than the useful life of
the asset.</font></p>

<p><font size="2">Tangible assets are depreciated systematically
over the duration of their useful life taken as an estimate of
the period for which the assets will be used by the company. When
the tangible asset comprises more than one significant element
with different useful lives, the depreciation is carried out for
each component. The amount to be depreciated is represented by
the book value reduced by the presumable net realizable value at
the end of the useful life, if it is significant and can be
reasonably determined. Land is not depreciated, even if bought
together with a building. Tangible assets held for sales are not
depreciated but are valued at the lower of the book value and
fair value less costs of disposal.</font></p>

<p><font size="2">Assets that can be used free of charge are
depreciated over the shorter of the duration of the concession
and the useful life of the asset.</font></p>

<p><font size="2">Renewals, improvements and transformations
which extend asset lives are capitalized.</font></p>

<p><font size="2">The costs for the substitution of identifiable
components in complex assets are capitalized and depreciated over
their useful life; the residual book value of the component that
has been substituted is charged to the profit and loss account.
Ordinary maintenance and repair costs are expensed when incurred.</font></p>

<p><font size="2">When events occur that lead to a presumable
reduction in the book value of tangible assets, their
recoverability is checked by comparing their book value with the
realizable value, represented by the greater of fair value less
costs of disposal and replacement cost. In the absence of a
binding sales agreement, fair value is estimated on the basis of
market values, of recent transactions, or of the best available
information that shows the proceeds that the company could
reasonably expect to collect from the disposal of asset.
Replacement cost is determined by discounting the expected cash
flows deriving from the use of the asset and, if significant and
reasonably determinable, the cash flows deriving from its
disposal at the end of its useful life, net of disposal costs.
Cash flows are determined on the basis of reasonable and
documented assumptions that represent the best estimate of the
future economic conditions during the remaining useful life of
the asset, giving more importance to independent assumptions. The
discounting is carried out at a rate that takes into account the
implicit risk in the sectors where the entity operates. Valuation
is carried out for each single asset or, if the realizable value
of a single asset cannot be determined, for the smallest
identifiable group of assets that generates independent cash
inflows from their continuous use, the so called cash generating
unit. When the reasons for their impairment cease to exist, Eni
reverses previously recorded impairment charges and records as
income an asset revaluation in the profit and loss account for
the relevant year. This asset revaluation is the lower of the
fair value and the book value increased by the amount of
previously incurred impairments net of related amortization that
would have been made had the impairment not been made.</font></p>

<p><font size="2"><b>Intangible assets</b></font></p>

<p><font size="2">Intangible assets include assets which lack
physical qualities that are identifiable, controlled by the
company and able to produce future economic benefits, and
goodwill acquired in business combinations. An asset is
classified as intangible when the management is able to
distinguish its clearly from goodwill. This condition is normally
met when: (i) the intangible asset can be traced back to a legal
or contractual right, or (ii) the asset is separable, i.e. can be
sold, transferred, licensed, rented or exchanged, either
individually or as an integral part of other assets. An entity
controls an asset if it has the power to obtain the future
economic benefits flowing from the underlying resource and to
restrict the access of others to those benefits.</font></p>

<p><font size="2">Intangible assets are stated at cost as
determined with the criteria used for tangible assets. No
revaluation is made even in application of specific laws.</font></p>

<p><font size="2">Intangible assets with a defined useful life
are amortized systematically over the duration of their useful
life taken as an estimate of the period for which the assets will
be used by the company; the recoverability of their book value is
checked using the criteria described in the section
&quot;Tangible Assets&quot;.</font></p>

<p><font size="2">Goodwill and other intangible assets with an
indefinite useful life are not amortized. The recoverability of
their carrying value is checked at least annually and whenever
events or changes in circumstances indicate that the carrying
value may not be recoverable. With reference to goodwill, this
check is performed at the level of the smallest aggregate on
which the company, directly or indirectly, evaluates the return
on the capital expenditure that included said goodwill.
Impairment charges against goodwill may not be revalued.</font></p>

<p><font size="2">Costs of technological development activities
are capitalized when: (i) the cost attributable to the intangible
asset can be reasonably determined; (ii) there is the intention,
the availability of funding and the technical capacity to make
the asset available for use or sale; and (iii) it can be shown
that the asset is able to produce future economic benefits.</font></p>

<p><font size="2"><b>Exploration and production activities</b></font><a
href="#F(10)"><font size="2"><sup>10</sup></font></a></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 are capitalized in connection with the assets
acquired (exploratory potential, probable and possible reserves,
proved reserves). When the acquisition is related to a set of
exploratory potential and reserves, the cost is allocated to the
different assets acquired on the basis of the value of the
relevant discounted cash flow.</font></p>

<p><font size="2">Expenditure for the exploratory potential,
represented by the costs for the acquisition of the exploration
permits and for the extension of existing permits, is recognized
under &quot;Intangible assets&quot; and is amortized on a
straight-line basis over the period of the exploration as
contractually established. If the exploration is abandoned, the
residual expenditure is charged to the profit and loss account.</font></p>

<p><font size="2">Acquisition costs for proved reserves and for
possible and probable reserves are recognized under
&quot;Intangible assets&quot; or &quot;Tangible assets&quot;
depending on the nature of the underlying assets. Costs
associated with proved reserves are amortized on a Unit Of
Production (UOP) basis, as detailed in the section
&quot;Development&quot;, considering both developed and
undeveloped reserves. Expenditures associated with possible and
probable reserves are not amortized until classified as proved
reserves; in case of a negative result the costs are charged to
the profit and loss account.</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 both before and
after the acquisition of mineral rights (such as acquisition of
seismic data from third parties, test wells and geophysical
surveys) are capitalized, to reflect their nature of investment,
and amortized in full when incurred.</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 generally on a UOP basis, as their useful life is
closely related to the availability of feasible reserves. This
method provides for residual costs to be amortized through a rate
representing the ratio between the volumes extracted during the
period and the proved developed reserves existing at the end of
the period, increased by the volumes extracted during the period.
This method is applied with reference to the smallest aggregate
representing a direct correlation between investment and proved
developed reserves.</font></p>

<p><font size="2">Costs related to unsuccessful development wells
or damaged wells are expensed immediately as loss on disposal.</font></p>

<p><font size="2">Impairments and reversal of impairments of
development costs are made on the same basis as those for
tangible 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>Production sharing agreements and buy-back
contracts</i></font></p>

<p><font size="2">Revenues and provisions related to Production
Sharing Agreements and buy-back contracts are settled on the
basis of contractual clauses related to the repayment of costs
incurred following the exploration, development and operating
activities (cost oil) and to the relevant amount of realized
productions (profit oil).</font></p>

<p><font size="2"><i>Retirement</i></font></p>

<p><font size="2">Costs expected to be incurred with respect to
the retirement of the well, including costs associated with
removal of production facilities, dismantlement and site
restoration, are capitalized and amortized on a UOP basis,
consistent with the policy described under Tangible assets.</font></p>

<p><font size="2"><b>Grants</b></font></p>

<p><font size="2">Grants are recorded in a contra asset account
when authorized, if all the required conditions have been met and
as a reduction of purchase price or production cost of the
relevant assets. Grants of the year are recognized in the profit
and loss account.</font></p>

<p><font size="2"><b>Financial fixed assets</b></font></p>

<p><font size="2"><i>Investments</i></font></p>

<p><font size="2">Investments in subsidiaries excluded from
consolidation, joint ventures and affiliates are accounted for
using the equity method. If it does not result in a
misrepresentation of the company&#146;s financial condition and
consolidated results, subsidiaries, joint ventures and affiliates
excluded from consolidation may be accounted for at cost,
adjusted for permanent impairment of value. When the reasons for
their impairment cease to exist, investments accounted for at
cost are revalued within the limit of the impairment made and
their effects are charged to the profit and loss account item
&quot;Other income (expense) from investments&quot;.</font></p>

<p><font size="2">Other investments are recognized at their fair
value and their effects are included in shareholders&#146; equity
under &quot;Other reserves&quot;. When fair value cannot be
reasonably ascertained, investments are accounted for at cost,
adjusted for permanent impairment of value; impairment of value
may not be revalued.</font></p>

<p><font size="2">The risk deriving from losses exceeding
shareholders&#146; equity is recognized in a specific provision
to the extent the parent company is required to fulfill legal or
implicit obligations towards the subsidiary or to cover its
losses.</font></p>

<p><font size="2"><i>Receivables and financial assets to be held
to maturity</i></font></p>

<p><font size="2">Receivables and financial assets that must be
held to maturity are stated at cost represented by the fair value
of the initial exchanged amount adjusted to take into account
direct external costs related to the transaction (e.g. fees of
agents or consultants, etc.). The initial carrying value is then
corrected to take into account capital repayments, devaluations
and amortization of the difference between the reimbursement
value and the initial carrying value; amortization is carried out
on the basis of the effective internal rate of return represented
by the rate that equalizes, at the moment of the initial
revaluation, the current value of expected cash flows to the
initial carrying value (so-called amortized cost method). The
economic effects of the valuation according to the amortized cost
method are charged as &quot;Financial income (expense)&quot;.</font></p>

<p><font size="2"><b>Financial liabilities</b></font></p>

<p><font size="2">Debt is carried at amortized cost (see item
&quot;Financial fixed assets&quot; above).</font></p>

<p><font size="2"><b>Provisions for contingencies</b></font></p>

<p><font size="2">Provisions for contingencies concern risks and
charges of a definite nature and whose existence is certain or
probable but for which at year end the amount or date of
occurrence remains uncertain. Provisions are made when: (i) there
is a current obligation, either legal or implicit, deriving from
a past event; (ii) it is probable that the fulfillment of that
obligation will result in an outflow of resources embodying
economic benefits; and (iii) the amount of the obligation can be
reliably estimated. Provisions are stated at the value that
represents the best estimate of the amount that the company would
reasonably pay to fulfill the obligation or to transfer it to
third parties at year end. When the financial effect of time is
significant and the payment date of the obligations can be
reasonably estimated, the provisions are discounted back at the
company&#146;s average rate of indebtedness. The increase in the
provision due to the passing of time is charged to the profit and
loss account in the item &quot;Financial Income (Expense)&quot;.</font></p>

<p><font size="2">When the liability regards a tangible asset
(e.g. site restoration and abandonment), the provision is stated
with a corresponding entry to the asset to which it refers;
profit and loss account charge is made with the amortization
process.</font></p>

<p><font size="2">The costs that the company expects to bear to
carry out restructuring plans are recognized in the year in which
the company formally defines the plan and the interested parties
have developed the reasonable expectation that the restructuring
will happen.</font></p>

<p><font size="2">The provisions are periodically updated to show
the variations of estimates of costs, production times and
actuarial rates; the estimated revisions to the provisions are
recognized in the same profit and loss account item that had
previously held the provision, or, when the liability regards
tangible assets (i.e. site restoration and abandonment) with a
corresponding entry to the assets to which they refer.</font></p>

<p><font size="2">In the Notes to the Financial Statements the
following potential liabilities are described: (i) possible, but
not probable obligations deriving from past events, whose
existence will be confirmed only when one or more future events
beyond the company&#146;s control occur; and (ii) current
obligations deriving from past events whose amount cannot be
reasonably estimated or whose fulfillment will probably be not
expensive.</font></p>

<p><font size="2"><b>Employee post-employment benefits</b></font></p>

<p><font size="2">Post employment benefit plans are defined on
the basis of plans, even if not formalized ones, that due to
their mechanisms feature defined contributions plans or defined
benefit plans. In the first case, the company&#146;s obligation,
consisting in making payments to the State or to a trust or a
fund, is determined on the basis of contributions due.</font></p>

<p><font size="2">The liabilities related to defined benefit
plans</font><a href="#F(11)"><font size="2"><sup>11</sup></font></a><font
size="2">, net of any plan assets, are determined on the basis of
actuarial assumptions</font><a href="#F(12)"><font size="2"><sup>12</sup></font></a><font
size="2"> and charged to the relevant year consistently with the
employment period required to obtain the benefits; the evaluation
of liabilities is made by independent actuaries.</font></p>

<p><font size="2">The actuarial gains and losses of defined
benefit plans, deriving from a change in the actuarial
assumptions used or from a change in the conditions of the plan,
are charged to the profit and loss account, proportionally
through the residual average working life of the employees
participating to the plan, in the limits of the share of the
discounted profit/loss not charged beforehand, that exceeds the
greater of 10% of liabilities and 10% of the fair value of the
plan assets (corridor method).</font></p>

<p><font size="2"><b>Treasury shares</b></font></p>

<p><font size="2">Treasury shares are recorded at cost and as a
reduction of shareholders&#146; equity. Gains following
subsequent sales are recorded as an increase in
shareholders&#146; equity.</font></p>

<p><font size="2"><b>Revenues and costs</b></font></p>

<p><font size="2">Revenues from sales of products and services
rendered are recognized upon transfer of risks and advantages
associated with the property or upon settlement of the
transaction. In particular, revenues are recognized:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">for crude
        oil, generally upon shipment;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">for natural
        gas, when the natural gas is delivered to the customer;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">for petroleum
        products sold to retail distribution networks, generally
        upon delivery to the service stations, whereas all other
        sales are generally recognized upon shipment;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">for
        petrochemical products and other products, generally upon
        shipment.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">Revenues are recognized upon shipment when, at
that date, the risks of loss are transferred to the acquirer.</font></p>

<p><font size="2">Revenues from the sale of crude oil and natural
gas produced in properties in which Eni has an interest together
with other producers are recognized on the basis of Eni&#146;s
working interest in those properties (entitlement method).
Differences between Eni&#146;s net working interest volume and
actual production volumes are recognized at current prices at
period end.</font></p>

<p><font size="2">Income related to partially rendered services
are recognized with respect to the accrued revenues, if it is
possible to reasonably determine the state of completion and
there are no relevant uncertainties concerning the amounts and
the existence of the revenue and related costs; otherwise it is
recognized within the limits of the recoverable costs incurred.</font></p>

<p><font size="2">The revenues accrued in the period related to
construction contracts are recognized on the basis of contractual
revenues by reference to the stage of completion of a contract
measured on the cost-to-cost basis. The requests of additional
revenues, deriving from a change in the scope of the work, are
included in the total amount of revenues when it is probable that
the customer will approve the variation and the relevant amount;
claims deriving for instance from additional costs incurred for
reasons attributable to the client are included in the total
amount of revenues when it is probable that the counterpart will
accept them.</font></p>

<p><font size="2">Revenues are stated net of returns, discounts,
rebates and bonuses, as well as directly related taxation.
Exchanges of goods and services with similar nature and value do
not give rise to revenues and costs as they do not represent sale
transactions.</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">Costs related to the amount of emissions,
determined on the basis of the average prices of the main
European markets at the end of the period, are reported in
relation to the amount of the carbon dioxide emissions that
exceed the amount assigned; revenues are related to the amount of
emissions are reported when are recognized following the sale.</font></p>

<p><font size="2">Operating lease payments are recognized in the
profit and loss account over the length of the contract.</font></p>

<p><font size="2">Labor costs include stock grants and stock
options granted to managers, consistent with their actual
remunerative nature. The cost is determined based on the fair
value of the rights awarded to the employee; the portion relevant
to the year is calculated pro rata over the period to which the
incentive refers (vesting period</font><a href="#F(13)"><font
size="2"><sup>13</sup></font></a><font size="2">). The fair value
of stock grants is represented by the current value of the shares
at the date of the award, reduced by the current value of the
expected dividends in the vesting period. The fair value of stock
options is the value of the option calculated with the
Black-Scholes method that takes into account the exercise
conditions, current price of the shares, expected volatility and
the risk-free interest rate. The fair value of the stock grants
and stock options is shown as a contra-entry to &quot;Other
reserves&quot;.</font></p>

<p><font size="2">The costs for the acquisition of new knowledge
or discoveries, the study of products or alternative processes,
new techniques or models, the planning and construction of
prototypes or, in any case, costs borne for other scientific
research activities or technological development, are generally
considered current costs and expensed as incurred.</font></p>

<p><font size="2"><b>Accounting to Buy/Sell contracts</b></font></p>

<p><font size="2">In January and February 2005, the Securities
and Exchange Commission (&quot;SEC&quot;) 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 into 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 of
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 Inventory with the Same
Counterparty.&quot; At its September 2005 meeting, the EITF
reached consensus that two or more legally separate exchange
transactions with the same counterparty, including buy/sell
transactions, should be combined and considered as a single
arrangement when the transactions were entered into &quot;in
contemplation&quot; of one another. EITF 04-13 was ratified by
the FASB in September 2005 and is effective for new arrangements,
or modifications or renewals of existing arrangements, entered
into beginning on or after April 1, 2006, which will be the
effective date for the company&#146;s adoption of this standard.
Upon adoption, the company will report the net effect of buy/sell
transactions on its Consolidated Statement of Income as
&quot;Purchased crude oil and products&quot; instead of reporting
the revenues associated with these arrangements as &quot;Sales
and other operating revenues&quot; and the costs as
&quot;Purchased crude oil and products.&quot; While this issue
was under deliberation, the SEC staff directed Eni and other oil
companies 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 December 31, 2004 and 2005 were
netted of euro 1,821 million and euro 2,595 million,
respectively, for the above described buy/sell contracts.</font></p>

<p><font size="2"><b>Exchange rate differences</b></font></p>

<p><font size="2">Revenues and costs concerning transactions in
currencies other than functional currency are stated at the
exchange rate on the date that the transaction is completed.</font></p>

<p><font size="2">Monetary assets and liabilities in currencies
other than functional currency are converted by applying the year
end exchange rate and the effect is stated in the profit and loss
account. Non-monetary assets and liabilities in currencies other
than functional currency valued at cost are stated at the initial
exchange rate; when they are evaluated at recoverable value or
realizable value, the exchange rate applied is that of the day of
recognition.</font></p>

<p><font size="2"><b>Dividends</b></font></p>

<p><font size="2">Dividends are recognized at the date of the
general shareholders&#146; meeting in which they were declared,
except when the sale of shares before the ex-dividend date is
certain.</font></p>

<p><font size="2"><b>Income taxes</b></font></p>

<p><font size="2">Current income taxes are determined on the
basis of estimated taxable income; the estimated liability is
recognized in the item &quot;Income tax liabilities&quot;.
Current tax assets and liabilities are measured at the amount
expected to be paid to (recovered from) the tax authorities,
using the tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.</font></p>

<p><font size="2">Deferred tax assets or liabilities are provided
on temporary differences arising between the carrying amounts of
the assets and liabilities in the financial statements and their
tax bases. Deferred tax assets are recognized when their
realization is considered probable.</font></p>

<p><font size="2">Deferred tax assets and liabilities are
recorded under non-current assets and liabilities and are offset
at single entity level if related to offsettable taxes. The
balance of the offset, if positive, is recognized in the item
&quot;Deferred tax assets&quot; and if negative in the item
&quot;Deferred tax liabilities&quot;. When the results of
transactions are recognized directly in the shareholders&#146;
equity, current taxes, deferred tax assets and liabilities are
also charged to the shareholders&#146; equity.</font></p>

<p><font size="2"><b>Derivatives</b></font></p>

<p><font size="2">Derivatives, including embedded derivatives
which are separated from the host contract, are assets and
liabilities recognized at their fair value.</font></p>

<p><font size="2">Derivatives are classified as hedging
instruments when the relationship between the derivative and the
subject of the hedge is formally documented and the effectiveness
of the hedge is high and is checked periodically. When hedging
instruments cover the risk of variation of the fair value of the
hedged item (fair value hedge; e.g. hedging of the variability on
the fair value of fixed interest rate assets/liabilities), the
derivatives are stated at fair value and the effects charged to
the profit and loss account; consistently the hedged items are
adjusted to reflect the variability of fair value associated with
the hedged risk. When derivatives hedge the cash flow variation
risk of the hedged item (cash flow hedge; e.g. hedging the
variability on the cash flows of assets/liabilities as a result
of the fluctuations of exchange rate), changes in the fair value
of the derivatives are initially stated in net equity and then
recognized in the profit and loss account consistent with the
economic effects produced by the hedged transaction. The change
in the fair value of derivatives that do not meet the conditions
required to qualify as hedging instruments are shown in the
profit and loss account.</font></p>

<p><font size="2"><b>Use of accounting estimates</b></font></p>

<p><font size="2">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. Key areas where estimates are applied include the
determination of oil and gas proved reserves and proved developed
reserves, accounting for exploratory drilling costs under U.S.
GAAP, impairment of fixed assets, intangible assets and goodwill,
asset retirement obligations, business combinations, recognition
of environmental liabilities and recognition of revenues in the
oilfield services construction and engineering businesses. 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 future results.</font></p>

<p><font size="2"><b>Oil and gas activities</b></font></p>

<p><font size="2">Engineering estimates of the Company&#146;s oil
and gas reserves are inherently uncertain. 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. Although 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;, the accuracy of any reserve
estimate is a function of the quality of available data and
engineering and geological interpretation and judgment.</font></p>

<p><font size="2">Reserves in a field will only be categorized as
proved when all the criteria for attribution of proved status
have been met, including an internally imposed requirement for
project sanction that occurs when a final investment decision is
made. At the point of sanction, all booked reserves will be
categorized as proved undeveloped. Volumes will subsequently be
recategorized from proved undeveloped to proved developed as a
consequence of development activity. The first proved developed
bookings will occur at the point of first oil or gas production.
Major development projects typically take one to four years from
the time of initial booking to the start of production.
Adjustments may be made to booked reserves due to production,
reservoir performance, commercial factors, acquisition and
divestment activity and additional reservoir development
activity.</font></p>

<p><font size="2">Eni reassesses its estimate of proved reserves
on an annual basis. The estimated proved reserves of oil and
natural gas may be subject to future revision and upward and
downward revision may be made to the initial booking of reserves
due to production, reservoir performance, commercial factors,
acquisition and divestment activity and additional reservoir
development activity. In particular, changes in oil and natural
gas prices could impact the amount of Eni&#146;s proved reserves
as regards the initial estimate and, in the case of Production
Sharing Agreements and buy-back contracts, the share of
production and reserves Eni is entitled to. Accordingly, the
estimated reserves could be materially different from the
quantities of oil and natural gas that ultimately will be
recovered.</font></p>

<p><font size="2">Oil and natural gas reserves have a direct
impact on certain amounts reported in the financial statements.
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. 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. Also,
estimated proved reserves are used to calculate future cash flows
from oil and gas 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. See &quot;Item 3 &#150; Risk
Factors &#150; Uncertainties in Estimates of Oil and Natural Gas
Reserves&quot;.</font></p>

<p><font size="2"><b>Accounting for Suspended Well Costs under
U.S. GAAP</b></font></p>

<p><font size="2">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 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) 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.
Determination of whether an exploratory well should remain
capitalized after completion of drilling requires a high degree
of judgment 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. The
company evaluates the progress made on the basis of regular
project reviews which take account of the following factors: (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. As of December 31, 2005, an amount
of euro 403 million remain capitalized relating to approximately
30 exploratory wells for which drilling activities have been
completed for more than one year, of this capitalized amount euro
59 million (or 8 wells) relates to projects progressing towards
completion of development activities, and the remaining euro 344
million (or 22 wells) relates to projects for which additional
exploratory activity is underway or firmly planned. See Note 35
to the Consolidated Financial Statements.</font></p>

<p><font size="2"><b>Impairment of Assets</b></font></p>

<p><font size="2">Eni assesses its fixed assets and intangible
assets, including goodwill, for possible impairment if there are
events or changes in circumstances that indicate the carrying
values of the assets are not recoverable. Such indicators include
changes in the Group&#146;s business plans, changes in commodity
prices leading to unprofitable performance and, for oil and gas
properties, significant downward revisions of estimated proved
reserve quantities. Determination as to whether and how much an
asset is impaired involves management estimates on highly
uncertain matters such as future commodity prices, the effects of
inflation and technology improvements on operating expenses,
production profiles and the outlook for global or regional market
supply-and-demand conditions for crude oil, natural gas,
commodity chemicals and refined products.</font></p>

<p><font size="2">Technically, the amount of an impairment charge
is determined by comparing the book value of an asset with its
recoverable amount. The recoverable amount is the greater of fair
value net of disposal costs and value in use. The estimated value
in use is usually 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 and are discounted by using a
rate related to the activity involved.</font></p>

<p><font size="2">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,
production taxes and the costs to be incurred for the reserves
yet to be developed. The estimated future level of production is
based on assumptions about future commodity prices, lifting and
development costs, field decline rates, market demand and supply,
economic regulatory climates and other factors.</font></p>

<p><font size="2">Under both IFRS and U.S. GAAP, goodwill is not
amortized but, like indefinitive lived intangible assets, is
tested for impairment at least annually. Under IFRS the
assessment of goodwill impairment is based on the determination
of the fair value of each cash generating units to which goodwill
can be attributed on a reasonable and consistent basis. A cash
generating unit is a group of assets that generates cash inflows
that are largely independent of the cash inflows from other
groups of assets. If the fair value of a cash generating unit is
lower than the carrying amount, goodwill attributed to that cash
generating unit is impaired up to that difference, if the
carrying amount of goodwill is less than the amount of impairment
assets of the generating unit are impaired on a pro-rata basis
for the residual difference.</font></p>

<p><font size="2"><b>Asset Retirement Obligation</b></font></p>

<p><font size="2">Obligations related to the removal of tangible
equipment and to the restoration of land or seabeds require
significant estimates in calculating the amount of the obligation
and determining the amount required to be recorded in the
Consolidated Financial Statements. Estimating the future asset
removal costs is difficult and requires management to make
estimates and judgments because most of the removal obligations
are many years into the future and contracts and regulations are
often unclear as to what constitutes removal. Asset removal
technologies and costs are constantly changing, as well as
political, environmental, safety and public relations
considerations. The subjectivity of these estimates is also
increased by the accounting method used that 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
liabilities are initially recorded, the related fixed assets are
increased by an equal corresponding amount. The liabilities are
increased with the passage of time (interest accretion) and any
change of the estimates following the modification of the future
cash flows and the discount rate adopted. The recognized asset
retirement obligations 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"><b>Business Combinations</b></font></p>

<p><font size="2">Accounting for the acquisition of a business
requires the allocation of the purchase price to the various
assets and liabilities of the acquired business at fair value.
Any positive residual difference is recognized as
&quot;Goodwill&quot;. Negative residual differences are charged
against profit and loss account. Management uses all available
information to make these fair value determinations and, for
major business acquisitions, typically engages an outside
appraisal firm to assist in the fair value determination of the
acquired long-lived assets.</font></p>

<p><font size="2"><b>Environmental Liabilities</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, productions and other activities,
including legislation that implements international conventions
or protocols. Environmental costs are recognized when it becomes
probable that a liability has been incurred and the amount can be
reasonably estimated.</font></p>

<p><font size="2">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 on Eni&#146;s consolidated results of
operations and financial position as a result of such laws and
regulations, there can be no assurance that there will not be a
material adverse impact on Eni&#146;s consolidated results of
operations and financial position 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 and those that may derive from the
legislative decree that the Italian Government will have to enact
in order to implement Directive 2000/60/EC 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.</font></p>

<p><font size="2"><b>Employees and post-retirement benefits</b></font></p>

<p><font size="2">Employees benefits (such as pension payments,
life insurance payments, medical assistance after retirement,
etc.) are evaluated with reference to uncertain events and based
upon actuarial assumptions including among others discount rates,
expected rates of return on any plan assets, expected rates of
salary increases, medical cost trend rates, estimated retirement
dates, mortality rates. These assumptions are reviewed annually
and may change from year to year impacting future results of
operations. </font></p>

<p><font size="2">The significant assumptions used to account for
pensions and other post-retirement benefits are determined as
follows:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">discount and
        inflation rates reflect the rates at which the benefits
        could be effectively settled, taking into account the
        duration of the obligation. Indications used in selecting
        the discount rate include rates of annuity contracts and
        rates of return on high-quality fixed-income investments
        (such as government bonds). The inflation rates reflect
        market conditions observed country by country;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">salary
        increase assumptions (when relevant) are determined by
        each entity. They reflect an estimate of the actual
        future salary levels of the individual employees
        involved, including future changes attributed to general
        price levels (consistent with inflation rate
        assumptions), productivity, seniority, promotion and
        other factors;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">healthcare
        cost trend assumptions (when relevant) reflect an
        estimate of the actual future changes in the cost of the
        healthcare related benefits provided to the plan
        participants and are based on past and current healthcare
        cost trends including healthcare inflation, changes in
        healthcare utilization, and changes in health status of
        the participants;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">demographic
        assumptions such as mortality, disability and turnover
        reflect the best estimate of these future events for the
        individual employees involved, based principally on
        available actuarial data; and</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">determination
        of expected rates of return on assets is made through
        compound averaging. For each plan, there are taken into
        account the distribution of investments among bonds,
        equities and cash and the expected rates of return on
        bonds, equities and cash. A weighted-average rate is then
        calculated.</font></td>
    </tr>
</table>

<p><font size="2">Differences between projected and actual costs
and between the projected return and the actual return on plan
assets routinely occur and are called actuarial gains and losses.
</font></p>

<p><font size="2">The unrecognized actuarial losses of pension
benefits as at December 31, 2005 were euro 144 million compared
to euro 41 million in 2004. The euro 103 million increase from
2004 reflected primarily changes in assumptions used to account
for pensions and other post-retirement benefits mainly related to
the decrease in discount rates (4.0% in 2005 compared whit 4.5%
in 2004). Pension accounting principles require that such
actuarial losses be deferred and amortized over future periods.
Eni applies the corridor method to amortize its actuarial losses
and gains. This method amortizes the net cumulative actuarial
gains and losses that exceed 10% of the greater of (i) the
present value of the defined benefit obligation and (ii) the fair
value of plan assets, over the average expected remaining working
lives of the employees participating in the plan.</font></p>

<p><font size="2">In 2005, Eni recognized a charge of euro 126
million (euro 118 million in 2004) in the profit and loss account
in connection with its obligations for employee post-retirement
benefits.</font></p>

<p><font size="2">See Note 20 of the Consolidated Financial
Statements for further information about employees
post-retirement benefits.</font></p>

<p><font size="2"><b>Contingencies</b></font></p>

<p><font size="2">In addition to accruing the estimated costs for
asset retirement obligation and environmental liabilities, Eni
accrues for all contingencies that are both probable and
estimable. These other contingencies are primarily related to
employee benefits, litigation and tax issues. Determining
appropriate amounts for accrual is a complex estimation process
that includes subjective judgments.</font></p>

<p><font size="2"><b>Revenue recognition in the Oilfield
Services, Construction and Engineering segment</b></font></p>

<p><font size="2">Revenue recognition in the Oilfield Services,
Construction and Engineering business segment is based on the
stage of completion of a contract as measured on the cost-to-cost
basis applied to contractual revenues. Use of the stage of
completion method requires estimates of future gross profit on a
contract by contract basis. The future gross profit represents
the profit remaining after deducing costs attributable to the
contract from revenues provided for in the contract. The estimate
of future gross profit is based on a complex estimation process,
that includes identification of risks related to the geographical
region, market condition in that region and any assessment that
it is necessary to estimate with sufficient precision the total
future costs as well as the expected timetable. Variation in the
scope of the work, are included in the total amount of revenues
when it is probable that the customer will approve the variation
and claims deriving for additional costs are included in the
total amount of revenues when it is probable that they will
result in additional revenue.</font></p>

<p><font size="2"><b>Recent accounting principles</b></font></p>

<p><font size="2">With the regulations No. 1910/2005, 2106/2005
and 108/2006 issued between November 2005 and January 2006 the
European Commission approved some modifications and integrations
to the international accounting standards.</font></p>

<p><font size="2">In particular the main
modifications/integrations concern the following standards:</font></p>

<p><font size="2"><i>IAS 19 &quot;Employee benefits&quot;</i></font></p>

<p><font size="2">Amendments to IAS 19 essentially concern the
approval of the option related to the recognition in the period
when they incur of the total amount of actuarial gains and losses
with a corresponding entry to a specific reserve in
shareholders&#146; equity.</font></p>

<p><font size="2"><i>IAS 39 &quot;Financial instruments:
recognition and measurement&quot;</i></font></p>

<p><font size="2">In relation to cash flow hedge operations on
exchange rate risk, IAS 39 has been integrated with the aim of
qualifying as hedging instruments the intercompany transactions
expected and with an high probability, on condition that: (i)
these transactions are denominated in a functional currency other
than the currency of the entity that carries out the operation;
and (ii) the exposure to the exchange rate risk determines some
effects in consolidated profit and loss account.</font></p>

<p><font size="2">Amendments to IAS 39 also concerned the
recognition and measurement of financial guarantees. In
particular, financial guarantees are recorded when they are
issued, as liability valued at the market value and, then, in
relation to the execution risk, at the greater between: (i) the
best estimate of the charge to be sustained to fulfill the
obligation; and (ii) the initial amount reduced of premiums
collected.</font></p>

<p><font size="2"><i>IFRS 7 &quot;Financial instruments:
disclosures&quot; and IAS 1, presentation of financial statements</i></font></p>

<p><font size="2">IFRS 7 establishes the disclosures to be given
about financial instruments and the about the exposure and
management of financial risks. The requirements of IFRS 7 include
some disclosures currently contained in IAS 32 &quot;Financial
instruments: exposures and additional disclosures&quot;.</font></p>

<p><font size="2">Also by the amendment of IAS 1, it is requested
to give disclosure of objectives, policies and processes for
managing capital.</font></p>

<p><font size="2"><i>IFRIC 4 &quot;Determining whether an
arrangement contains a lease&quot;</i></font></p>

<p><font size="2">Requirements of IFRIC 4 provide guidance for
determining whether arrangements that do not take the legal form
of a lease but which convey rights to use assets in return for a
payment or series of payments should be treated as a lease for
accounting purposes.</font></p>

<p><font size="2">In particular, for determining whether an
arrangement is, or contains a lease, an entity should consider
the purposes of the operation and verify if the arrangement: (i)
provides, explicitly or implicitly, the use of an asset (or a
group of assets) and the fulfillment of the arrangement depends
upon such specific assets; or (ii) transfers the right to use
such assets.</font></p>

<p><font size="2"><i>IFRIC 5 &quot;Rights to interests arising
from decommissioning, restoration and environmental funds&quot;</i></font></p>

<p><font size="2">Requirements of IFRIC 5 provide guidance for
determining the recognition and measurement for the contribution
to decommissioning, restoration and environmental rehabilitation
funds that have the following features: (i) the assets are held
or administered by a separate legal entity; and (ii)
contributor&#146;s right to access the assets of the fund is
restricted.</font></p>

<p><font size="2">The contributor recognises its obligation to
pay decommissioning costs as a liability and its interest in the
fund separately. In the case that the interest means having
control, having joint control or significant influence over the
fund, the entity contributor must recognize the interest in the
fund as an investment in a subsidiary, associate, or a jointly
controlled.</font></p>

<p><font size="2">Modifications and integrations to international
accounting principles will be effective starting from January 1,
2006 and from January 31, 2007 for IFRS 7.</font></p>

<p><font size="2">Eni presently is analyzing the statements and,
at the moment, cannot determine if their adoption will have a
significant effect on Eni&#146;s consolidated financial position
or operating results.</font></p>

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

<h5 align="right"><a href="#toc" name="Notes to CFS"><strong>Table
of Contents</strong></a></h5>

<p align="left"><font size="4"><strong>Notes to the Consolidated
Financial Statements</strong></font><br>
<br>
<font size="3"><strong>Current activities</strong></font></p>

<p align="left"><b>1 Cash and cash equivalent</b></p>

<p><font size="2">Cash and cash equivalent of euro 1,333 million
(euro 1,003 million at December 31, 2004) include financing
receivables due within 90 days for euro 122 million (euro 167
million at December 31, 2004) and include deposits with financial
institutions with a notice greater than 48 hours and securities
available for sale with a maturity date within 90 days.<br>
</font></p>

<p><b>2 Other financial assets for trading or available for sale</b></p>

<p><font size="2">Other financial assets for trading or available
for sale of euro 1,368 million (euro 1,266 million at December
31, 2004) consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Listed
        Italian treasury bonds</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">1,088</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Listed securities issued by Italian and foreign
        merchant banks</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">243</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Not quoted
        securities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">31</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="2">37</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="2"><b>1,266</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="2"><b>1,368</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p><font size="2">Securities of euro 1,368 million (euro 1,266
million at December 31, 2004) are available for sale. At December
31, 2004 and December 31, 2005 Eni did not own financial assets
held for trading.</font></p>

<p><font size="2">Valuation at fair value determined an increase
for securities of euro 8 million recorded with a corresponding
entry to the shareholders&#146; equity (euro 6 million) and
deferred tax liabilities (euro 2 million). At January 1, 2005 the
first application of IAS 32 and 39 determined an increase of euro
19 million with a corresponding entry to the shareholders&#146;
equity (euro 13 million) and to deferred tax liabilities (euro 6
million).</font></p>

<p><font size="2">Securities for euro 465 million (euro 474
million at December 31, 2004) are made for operating purposes and
concern coverage securities of technical reserves of Padana
Assicurazioni SpA for euro 453 million (euro 474 million at
December 31, 2004).<br>
</font></p>

<p><b>3 Trade and other receivables</b></p>

<p><font size="2">Trade and other receivables of euro 17,902
million (euro 13,734 million at December 31, 2004) consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Trade
        receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">10,525</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="2">14,101</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Financing receivables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">521</font></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="2">492</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,688</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="2">3,309</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="2"><b>13,734</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="2"><b>17,902</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">Receivables are recorded net of
the allowance for doubtful accounts of euro 891 million (euro 755
million at December 31, 2004):</font></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"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Trade receivables</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="2">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="2">119</font></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="2">(22</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(24</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">643</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Other
        receivables</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="2">185</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="2">123</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="2">(10</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(50</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">248</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" 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="2"><b>755</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="2"><b>242</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="2"><b>(32</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(74</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>891</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Trade receivables of euro 14,101 increased by
euro 3,576 million in 2005 as compared to 2004. This increase
relates primarily to the Gas &amp; Power segment (euro 1,671
million), Refining &amp; Marketing (euro 1,010 million) and
Exploration &amp; Production (euro 806 million) and concern
exchange rate differences due to the translation of financial
statements prepared in currencies other than euro for euro 216
million. Trade receivables concern advances paid as a guarantee
of contract work in progress for euro 101 million (euro 95
million at December 31, 2004).</font></p>

<p><font size="2">Financing receivables of euro 492 million (euro
521 million) concern receivables made for operating purposes for
euro 480 million (euro 510 million at December 31, 2004) and
concessions, primarily, to consolidated subsidiaries, joint
ventures and affiliates.</font></p>

<p><font size="2">&quot;Other&quot; receivables of euro 3,309
million (euro 2,688 million at December 31, 2004) consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Accounts receivable from:</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="2">- joint
        venture operators in exploration and production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">784</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="2">1,123</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- insurance companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">322</font></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="2">539</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Italian
        governmental entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">216</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="2">228</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="2"><b>1,322</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="2"><b>1,890</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Receivables
        relating to factoring activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">347</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="2">324</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Prepayments for services</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">259</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">815</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="2">836</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="2"><b>2,688</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="2"><b>3,309</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Receivables relating to factoring activities
for euro 324 million (euro 347 million at December 31, 2004)
relate to Serfactoring SpA and concern essentially advances for
factoring activities with recourse and receivables for factoring
activities without recourse.</font></p>

<p><font size="2">Receivables with related parties are described
in Note 32.<br>
</font></p>

<p><b>4 Inventories</b></p>

<p><font size="2">Inventories of euro 3,563 million (euro 2,847
million at December 31, 2004) consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="34%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="34%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="34%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="34%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%"><p align="left"><font
        size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Crude oil, gas and petroleum products</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Chemical products</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Work in progress long-term contracts</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Other</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Crude oil, gas and petroleum products</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Chemical products</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Work in progress long-term contracts</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Other</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%"><font size="2">Raw and
        auxiliary materials and consumables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">303</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">199</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">394</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">896</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">210</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">217</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">645</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">1,072</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">Products being processed and semi finished
        products</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">59</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">78</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Work in
        progress long-term contracts</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">399</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">399</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">418</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">418</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">Finished products and goods</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">891</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">482</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,410</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">572</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" 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="5%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,814</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Advances</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">181</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="5%"><p align="right"><font
        size="2">181</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,231</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>700</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>483</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>433</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,847</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,491</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>807</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>599</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>666</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="5%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,563</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Inventories were net of the valuation allowance
of euro 93 million (euro 129 million at December 31, 2004):</font></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"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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">&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="2"><b>129</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="2">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="2">(82</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>93</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Work in progress long-term contracts of euro
418 million (euro 399 million at December 31, 2004) are net of
the payments received in advance of euro 5,180 million (euro
5,156 million at December 31, 2004).</font></p>

<p><font size="2">At January 1, 2005, the date of the first
application of IAS 32 and 39, inventories for work in progress
long-term contracts were restated by excluding from the valuation
the effects related to derivatives that do not meet the
conditions required to qualify as hedging instruments. The
exclusion of the effects related to derivatives resulted in a
decrease for work in progress long-term contracts of euro 38
million with a corresponding entry to the shareholders&#146;
equity (euro 24 million) and to deferred tax assets (euro 14
million).<br>
</font></p>

<p><b>5 Income tax receivables</b></p>

<p><font size="2">Income tax receivables of euro 697 million
(euro 674 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Italian tax authorities</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="2">466</font></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="2">422</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Foreign
        tax authorities</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="2">208</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="2">275</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>697</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Income tax receivables of euro 697 million
(euro 674 million at December 31, 2004) concern value added tax
credits for euro 406 million (euro 459 million at December 31,
2004) and excise taxes customs duties natural gas and customs
expenses for euro 60 million (euro 29 million at December 31,
2004).<br>
</font></p>

<p><b>6 Other assets</b></p>

<p><font size="2">Other assets of euro 369 million (euro 588
million at December 31, 2004) consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Fair value
        of non-hedging derivatives</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%"><p align="right"><font
        size="2">117</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Fair value of cash flow hedge derivatives</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"><p
        align="right"><font size="2">32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">588</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="2">220</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>588</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="2"><b>369</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">At January 1, 2005 the first application of IAS
32 and 39 resulted in the accounting at the fair value of
derivatives that do not meet the conditions required to qualify
as hedging instruments for an amount, net of differentials on
derivative contracts (Italian GAAP), of euro 76 million with a
corresponding entry to the shareholders&#146; equity (euro 32
million) and to deferred tax liabilities (euro 44 million).</font></p>

<p><font size="2">At as January 1, 2005, fair value of non
hedging derivative contracts of euro 117 million consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Fair value</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Commitments</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%"
bordercolor="#000000">
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Non-hedging
        derivatives on exchange rate</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest Currency Swap</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58</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">1,277</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Currency
        Swap</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">2,378</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Outright</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="2">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Options</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="2">17</font></p>
        </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="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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,681</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Non-hedging
        derivatives on interest rate</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest Rate Swap</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14</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">1,281</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>14</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>1,281</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Non-hedging derivatives on commodities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Over the
        counter</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">394</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other</font></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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>30</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>405</b></font></p>
        </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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>117</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>5,367</b></font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Commitments concerning non-hedging derivatives
amounted to euro 5,367 million and concern commitments on
exchange rate for euro 3,681 million (fair value of euro 73
million), on interest rate for euro 1,281 million (fair value of
euro 14 million) and on commodities for euro 405 million (fair
value of euro 30 million).</font></p>

<p><font size="2">Commitments concerning cash flow hedge
derivatives amounted to euro 176 million and concern for euro 171
million hedging derivatives contracts related to the purchase of
electricity.</font></p>

<p><font size="2">Other assets of euro 220 million (euro 588
million at December 31, 2004) include accrued income and prepaid
expenses for anticipated provision of service of euro 49 million
(euro 91 million at December 31, 2004), for rentals and fees of
euro 16 million (euro 22 million at December 31, 2004) and for
premiums due to insurance companies euro 12 million (euro 18
million at December 31, 2004).</font></p>

<p><font size="2">At December 31, 2004 other assets include
differentials on derivative contracts for euro 316 million, of
which euro 242 million related to financing receivables and
liabilities.</font></p>

<p><font size="3"><b>Non-current activities</b></font></p>

<p><b>7 Fixed assets</b></p>

<p><font size="2">Fixed assets of euro 45,013 million (euro
40,586 million at December 31, 2004) consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="19%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Net value at the beginning of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Investments</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Depreciation</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Impairment</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Exchange rate differences</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Other changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Net value at the end of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Gross value at the end of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Provisions for amortization and
        writedown</strong></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="19%"><font size="2"><b>Dec.
        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>
        <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="19%" bgcolor="#EEEEEE"><font
        size="2">Land</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,185</font></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="2">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">&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="2">(8</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="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="2">(987</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">197</font></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="2">274</font></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="2">77</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Buildings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">608</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="2">45</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="2">(97</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5</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="2">1,021</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="2">1,578</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="2">3,159</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="2">1,581</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="2">Plant and machinery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,246</font></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="2">2,878</font></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="2">(3,349</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(149</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(769</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,992</font></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="2">30,849</font></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="2">66,312</font></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="2">35,463</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Industrial
        and commercial equipment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">517</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="2">159</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="2">(120</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(127</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">422</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="2">1,622</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="2">1,200</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="2">Other assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">286</font></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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(104</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="7%" 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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(7</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="2">820</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Fixed
        assets in progress and advances</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8,501</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="2">3,605</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="2">(166</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(305</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(4,424</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,211</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="2">7,762</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="2">551</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#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>39,343</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="2"><b>6,785</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="2"><b>(3,670</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(329</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,082</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(461</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>40,586</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="2"><b>80,278</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="2"><b>39,692</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2"><b>Dec.
        31, 2005</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>
        <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="19%" bgcolor="#EEEEEE"><font
        size="2">Land</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">197</font></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="2">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="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="2">(4</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="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="2">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="2">373</font></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="2">421</font></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="2">48</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Buildings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,578</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="2">41</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="2">(108</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="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="7%"><p align="right"><font
        size="2">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="2">(62</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">3,152</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="2">1,699</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="2">Plant and machinery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">30,849</font></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="2">2,443</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="2">(4,240</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(192</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,827</font></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="2">5,881</font></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="2">36,568</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">77,806</font></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="2">41,238</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Industrial
        and commercial equipment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">422</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="2">113</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="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="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="2">10</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="2">(47</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">372</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="2">1,623</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="2">1,251</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="2">Other assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(102</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="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="2">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="2">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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">864</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="2">Fixed
        assets in progress and advances</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,211</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="2">3,891</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="2">(60</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">590</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="2">(5,703</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,929</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="2">6,526</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="2">597</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#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>40,586</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="2"><b>6,558</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="2"><b>(4,576</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(264</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,451</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="2"><b>258</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="2"><b>45,013</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="2"><b>90,710</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="2"><b>45,697</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p><font size="2">Capital expenditures of euro 6,558 million
(euro 6,785 million at December 31, 2004) primarily relate to the
Exploration &amp; Production segment (euro 4,269 million), Gas
&amp; Power segment (euro 1,079 million), Refining &amp;
Marketing segment (euro 642 million) and Oilfield Services,
Construction and Engineering segment (euro 343 million, of which
euro 340 million related to construction and drilling activity).
Capital expenditures include financial expense for euro 159
million essentially relating to the Exploration &amp; Production
segment (euro 97 million), Refining &amp; Marketing segment (euro
31 million) and Gas &amp; Power segment (euro 29 million). The
interest rate used for the capitalization of finance expense was
between 2.2% and 6.1%.</font></p>

<p><font size="2">Depreciation rates used, with the exclusion of
tangible assets depreciated on a UOP basis, were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td bgcolor="#EEEEEE"><font size="1">(%)</font></td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#FFFFFF"
        height="16"><font size="2">Buildings</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#FFFFFF" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">2</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#FFFFFF" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"
        height="16"><font size="2">Plant and machinery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">2</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="2">Industrial and commercial equipment</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="4%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%" height="16"><p
        align="right"><font size="2">4</font></p>
        </td>
        <td align="right" valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%" height="16"><p
        align="right"><font size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%" height="16"><p
        align="right"><font size="2">33</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"
        height="16"><font size="2">Other assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">6</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Exchange rate differences due to the
translation of financial statements prepared in currencies other
than euro of euro 2,451 million relate to companies whose
functional currency is the U.S. dollar (euro 2,300 million).</font></p>

<p><font size="2">Impairments of euro 264 million concern
primarily mineral assets of the Exploration &amp; Production
segment (euro 156 million) and petrochemical assets of Syndial
SpA (euro 75 million). The recoverable amount considered in
determining the impairment was calculated by discounting the
future cash flows using a rate included between 6.5% and 9.8%.</font></p>

<p><font size="2">Other changes of euro 258 million include the
initial recognition and the reviews to the estimate of
dismantling and restoration of sites for euro 576 million
essentially related to the Exploration &amp; Production segment
(euro 562 million); this increase was partially offset by the
change in scope of consolidation of euro 122 million following
essentially the sale of Societ&#224; Azionaria per la Condotta di
Acque Potabili SpA (euro 82 million), Acquedotto Vesuviano SpA
(euro 20 million) and Acquedotto di Savona SpA (euro 20 million)
and the sale of businesses and the elimination of fixed assets of
euro 97 million primarily related to the Exploration &amp;
Production segment (euro 37 million).</font></p>

<p><font size="2">The gross carrying amount of fully depreciated
property, plant and equipment that is still in use amount to euro
11,076 million and primarily concerned the gasline network of
Snam Rete Gas SpA (euro 3,692 million), refineries and oil
deposits of Refining &amp; Marketing segment (euro 2,639 million)
and petrochemical plants of Polimeri Europa SpA (euro 1,901
million) and Syndial SpA (euro 1,598 million).</font></p>

<p><font size="2">Government grants recorded as decrease of
property, plant and equipment amount to euro 965 million (euro
910 million at December 31, 2004).</font></p>

<p><font size="2">At December 31, 2005 fixed assets have been
pledged for euro 475 million primarily as collateral on debt
incurred by Eni (euro 482 million at December 31, 2004).</font></p>

<p><font size="2">Assets acquired under financial lease amount to
euro 134 million and concern euro 72 million for FPSO ships used
by the Exploration &amp; Production segment as support of oil
production and treatment activities.</font></p>

<p align="left"><font size="2"><strong>Fixed assets by segment</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fixed
        assets, gross:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40,322</font></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="2">49,120</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">20,680</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="2">21,517</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,947</font></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="2">9,420</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4,311</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="2">4,402</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,524</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,878</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,300</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="2">2,248</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">213</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(88</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>80,278</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="2"><b>90,710</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Accumulated
        depreciation, amortization and writedowns:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19,561</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">24,640</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">7,445</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="2">7,757</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,586</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,864</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,130</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="2">3,263</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,878</font></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="2">2,031</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,007</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="2">2,054</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">85</font></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="2">92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>39,692</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="2"><b>45,697</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fixed
        assets, net:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20,761</font></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="2">24,480</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13,235</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="2">13,760</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,361</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,556</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,181</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="2">1,139</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,646</font></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="2">1,847</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">293</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="2">194</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">109</font></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="2">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(84</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>40,586</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="2"><b>45,013</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>8 Inventories - compulsory stock</b></p>

<p><font size="2">Inventories - compulsory stocks of euro 2,194
million (euro 1,386 million at December 31, 2004) consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Crude oil and petroleum products</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,229</font></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="2">2,037</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Natural
        gas</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">157</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="2">157</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="2"><b>1,386</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="2"><b>2,194</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Compulsory stocks, are primarily held by
Italian companies (euro 1,286 and euro 2,057 million at December
31, 2004 and at December 31, 2005, respectively) and represent
certain minimum quantities required by Italian law.</font></p>

<p>&nbsp;</p>

<p><b>9 Intangible assets</b></p>

<p><font size="2">Intangible assets of euro 3,194 million (euro
3,313 million at December 31, 2004) consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="37%"><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"><strong>Net value at the beginning of the year</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Investments</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Amortization</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Net value at the end of the year</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Gross value at the end of the year</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Provisions for amortization and
        writedown</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="37%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="37%"><font size="2"><b>Dec.
        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>
        <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="37%" bgcolor="#EEEEEE"><font
        size="2"><b>Intangible assets with a definite life</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>
        <td valign="bottom" 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="37%"><font size="2">Costs for
        research and development</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">167</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="2">549</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="2">(634</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">25</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="2">107</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="2">843</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="2">736</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2">Industrial patent rights and intellectual
        property rights</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(137</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">89</font></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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">977</font></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="2">803</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%"><font size="2">Concessions,
        licenses, trademarks and similar items</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">934</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="2">10</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="2">(106</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(22</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">816</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="2">2,154</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="2">1,338</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2">Intangible 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="2">133</font></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="2">71</font></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="2">(145</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">59</font></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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%"><font size="2">Other
        intangible assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">203</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="2">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="2">(54</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">64</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="2">224</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="2">549</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="2">325</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#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>1,599</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="2"><b>701</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="2"><b>(931</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>11</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="2"><b>1,380</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="2"><b>4,587</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="2"><b>3,207</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%"><font size="2"><b>Intangible
        assets with a indefinite life</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>
        <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="37%" bgcolor="#EEEEEE"><font
        size="2">Goodwill</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,982</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="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="1%" bgcolor="#EEEEEE">&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="2">(62</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,933</font></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>
    </tr>
    <tr>
        <td valign="bottom" width="37%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>3,581</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="2"><b>714</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="2"><b>(931</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(51</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>3,313</b></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>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2"><b>Dec. 31, 2005</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>
        <td valign="bottom" 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="37%"><font size="2"><b>Intangible
        assets with a definite life</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>
        <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="37%" bgcolor="#EEEEEE"><font
        size="2">Costs for research and development</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">699</font></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="2">(683</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">41</font></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="2">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="2">1,059</font></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="2">895</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%"><font size="2">Industrial
        patent rights and intellectual property rights</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">37</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="2">(122</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</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="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="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">919</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2">Concessions, licenses, trademarks and similar
        items</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">816</font></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="2">31</font></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="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="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="2">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="2">2,205</font></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="2">1,459</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%"><font size="2">Intangible
        assets in progress and advances</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">74</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="2">(57</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2">Other 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="2">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="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="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"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">157</font></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="2">470</font></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="2">313</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>1,380</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="2"><b>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="2"><b>(936</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(18</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>1,280</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="2"><b>4,871</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="2"><b>3,591</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#EEEEEE"><font
        size="2"><b>Intangible assets with a indefinite life</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>
        <td valign="bottom" 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="37%"><font size="2">Goodwill</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,933</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="2">2</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="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,914</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>
    </tr>
    <tr>
        <td valign="bottom" width="37%" bgcolor="#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>3,313</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="2"><b>856</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="2"><b>(936</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(39</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,194</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">&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>
</table>

<p><font size="2">Costs for research and development for euro 164
million mainly concern the purchase of mineral rights (euro 157
million). This item also includes exploration expenditures
amortized in the year 2005 for euro 565 million (euro 491 million
in the year 2004).</font></p>

<p><font size="2">Concessions, licenses, trademarks and similar
items for euro 746 million primarily concern the transmission
rights for natural gas imported from Algeria (euro 618 million)
and concessions for mineral exploration (euro 67 million).</font></p>

<p><font size="2">Other intangible assets with a definite life of
euro 157 million include royalties for the use of licenses by
Polimeri Europa SpA (euro 86 million) and the estimated
expenditures for social projects to be incurred following
contractual commitments with the Basilicata Region related to
mineral development programs in Val d&#146;Agri (euro 32
million).</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="80%">
    <tr>
        <td bgcolor="#EEEEEE"><font size="1">(%)</font></td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
        <td bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#FFFFFF"
        height="16"><font size="2">Costs for research and
        development</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#FFFFFF" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">10</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#FFFFFF" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#FFFFFF" height="16"><p align="right"><font
        size="2">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"
        height="16"><font size="2">Industrial patent rights and
        intellectual property rights</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">20</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="2">Concessions, licenses, trademarks and similar
        items</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="4%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%" height="16"><p
        align="right"><font size="2">7</font></p>
        </td>
        <td align="right" valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%" height="16"><p
        align="right"><font size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%" height="16"><p
        align="right"><font size="2">33</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"
        height="16"><font size="2">Other intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="35%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="4%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td align="right" valign="bottom" width="3%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="2">25</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The gross carrying amount of fully depreciated
intangible assets that is still in use amount to euro 10,340
million and primarily concern costs for mineral research of
Exploration &amp; Production segment (euro 9,748 million).</font></p>

<p><font size="2">Goodwill for euro 1,914 million concerns
primarily the Oilfield Services, Construction and Engineering
segment (euro 823 million, of which euro 805 million relates to
the purchase of Bouygues Offshore SA, now Saipem SA), the Gas
&amp; Power segment (euro 817 million, of which euro 803 million
relates to the Public Offering for Italgas SpA shares during
2003), the Exploration &amp; Production segment (euro 220
million, of which euro 215 million relates to the purchase of
Lasmo Plc, now Eni Lasmo Plc) and the Refining &amp; Marketing
segment (euro 51 million).</font></p>

<p><font size="2">In order to determine the recoverable amount,
goodwill related to the acquisition of Bouygues Offshore SA and
Italgas SpA has been allocated to the following cash generating
units:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="90%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="90%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="90%"><font size="2"><b>Bouygues
        Offshore SA</b></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="90%" bgcolor="#EEEEEE"><font
        size="2">Offshore constructions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">403</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%"><font size="2">Onshore
        constructions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">165</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%" bgcolor="#EEEEEE"><font
        size="2">LNG</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">159</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%"><font size="2">MMO -
        Maintenance Modification and Operation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">78</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%" 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"><b>805</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%"><font size="2"><b>Italgas
        SpA</b></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="90%" bgcolor="#EEEEEE"><font
        size="2">Domestic gas market</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">706</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%"><font size="2">Foreign
        gas market</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">97</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="90%" 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"><b>803</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The recoverable amount of cash generating units
is determined based on expected cash flow estimated by using the
strategic market assumptions of Eni&#146;s 2006-2009 plan and
discounted by using a rate included between 5.6% and 7.7%. For
the years not included in the strategic, Eni has used an
incremental rate included between 0% and 2%. Key assumptions are
based on past experience and take into account the current level
of interest rate.</font></p>

<p><font size="2">Other changes of euro 39 million primarily
relate to the sale of Societ&#224; Azionaria per la Condotta di Acque
Potabili SpA (euro 18 million) and Acquedotto Vesuviano SpA (euro
3 million).<br>
</font></p>

<p><b>10 Investments</b></p>

<p><font size="2"><b>Investments accounted for using the equity
method</b></font></p>

<p><font size="2">Investments accounted for using the equity
method of euro 3,890 million (euro 3,156 million at December 31,
2004) consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Value of the beginning of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Acquisitions and subscriptions</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Gain from the valuation of investments
        accounted for using the equity method</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Loss from the valuation of investments
        accounted for using the equity method</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Deduction for dividends</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Exchange rate differences</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Other changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Value of the end of the year</strong></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Dec.
        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>
        <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="28%" bgcolor="#EEEEEE"><font
        size="2">Investments in unconsolidated subsidiaries</font></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>
        <td 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="2">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="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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6</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="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="2">(4</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">109</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Investments
        in joint ventures</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,851</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="2">119</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="2">215</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="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(276</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(47</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">90</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="2">1,946</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Investments in affiliates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">947</font></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="2">119</font></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="2">180</font></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="2">(57</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(71</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(19</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="7%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,101</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>2,904</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="2"><b>249</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="2"><b>401</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="2"><b>(69</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(347</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(70</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>88</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="2"><b>3,156</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>Dec. 31, 2005</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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="28%"><font size="2">Investments
        in unconsolidated subsidiaries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">109</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="2">30</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="2">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="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10</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="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">146</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Investments in joint ventures</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,946</font></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="2">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="2">375</font></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="2">(27</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(202</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">120</font></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="2">2,322</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Investments
        in affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,101</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="2">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="2">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="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(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="7%"><p align="right"><font
        size="2">34</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="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="7%"><p align="right"><font
        size="2">1,422</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#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>3,156</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="2"><b>48</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="2"><b>770</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="2"><b>(33</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(301</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>142</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="2"><b>108</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="2"><b>3,890</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p><font size="2">Acquisitions and subscriptions for euro 48
million concerned mainly the subscriptions of capital increase of
Servizi Porto Marghera Scrl (euro 17 million), Enirepsa Gas Ltd
(euro 12 million) and Lasmo Petroleum Development BV (euro 10
million) and the acquisition of Acam Clienti SpA by Eni SpA (euro
6 million).</font></p>

<p><font size="2">Gains from the valuation of investments using
the equity method of euro 770 million primarily relate to Galp
Energia SGPS SA (euro 280 million), Trans Austria Gasleitung GmbH
(euro 54 million), Lipardiz Constru&#231;ao de Estruturas Maritimas
Lda (euro 46 million), Uni&#243;n Fenosa Gas SA (euro 44 million) and
Blue Stream Pipeline Co BV (euro 30 million).</font></p>

<p><font size="2">Losses from the valuation of investments using
the equity method of euro 33 million primarily relate to
Geopromtrans Llc (euro 11 million) and Enirepsa Gas Ltd (euro 11
million).</font></p>

<p><font size="2">Deduction following the distribution of
dividends of euro 301 million primarily relates to Galp Energia
SGPS SA (euro 56 million), Trans Europa Naturgas Pipeline GmbH
(euro 29 million) and Trans Austria Gasleitung GmbH (euro 28
million) and Supermetanol CA (euro 28 million).</font></p>

<p><font size="2">The net carrying value of euro 3,890 million
(euro 3,156 million at December 31, 2004) consisted of the
following companies:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Net value</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Eni&#146;s interest</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Net value</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Eni&#146;s interest</strong></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="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </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="60%"><font size="2">Unconsolidated
        subsidiaries:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Eni Btc Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">48</font></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="2">100.00</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="2">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="2">100.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Others <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">61</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%"><p align="right"><font
        size="2">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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" 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"><b>109</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>146</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="60%"><font size="2">Joint
        ventures:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Uni&#243;n Fenosa Gas SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">404</font></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="2">50.00</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="2">459</font></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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Blue
        Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">50.00</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="2">280</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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Raffineria di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">168</font></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="2">50.00</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="2">172</font></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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- EnBW -
        Eni Verwaltungsgesellschaft mbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">150</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="2">50.00</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="2">168</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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Azienda Energia e Servizi Torino SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">49.00</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="2">165</font></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="2">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Eteria
        Parohis Aeriou Thessalonikis AE</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">151</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="2">49.00</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="2">152</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="2">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Super Octanos CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">82</font></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="2">49.00</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">60</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="2">89.00</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="2">88</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="2">89.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Supermetanol CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">59</font></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="2">34.51</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">35.20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Unimar
        Llc</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">97</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="2">50.00</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="2">84</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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- FPSO Mystras - Produ&#231;&#227;o de Petroleo Lda</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">75</font></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="2">50.00</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="2">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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Lipardiz
        Constru&#231;&#227;o de Estruturas Maritimas Lda</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">20</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="2">50.00</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="2">66</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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- 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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50.00</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        Siciliana Gas SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">50.00</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="2">60</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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Toscana Gas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">46.10</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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">46.10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Eteria
        Parohis Aeriou Thessalias EA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">41</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="2">49.00</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="2">39</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="2">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Transitgas AG</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">46.00</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="2">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="2">46.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        CMS&amp;A Wll</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">15</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="2">20.00</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="2">31</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="2">20.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Others <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="2">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="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="2">134</font></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="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>1,946</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>2,322</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="60%" bgcolor="#EEEEEE"><font
        size="2">Affiliates:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Galp
        Energia SGPS SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">670</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="2">33.34</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="2">896</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="2">33.34</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- United Gas Derivatives Co (UGDG)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">33.33</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">128</font></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="2">33.33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        Fertilizantes Nitrogenados de Oriente CEC</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">75</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="2">20.00</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="2">92</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="2">20.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Haldor Tops&#248;e AS</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">50.00</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="2">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="2">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Acam Gas
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">44</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="2">49.00</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="2">45</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="2">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Distribuidora de Gas del Centro SA</font></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>
        <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="2">31.35</font></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="2">41</font></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="2">31.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Termica
        Milazzo Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">27</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="2">40.00</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="2">21</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="2">40.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Others <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="2">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="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="2">137</font></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="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>1,101</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>1,422</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="60%" 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"><b>3,156</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,890</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>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 25
        million.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">The net value of investments in unconsolidated
subsidiaries and affiliates include the differences between
purchase price and Eni&#146;s equity in the investments of euro
553 million. Such differences relate to Uni&#243;n Fenosa Gas SA
(euro 195 million), EnBW - Eni Verwaltungsgesellschaft mbH (euro
180 million), Galp Energia SGPS SA (euro 107 million) and Azienda
Energia e Servizi Torino SpA (euro 71 million).</font></p>

<p><font size="2">Provisions for losses related to investments of
euro 21 million (euro 30 million at December 31, 2004), included
in the provisions for contingencies, relate essentially to
Geopromtrans Llc (euro 19 million).</font></p>

<p><font size="2"><b>Other investments</b></font></p>

<p><font size="2">Other investments of euro 421 million (euro 529
million at December 31, 2004) consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Net value at the beginning of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Acquisitions and subscriptions</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Sales</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Exchange rate differences</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Other changes</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Net value at the end of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Gross value at the end of the year</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><font
        size="1"><strong>Accumulated impairment charges</strong></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="8%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Dec.
        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>
        <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="28%" bgcolor="#EEEEEE"><font
        size="2">Unconsolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">78</font></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="2">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"><p
        align="right"><font size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">106</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="2">2</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="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">107</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="2">117</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="2">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Other investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">316</font></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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(18</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(20</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="7%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">344</font></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="2">398</font></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="2">54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>501</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="2"><b>67</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="2"><b>(18</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(20</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>(1</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>529</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="2"><b>601</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="2"><b>72</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>Dec. 31, 2005</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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="28%"><font size="2">Unconsolidated
        subsidiaries</font></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="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><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="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="2">(38</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">41</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="2">68</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="2">27</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Affiliates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">(100</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="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="2">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="2">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="2">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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Other
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">344</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="2">23</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="2">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">41</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="2">(7</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">371</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="2">375</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="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#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>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="2"><b>24</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="2"><b>(130</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>41</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="2"><b>(43</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>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="2"><b>452</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="2"><b>31</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p><font size="2">Other investments related to unconsolidated
subsidiaries and affiliates are valued at cost adjusted for
impairment. Investments in other companies are essentially valued
at cost adjusted for impairment, because the fair value cannot be
reliably determined.</font></p>

<p><font size="2">Acquisitions and subscriptions for euro 24
million essentially concern the subscriptions to the capital
increase of Darwin LNG Pty Ltd (euro 22 million).</font></p>

<p><font size="2">Sales of euro 130 million essentially relate to
the sale of Erg Raffinerie Mediterranee SpA (euro 100 million)
and Discovery Producer Services Llc (euro 20 million).</font></p>

<p><font size="2">The net carrying amount of Other investments of
euro 421 million (euro 529 million at December 31, 2004)
concerned the following companies:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Net value</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Eni&#146;s interest</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Net value</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Eni&#146;s interest</strong></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="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </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="60%"><font size="2">Unconsolidated
        subsidiaries <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>78</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>41</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="60%" bgcolor="#EEEEEE"><font
        size="2">Affiliates:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Erg
        Raffinerie Mediterranee SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">100</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="2">28.00</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Others <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="2">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="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="2">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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>107</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other investments:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Darwin
        LNG Pty Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">12.04</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="2">126</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="2">12.04</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Nigeria LNG Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.40</font></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="2">100</font></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="2">10.40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- Ceska
        Rafinerska AS</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">30</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="2">16.33</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="2">35</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="2">16.33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Discovery Producer Services Llc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">16.67</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="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="60%"><font size="2">-
        Interconnector (UK) Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">23</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="2">4.62</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="2">27</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="2">5.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Others <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="2">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">&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="2">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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>344</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>371</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="60%" 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"><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="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="2"><b>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="8%" bgcolor="#EEEEEE">&nbsp;</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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 25
        million.</font></td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">The provisions for losses related
to investments of euro 64 million (euro 61 million at December
31, 2004), included in the provisions for contingencies,
concerned the following companies:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Industria
        Siciliana Acido Fosforico - ISAF SpA (in liquidation)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Caspian Pipeline Consortium R - Closed Joint
        Stock Co</font></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>
        <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="2">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">8</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="2"><b>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"><p
        align="right"><font size="2"><b>64</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">The following are the amounts,
according to Eni&#146;s interest, from the last available
financial statements of unconsolidated subsidiaries, joint
ventures and affiliates:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="29%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="29%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="29%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="29%"><hr size="1" noshade>
        </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="9%"><p align="center"><font
        size="1"><strong>Unconsolidated subsidiaries</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Joint ventures</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Affiliates</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Unconsolidated subsidiaries</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Joint ventures</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Affiliates</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Total assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,341</font></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="2">6,699</font></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="2">3,603</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,404</font></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="2">7,423</font></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="2">2,763</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Total
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,227</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="2">4,755</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="2">2,530</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="2">1,263</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="2">5,161</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="2">1,295</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,361</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,250</font></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="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,560</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Operating
        profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">318</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="2">115</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="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">609</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="2">176</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Net profit</font></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>
        <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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">172</font></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="2">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="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">328</font></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="2">371</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Total assets and total liabilities relating to
unconsolidated companies of euro 1,404 and euro 1,263 million
(euro 1,341 and euro 1,227 million at December 31, 2004) concern
for euro 1,004 and euro 1,004 (euro 935 and euro 935 million at
December 31, 2004) companies for which the consolidation does not
produce significant effects.<br>
</font></p>

<p><b>11 Other financial assets</b></p>

<p><font size="2">Other financial receivables of euro 1,050
million (euro 936 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Financial receivables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">913</font></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="2">1,001</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Securities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">23</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="2">49</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="2"><b>936</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="2"><b>1,050</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Financial receivables are presented net of an
impairment charge of euro 25 million (euro 21 million at December
31, 2004).</font></p>

<p><font size="2">Financial receivables of euro 1,001 million
(euro 913 million at December 31, 2004) concern receivables made
for operating purposes for euro 754 million (euro 673 million at
December 31, 2004) and non-operating financial receivables for
euro 247 million (euro 240 million at December 31, 2004), of
which euro 241 million related to a fixed deposit held by Eni
Lasmo Plc as a guarantee of a debt issue (euro 234 million at
December 31, 2004). Financial receivables made for operating
purposes primarily concern the Gas &amp; Power segment (euro 499
million) and the Exploration &amp; Production segment (euro 170
million). The increase in financial receivables made for
operating purposes of euro 81 million primarily concern the
exchange rate differences related to the translation of financial
statements prepared in currencies other than euro (euro 96
million).</font></p>

<p><font size="2">Receivables in currency other than euro amount
to euro 845 million (euro 712 million at December 31, 2004).</font></p>

<p><font size="2">Receivables due beyond 5 years amount to euro
625 million (euro 402 million at December 31, 2004).</font></p>

<p><font size="2">Securities of euro 49 million are considered
held-to-maturity investments and concern securities issued by the
Italian Government for euro 22 million and securities issued by
Italian and foreign financial entities for euro 27 million.</font></p>

<p><font size="2">At January 1, 2005, the date of the first
application of IAS 32 and 39, securities for euro 50 million were
reclassified as held-to-maturity.</font></p>

<p><font size="2">Securities for euro 21 million concern
securities made for operating purposes (euro 22 million at
December 31, 2004).</font></p>

<p><font size="2">The valuation at the fair value of other
financial assets did not have any significant effect.<br>
</font></p>

<p><b>12 Deferred tax assets</b></p>

<p><font size="2">Deferred tax assets of euro 1,861 million (euro
1,827 million at December 31, 2004) are net of deferred tax
liabilities for which Eni possesses the legal right of offset of
euro 3,347 million (euro 2,346 million at December 31, 2004).</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="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Exchange rate differences</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,827</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,778</font></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="2">(927</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">158</font></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="2">(975</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,861</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Other changes of euro 975 million primarily
concern the set-off, for each company, of deferred tax assets
with deferred tax liabilities (euro 1,035 million). Such decrease
has been partially offset by provisions to the reserves of the
shareholders&#146; equity following the first application of IAS
32 and 39 (euro 60 million).</font></p>

<p><font size="2">Deferred tax assets are described in Note 21.<br>
</font></p>

<p><b>13 Other non-current assets</b></p>

<p><font size="2">Other non-current assets of euro 995 million
(euro 1,008 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Accounts
        receivable from:</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="2">- Italian tax authorities</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="2">&nbsp;&nbsp;.
        income tax credits</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">506</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="2">508</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;. interest on tax credits</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">294</font></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="2">309</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">&nbsp;&nbsp;.
        value added tax (VAT)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">55</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="2">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;. other</font></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>
        <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="2">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>863</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="2"><b>861</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- foreign tax authorities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>912</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="2"><b>905</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other receivables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        non-current assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">11</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="2"><b>1,008</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="2"><b>995</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Current liabilities</b></font></p>

<p><b>14 Current financial liabilities</b></p>

<p><font size="2">Current financial liabilities of euro 4,612
million (euro 4,150 million at December 31, 2004) consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Banks</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,189</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="2">3,894</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Financial liabilities represented by commercial
        papers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,540</font></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="2">60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        financing institutions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">421</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="2">658</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="2"><b>4,150</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="2"><b>4,612</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The increase of current financial liabilities
of euro 462 million is primarily due to the exchange rate
differences related to the translation of financial statements
prepared in currencies other than euro (euro 595 million). Such
increase has been partially offset by the balance of payments and
new proceeds of liabilities (euro 144 million).</font></p>

<p><font size="2">Short-term debt by currency was as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,393</font></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="2">4,029</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">U.S.
        Dollar</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,329</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="2">323</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">British Pound</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        currencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">175</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="2">256</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="2"><b>4,150</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="2"><b>4,612</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The weighted average interest rate of
Eni&#146;s short-term debt was 2.5% and 2.8% for the years ended
December 31, 2004 and 2005, respectively.</font></p>

<p><font size="2">On December 31, 2005 Eni maintained committed
and uncommitted unused lines of credit for euro 5,855 and euro
4,783 million, respectively (euro 5,304 million and euro 7,771
million, respectively, at December 31, 2004). These agreements
provide for interest charges based on prevailing market
conditions. Commission fees on unused lines of credit are not
significant.<br>
</font></p>

<p><b>15 Trade and other payables</b></p>

<p><font size="2">Trade and other payables of euro 13,095 million
(euro 10,533 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Trade
        payables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5,837</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="2">8,170</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Advances</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">1,184</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        payables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,485</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="2">3,741</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="2"><b>10,533</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="2"><b>13,095</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Trade payables of euro 8,170 million increased
by euro 2,333 million in 2005 as compared to 2004. Such increase
primarily concerns the Gas &amp;&nbsp;Power segment (euro 969
million), Refining &amp; Marketing segment (euro 577 million) and
Exploration &amp; Production segment (euro 334 million) and
includes the exchange rate differences related to the translation
of financial statements prepared in currencies other than euro
(euro 137 million).</font></p>

<p><font size="2">Advances of euro 1,184 million (euro 1,211
million at December 31, 2004) concern payments received in excess
of the value of the work in progress performed for euro 550
million (euro 554 million at December 31, 2004), advances on
contract work in progress for euro 309 million (euro 47 million
at December 31, 2004) and other advances for euro 325 million
(euro 610 million December 31, 2004). Advances on contract work
in progress of euro 859 million (euro 601 million at December 31,
2004) concern the Oilfield Services, Construction and Engineering
segment.</font></p>

<p><font size="2">Other payables of euro 3,741 million (euro
3,485 million at December 31, 2004) included the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Payables
        due to:</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="2">- joint venture operators in exploration and
        production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">655</font></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="2">1,264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        suppliers in relation to investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">996</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="2">951</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- employees</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">264</font></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="2">314</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Italian
        governmental entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">240</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="2">313</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- social security entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>2,387</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="2"><b>3,071</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Cautionary deposit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        payables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,078</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="2">664</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="2"><b>3,485</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,741</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Payables with related parties are described in
Note 32.<br>
</font></p>

<p><b>16 Taxes payable</b></p>

<p><font size="2">Taxes payable of euro 3,430 million (euro 2,498
million at December 31, 2004) consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Income
        taxes payable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,200</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="2">1,742</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Customs and excise duties</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">793</font></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="2">896</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">505</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="2">792</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="2"><b>2,498</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,430</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Taxes payable of euro 1,742 million increased
by euro 542 million. The increase resulted primarily from foreign
companies for euro 622 million following the increase of profit
before income taxes and the exchange rate differences related to
the translation of financial statements prepared in currencies
other than euro (euro 73 million); such increase was partially
offset by the decrease of the income taxes of Italian companies
(euro 80 million).<br>
</font></p>

<p><b>17 Other current liabilities</b></p>

<p><font size="2">Other current liabilities of euro 613 million
(euro 505 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fair value
        of non-hedging derivatives</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="2">378</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Fair value of cash flow hedge derivatives</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="2">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">505</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="2">230</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="2"><b>505</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="2"><b>613</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">At January 1, 2005, the first application of
IAS 32 and 39, resulted in the accounting at the fair value of
derivatives that do not meet the conditions required to qualify
as hedging instruments for an amount, net of differentials on
derivative contracts, of euro 82 million with a corresponding
entry to the shareholders&#146; equity (euro 36 million) and to
deferred tax assets (euro 46 million).</font></p>

<p><font size="2">Fair value of non-hedging derivative contracts
of euro 378 million consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Fair value</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Commitments</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Non-hedging derivatives on exchange rate</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Currency
        Swap</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">139</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">6,370</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest Currency Swap</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">73</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">2,316</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">57</font></p>
        </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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>214</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>8,743</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Non-hedging
        derivatives on interest rate</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Interest Rate Swap</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">101</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">5,145</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>101</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>5,145</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Non-hedging derivatives on commodities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Options</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">23</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Over the counter</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">21</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">323</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Future</font></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="9%"><p align="right"><font
        size="2">67</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14</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">10</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>63</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>417</b></font></p>
        </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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>378</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>14,305</b></font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Commitments concerning cash flow hedge
derivatives amounted to euro 42 million and concerned commitments
on exchange rate derivatives.</font></p>

<p><font size="2">At December 31, 2004 other liabilities of euro
505 million included differentials on derivative contracts for
euro 141 million, of which euro 46 million related to financing
receivables and liabilities.</font></p>

<p><font size="2"><b>Non-current liabilities<br>
</b></font></p>

<p><b>18 Long-term debt and current portion of long-term debt</b></p>

<p><font size="2">Long-term debt and the current portion of
long-term debt, including the relevant expiration dates, were as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="center" valign="bottom" width="28%"><p
        align="left"><font size="1">(million euro)</font></p>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="15%"><font
        size="1"><strong>December 31,</strong></font></td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%">&nbsp;</td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="47%"><font
        size="1"><strong>Long-term maturity</strong></font></td>
    </tr>
    <tr>
        <td align="center" valign="bottom" width="28%">&nbsp;</td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="15%"><hr
        size="1" noshade>
        </td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%">&nbsp;</td>
        <td align="center" valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="47%"><hr
        size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="20%"><p align="left"><font
        size="1">Type of debt instrument</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Maturity range </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2004</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2005</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Current maturity 2006</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2007</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2008</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2009</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">2010</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">After</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Total</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="20%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="20%" bgcolor="#EEEEEE"><font
        size="2">Banks:</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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="20%"><font size="2">- ordinary
        loans</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><strong>2006-2017</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,166</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,174</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">261</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">493</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">272</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">248</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,913</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="20%" bgcolor="#EEEEEE"><font
        size="2">- interest rate assisted loans</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>2006-2013</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">101</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">32</font></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</font></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</font></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</font></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</font></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</font></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>
    </tr>
    <tr>
        <td valign="bottom" width="20%"><font size="2">- other
        financings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><strong>2006</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="20%" bgcolor="#EEEEEE"><font
        size="2">Ordinary bonds</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>2006-2027</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,331</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,339</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">391</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" 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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">471</font></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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">939</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,707</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">4,948</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="20%"><font size="2">Other
        financing institutions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><strong>2006-2019</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">927</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">825</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">46</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">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">124</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">181</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">300</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">779</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="20%" 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"><strong>8,534</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>8,386</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>733</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>1,339</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>661</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>524</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>1,370</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>3,759</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>7,653</strong></font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Long-term debt of euro 8,386 million including
the current portion of long-term debt, decreased by euro 148
million. Such decrease is primarily due to the balance of
payments and new proceeds of liabilities (euro 376 million) and
to the effect of exchange rate differences on the alignment to
the year end exchange rate of debts denominated in currencies
other than functional currency (euro 309 million) and, as
increase, to the effect of exchange rate differences on the
translation of financial statements prepared in currencies other
than euro (euro 478 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 Statementsor of a rating not
inferior to A - (S&amp;P) and A3 (Moodys). At December 31, 2004
and 2005, the amount of short and long-term debt subject to
restrictive covenants was euro 1,104 million and euro 1,258
million, respectively. Furthermore, Saipem SpA entered into
financing arrangements with banks for euro 275 million (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 its financing arrangements.</font></p>

<p><font size="2">Bonds of euro 5,339 million concern bonds
issued within the Medium Term Notes Program for a total of euro
4,365 million and other bonds for a total of euro 974 million.</font></p>

<p><font size="2">Bonds as of December 31, 2005, including the
issuing entity, the expiration dates and the interest rates, by
currency, were as follows:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Amount</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Discount on bond issue and accrued
        expense</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>Value</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="17%"><p align="center"><font
        size="1"><strong>Maturity</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="17%"><p align="center"><font
        size="1"><strong>% rate</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&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="17%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="17%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="1">(million
        euro)</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%"><p align="center"><font
        size="1"><strong>from</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>to</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>from</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><strong>to</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Issuing
        entity</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>
        <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="28%" bgcolor="#EEEEEE"><font
        size="2"><em>Euro Medium Term Notes:</em></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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="28%"><font size="2">- Eni SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,500</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="2">41</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="2">1,541</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="left"><font
        size="2">Euro</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="2">2013</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="2">4.625</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">876</font></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="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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">874</font></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="left"><font size="2">British pound</font></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="2">2007</font></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="2">2019</font></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="2">4.875</font></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="2">5.250</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">516</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="2">5</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="2">521</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="left"><font
        size="2">Euro</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="2">2007</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="2">2015</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="2">variable</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>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni SpA</font></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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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"><p
        align="right"><font size="2">516</font></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="left"><font size="2">Euro</font></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="2">2010</font></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="2">6.125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">274</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="2">5</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="2">279</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="left"><font
        size="2">Euro</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="2">2008</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="2">2024</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="2">2.876</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="2">5.050</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">216</font></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="2">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="2">219</font></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="left"><font size="2">U.S. dollar</font></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="2">2013</font></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="2">2015</font></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="2">4.450</font></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="2">4.800</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">161</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="2">4</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="2">165</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="left"><font
        size="2">U.S. dollar</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="2">2006</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="2">2007</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="2">variable</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>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">152</font></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="2">152</font></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="left"><font size="2">Japanese yen</font></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="2">2008</font></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="2">2021</font></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="2">0.810</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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.320</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">83</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="2">1</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="2">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="left"><font
        size="2">Swiss franc</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="2">2006</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="2">2010</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="2">1.750</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="2">2.043</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">&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="2">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="left"><font size="2">Swiss franc</font></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="2">2007</font></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="2">variable</font></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="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>4,292</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="2"><b>73</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="2"><b>4,365</b></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%">&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="28%" bgcolor="#EEEEEE"><font
        size="2"><em>Other bonds:</em></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&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="28%"><font size="2">- Eni USA
        Inc</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">339</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="2">2</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="2">341</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="left"><font
        size="2">U.S. dollar</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="2">2027</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="2">7.300</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni USA Inc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="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="7%" bgcolor="#EEEEEE"><p
        align="left"><font size="2">U.S. dollar</font></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="2">2006</font></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="2">7.500</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">- Eni
        Lasmo Plc <sup>(*)</sup></font></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="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">(11</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="left"><font
        size="2">British pound</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="2">2009</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="2">10.375</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">- Eni USA Inc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">170</font></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="2">170</font></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="left"><font size="2">U.S. dollar</font></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="2">2007</font></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="2">6.750</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>982</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="2"><b>(8</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>974</b></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%">&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="28%" bgcolor="#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>5,274</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="2"><b>65</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="2"><b>5,339</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">&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>
</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%">&nbsp;</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 bond is
        guaranteed by a fixed deposit recorded under non-current
        financial assets (euro 241 million).</font></td>
    </tr>
</table>

<p><font size="2">Bonds due within 18 months amount to euro 435
million and concern Eni USA Inc (euro 255 million) and Eni
Coordination Center SA (euro 180 million). During 2005 Eni issued
bonds for euro 441 million through Eni Coordination Center SA.</font></p>

<p><font size="2">Long-term debt and the current portion of
long-term debt, including the weighted average interest rates, by
currency, was as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2004<br>
        </strong>(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Average rate</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2005<br>
        </strong>(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Average rate</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,704</font></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="2">3.3</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="2">5,344</font></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="2">3.6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">U.S.
        dollar</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,476</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="2">6.4</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="2">1,709</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="2">7.0</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">British pound</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,082</font></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="2">6.1</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,082</font></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="2">5.3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Japanese
        yen</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">96</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="2">1.4</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="2">153</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="2">1.4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Swiss franc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">146</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        currencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">30</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="2">8.7</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" 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"><b>8,534</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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,386</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>
</table>
</center></div>

<p><font size="2">On December 31, 2005 Eni maintained committed
unused lines of credit for euro 1,070 million (euro 710 million
at December 31, 2004). 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">Financial liabilities for euro 251 million are
guaranteed by mortgages and liens on fixed assets of consolidated
companies and by pledges on securities and fixed deposits (euro
274 million at December 31, 2004).</font></p>

<p><font size="2">Fair value of long-term debt, including the
current portion of long-term debt, amounts to euro 8,732 million
(euro 8,748 million at December 31, 2004) and consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Banks</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">2,276</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">2,222</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Ordinary bonds</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,509</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">5,633</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        financing institutions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">963</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">877</font></p>
        </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="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>8,748</strong></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"><strong>8,732</strong></font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Fair value was calculated by discounting the
future cash flows using rates between 2.8% and 5% (2.4% and 5.2%
at December 31, 2004).<br>
</font></p>

<p><b>19 Provisions for contingencies</b></p>

<p><font size="2">Provisions for contingencies of euro 7,679
million (euro 5,736 million at December 31, 2004) consisted of
the following:</font></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"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Provisions for site restoration and abandonment</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,967</font></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="2">694</font></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="2">(108</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">95</font></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="2">2,648</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Provisions
        for environmental risks</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,649</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="2">522</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="2">(157</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">2,103</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Loss adjustments and actuarial provisions for
        Eni&#146;s insurance companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">573</font></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="2">100</font></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="2">(18</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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">707</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Provisions
        for contract penalties and disputes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">208</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="2">359</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="2">(36</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">534</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Provisions for revision of selling prices </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="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="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="2">321</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Provisions
        for taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">87</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="2">(38</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">25</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="2">309</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Provisions for restructuring or decommissioning
        of production facilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">214</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(113</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="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="2">195</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Provisions
        for OIL insurance</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">91</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="2">36</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="2">127</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Provisions for 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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">(3</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(27</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">85</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Provisions
        for onerous contracts</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="2">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="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">15</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="2">80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Provisions for prize promotion</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(57</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Other<sup>
        (*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">645</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="2">264</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="2">(173</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">518</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="2"><b>5,736</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,624</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="2"><b>(709</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>28</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="2"><b>7,679</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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 50
        million.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">Provisions for site restoration and abandonment
of euro 2,648 million represent primarily the estimated costs for
well-plugging, abandonment and site restoration (euro 2,613
million). The provisions of the year of euro 694 million include
the initial recognition and the reviews to the estimate of
dismantling and restoration of sites recognized as a balancing
entry to the asset to which they refers (euro 592 million) and
financial expense due to the passage of time charged to the
profit and loss account (euro 102 million); the discount rate
used is included between 3% and 5.4%. Other changes of euro 95
million include exchange rate differences on the translation of
financial statements prepared in currencies other than euro (euro
109 million).</font></p>

<p><font size="2">Provisions for environmental risks of euro
2,103 million represent, primarily, the estimated costs of
remediation in accordance with existing laws and regulations, of
active production facilities for Syndial SpA (euro 1,445
million), the Refining &amp; Marketing segment (euro 405
million), the Corporate and financial companies aggregate,
relating to guarantees issued in relation to properties sold
(euro 122 million) and the Gas &amp; Power segment (euro 61
million). Provisions in 2005 of euro 522 million primarily
concern the Refining &amp; Marketing segment (euro 282 million),
Syndial SpA (euro 170 million) and the Corporate and financial
companies aggregate (euro 50 million).</font></p>

<p><font size="2">Loss adjustments and actuarial provisions for
Eni&#146;s insurance companies of euro 707 million represent the
liabilities accrued for claims on insurance policies underwritten
by Eni&#146;s captive insurance company. Deductions of euro 18
million concern deductions not corresponding to cash expenditures
as regards to the reported accidents.</font></p>

<p><font size="2">Provisions for contract penalties and disputes
of euro 534 million are based on Eni&#146;s best estimate of the
expected probable liability. Provisions of the year for euro 359
million primarily concern the fine imposed on February 15, 2006
by the Antitrust Authority on Eni (euro 290 million). Deductions
of euro 36 million concern deductions not corresponding to cash
expenditures for euro 23 million.</font></p>

<p><font size="2">Provisions for the revision of selling prices
of euro 321 million primarily concern the provision for the
estimated adverse impact of the application of Decision 248/2004
by the Italian Authority for Electricity and Gas from January 1,
2005 affecting the parameters for the upgrading of the raw
material component in price formulas for end users (euro 225
million).</font></p>

<p><font size="2">Provisions for taxes of euro 309 million
primarily include charges for unsettled tax claims to uncertain
application of the tax regulation for foreign companies of the
Exploration &amp; Production segment (euro 268 million).
Deductions of euro 38 million concern deductions not
corresponding to cash expenditures for euro 30 million.</font></p>

<p><font size="2">Provisions for restructuring or decommissioning
of production facilities of euro 195 million mainly represent the
estimated costs related to divestments and facilities closures of
the Refining &amp; Marketing segment (euro 156 million).
Deductions of euro 113 million concern deductions not
corresponding to cash expenditures for euro 28 million.</font></p>

<p><font size="2">Provisions for OIL insurance of euro 127
million include the provisions related to the increase of charges
that will be paid in the next 5 years period, due by Eni for
participation in the mutual insurance of Oil Insurance Ltd,
following to the greater number of accidents occurred in 2004 and
2005.</font></p>

<p><font size="2">Provisions for losses on investments of euro 85
million represent losses incurred to date in excess of the
carrying value of investments (see Note 10).</font></p>

<p><font size="2">Provisions for onerous contracts of euro 80
million concern Syndial SpA and relate to contracts for which the
termination or execution costs exceed the benefits arising from
that contract.</font></p>

<p><font size="2">Provisions for prize promotion of euro 52
million include the provisions of the Refining &amp; Marketing
segment in relation to promotions directed towards the attainment
of an increase on sales volumes on the Agip branded network and
intended for station operators, for truckers and motorists that
perform the fuel fill-up at the &quot;Isole Fai da Te&quot;.</font></p>

<p><font size="2">Deductions of other provisions of euro 173
million include deductions not corresponding to cash expenditures
for euro 53 million, of which euro 27 million concern provisions
for long-term construction contracts.</font></p>

<p><font size="2">Other changes of euro 28 million include
exchange differences due to the translation of financial
statements prepared in currencies other than euro of euro 159
million; such increase has been partially offset by
reclassifications essentially to social projects and financial
receivables (euro 140 million).<br>
</font></p>

<p><b>20 Provisions for employee benefits</b></p>

<p><font size="2">Provisions for employee benefits of Eni Group
concern indemnities upon termination of employment, pension plans
with benefits measured in consideration of the employee&#146;s
year compensation preceding the retirement and other benefits.</font></p>

<p><font size="2">Provisions for indemnities upon termination of
employment essentially concern the provisions for employee
termination indemnities (&quot;TFR&quot;), regulated by article
2120 of the Italian Civil Code. The indemnity is paid out as
capital and is determined by the total of the provisions set
aside, calculated in consideration of the employee&#146;s
compensation during the service period, and revalued until the
retirement. Provisions to TFR, considered for the determination
of liabilities and costs, are net of the amounts paid to pension
funds.</font></p>

<p><font size="2">Pension funds concern defined benefit plans of
foreign companies located, primarily, in United Kingdom, Nigeria
and Germany. Benefits consist of a return on capital determined
on the basis of the length of service and the compensation paid
in the last year of service or an average annual compensation
paid in a determined period preceding the retirement.</font></p>

<p><font size="2">Other benefits essentially concern the
supplementary medical reserve for Eni managers (FISDE) and
jubilee awards. Liability and costs related to FISDE are
calculated on the basis of the contributions paid by the company
for the retired managers. Jubilee awards are benefits due
following the attainment of a minimum period of service and,
regarding to the Italian companies, they consist of a
remuneration in kind.</font></p>

<p><font size="2">The value of employee benefits for the periods
indicated consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="51%">&nbsp;</td>
        <td align="center" valign="bottom" width="29%"><font
        size="1"><strong>Foreign pension plans</strong></font></td>
        <td valign="bottom" width="20%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="51%">&nbsp;</td>
        <td align="center" valign="bottom" width="29%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="20%">&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%"><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"><strong>TFR</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Gross liability</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Plan assets</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Net liability</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other benefits</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2"><b>Dec. 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>
        <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="40%"><font size="2"><b>Current
        value of benefit obligation at beginning of year</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>521</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="2"><b>483</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="2"><b>(224</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>259</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="2"><b>130</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="2"><b>910</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Current cost</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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">&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="2">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="2">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="2">74</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Interest
        cost</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">25</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="2">25</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%"><p align="right"><font
        size="2">25</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="2">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="2">56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Expected return on plan assets</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="2">(14</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(14</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="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="2">(14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Contributions
        paid</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="2">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="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(20</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="2">(20</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Actuarial gains/losses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">46</font></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="2">(7</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="2">76</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Benefits
        paid</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(18</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">(7</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="8%"><p align="right"><font
        size="2">(68</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Amendments</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="2">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="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="2">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="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="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Exchange
        rate differences and other changes</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="2">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="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">9</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%"><p align="right"><font
        size="2">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><strong>Current value of benefit obligation at
        end of year</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>577</strong></font></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="2"><strong>576</strong></font></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="2"><strong>(257</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>319</strong></font></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="2"><strong>138</strong></font></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="2"><strong>1.034</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Dec.
        31, 2005</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Current value of benefit obligation at
        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="2"><b>577</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(257</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>319</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1.034</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Current
        cost</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">59</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="2">18</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%"><p align="right"><font
        size="2">18</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="2">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="2">82</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Interest cost</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="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="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Expected
        return on plan 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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Contributions paid</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(46</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(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="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="2">(45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Actuarial
        gains/losses</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">47</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="2">66</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="2">(24</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">42</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="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Benefits paid</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(49</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(19</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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(10</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Amendments</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="2">3</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%"><p align="right"><font
        size="2">3</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%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Economic effect of curtailment or settlement of
        the plan</font></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>
        <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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5</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="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="2">(5</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="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="2">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Exchange
        rate differences and other changes</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="2">87</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="2">(27</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">60</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%"><p align="right"><font
        size="2">60</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Current value of benefit obligation at 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="2"><b>653</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="2"><b>757</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="2"><b>(359</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>398</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="2"><b>133</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="2"><b>1,184</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Gross liability relating foreign pension plans
of euro 757 million (euro 576 million at December 31, 2004)
includes pension plans with no plan assets for euro 180 million
(euro 166 million at December 31, 2004).</font></p>

<p><font size="2">Current value of benefit obligation of foreign
pension plans includes liabilities of joint ventures operating in
exploration and production activities.</font></p>

<p><font size="2">Current value of the obligation relating other
benefits of euro 133 million (euro 138 million at December 31,
2004) concern primarily FISDE for euro 96 million and jubilee
awards for euro 29 million (euro 106 million and euro 26 million
at December 31, 2004, respectively). </font></p>

<p><font size="2">Reconciliation of net liabilities for benefits
recorded in the balance sheets was as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><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"><strong>TFR</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Foreign pension plans</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other benefits</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Dec.
        31, 2004</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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Current value of the benefit obligation</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>577</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="2"><b>319</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,034</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Actuarial
        gains/losses not recognized</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(18</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(7</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(41</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">Past service cost not recognized</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="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="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="2">(11</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>Provisions
        for employee benefits</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>559</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="2"><b>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="2"><b>131</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="2"><b>982</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Dec. 31, 2005</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Current
        value of the benefit obligation</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>653</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="2"><b>398</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="2"><b>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="2"><b>1,184 </b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Actuarial gains/losses not recognized</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(76</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(71</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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(144</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">Past
        service cost not recognized</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="2">(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="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="2">(9</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"><b>Provisions for employee benefits</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>577</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>136</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="2"><b>1,031</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Fund for employee benefits of foreign pensions
plan of euro 318 million (euro 292 million at December 31, 2004)
includes liabilities of joint ventures operating in exploration
and production activities for euro 95 million and euro 130
million at December 31, 2004 and 2005, respectively; a receivable
was recorded against such liability.</font></p>

<p><font size="2">Fund for other benefits of euro 136 million
(euro 131 million at December 31, 2004) concern primarily FISDE
for euro 99 million and jubilee awards for euro 29 million (euro
99 million and euro 26 million at December 31, 2004,
respectively).</font></p>

<p><font size="2">Costs for employee benefits recorded in the
profit and loss account consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><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"><strong>TFR</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Foreign pension plans</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other benefits</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Current
        cost</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">54</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="2">17</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="2">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="2">74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Interest cost</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Expected
        return rate on plan 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%"><p align="right"><font
        size="2">(14</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="2">(14</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">Amortization of past service cost</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="2">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="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="2">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Amortization
        of actuarial gains/losses</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="2">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="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total cost</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>79</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="2"><b>29</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="2"><b>10</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="2"><b>118</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>2005</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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2">Current cost</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">59</font></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="2">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="2">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="2">82</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Interest
        cost</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">25</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="2">30</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="2">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="2">61</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Expected return rate on plan assets</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="2">(16</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="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="2">(16</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">Amortization
        of past service cost</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="2">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="2">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="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Amortization of actuarial gains/losses</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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Economic
        effect of curtailment or settlement of the plan</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(11</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"><b>Total cost</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>78</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="2"><b>31</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="2"><b>17</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="2"><b>126</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Costs for other benefits of euro 17 million
(euro 10 million at December 31, 2004) concern FISDE for euro 7
million and jubilee awards for euro 7 million (euro 6 million and
euro 3 million at December 31, 2004, respectively).</font></p>

<p><font size="2">Principal actuarial assumptions used for the
valuation of employee benefits consisted 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">(%)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>TFR</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Foreign pension plans</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other benefits</strong></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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>2004</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="2"><b>Principal actuarial assumptions</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="2">Discount
        rate</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4.5</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="2">6.0-7.9</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="2">4.0-5.0</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Rate of compensation increase</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.7-4.5</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="2">3.0-6.8</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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Expected
        return rate on plan 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%"><p align="right"><font
        size="2">7.0</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="2">Rate of price inflation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.0-4.6</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="2">2.0-2.3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2"><b>2005</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="2"><b>Principal actuarial assumptions</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="2">Discount
        rate</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4.0</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="2">4.5-7.3</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="2">4.5-4.7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">Rate of compensation increase</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.7-4.5</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="2">3.0-5.8</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="2">3.5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">Expected
        return rate on plan 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%"><p align="right"><font
        size="2">7.2</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="2">Rate of price inflation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.0</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="2">2.0-4.9</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.3-2.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">Foreign plan assets consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Plan assets</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Expected return</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Dec.
        31, 2005</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50.2</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="2">7.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Bonds</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">35.0</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="2">4.9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Investment property</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13.1</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="2">10.5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Total</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>100.0</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>
</table>
</center></div>

<p><b><br>
21 Deferred tax liabilities</b></p>

<p><font size="2">Deferred tax liabilities of euro 4,890 million
(euro 3,948 million at December 31, 2004) are net of deferred tax
assets for which Eni possesses the legal right of offset.</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="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Exchange rate differences</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,948</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,136</font></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="2">(484</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">331</font></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="2">(1,041</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,890</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">Other changes of euro 1,041 million primarily
concern the set-off, for each company, of tax assets and deferred
tax liabilities (euro 1,035 million). Such change has been
partially offset by provisions to the reserves of the
shareholders&#146; equity following the first application of IAS
32 and 39 (euro 50 million) and valuation at fair value of
financial instruments (euro 2 million).</font></p>

<p><font size="2">Deferred tax liabilities consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Deferred income taxes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,002</font></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="2">8,237</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Deferred
        income taxes available to be offset</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,054</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,347</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>3,948</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,890</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Deferred
        income taxes not available to be offset</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,827</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,861</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net deferred tax liabilities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,121</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="2"><b>3,029</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The most significant temporary differences
giving rise to net deferred tax liabilities were 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="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Additions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Deductions</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Exchange rate differences</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Other changes</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Value at Dec. 31, 2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">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>
        <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="40%"><font size="2">-
        accelerated tax depreciation on fixed assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,885</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="2">1,378</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="2">(235</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">274</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="2">553</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="2">5,855</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- application of the weighted average cost
        method in evaluation of inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">300</font></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="2">351</font></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="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="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="2">649</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- site
        restoration and abandonment (fixed assets)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">104</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="2">234</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="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="8%"><p align="right"><font
        size="2">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="2">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="2">349</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- capitalized interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">219</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(12</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="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="2">26</font></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="2">245</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,494</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="2">161</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="2">(200</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">49</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="2">(365</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,139</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" 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"><b>6,002</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="2"><b>2,136</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="2"><b>(484</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,237</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">- assets revaluation as per Law 342/2000 and
        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="2">(1,177</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="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="2">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="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="2">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="2">(1,038</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- site
        restoration and abandonment (provisions for
        contingencies)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(870</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(355</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">130</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="2">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">(1,096</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- non 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="2">(324</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(401</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(77</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(244</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(868</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- accruals
        for doubtful accounts and provisions for contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(513</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(487</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">159</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%"><p align="right"><font
        size="2">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="2">(839</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- 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="2">(102</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(59</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58</font></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="2">(15</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(42</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(160</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">- other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="8%"><p align="right"><font
        size="2">(476</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">323</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="2">(29</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(130</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,207</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" 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"><b>(3,881</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,778</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>927</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="2"><b>(158</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(318</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(5,208</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><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="2"><b>2,121</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="2"><b>358</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="2"><b>443</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="2"><b>173</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="2"><b>(66</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>3,029</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Deferred tax assets are recognized to the
extent that expected future fiscal profits are considered
sufficient for the utilization of these assets.</font></p>

<p><font size="2">No deferred tax liabilities have been
recognized in relation to the reserves of consolidated
subsidiaries because such reserves are not expected to be
distributed (euro 269 million).</font></p>

<p><font size="2">Under the Italian fiscal laws, tax losses can
be carried forward in the five subsequent periods, excepting
losses suffered in the first three periods of life of the company
that can be carried forward without limit. Tax losses of foreign
companies can be carry forward on average for more than five
periods and for a considerable part can be carried forward
without limit. Tax recover correspond to a tax rate of 33% for
Italian companies and to an average tax rate of 30% for foreign
companies.</font></p>

<p><font size="2">Tax losses amount to euro 1,818 million and can
be used in the following periods:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Italian<br>
        companies</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Foreign<br>
        companies</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">2006</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="2">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">2007</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="2">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">2008</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">2009</font></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>
        <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="2">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">2010</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="2">46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Over 2010</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="2">234</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Without
        limit</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="2">1,393</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="2"><b>19</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="2"><b>1,799</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Tax losses for which is expected the
utilization amount to euro 547 million and essentially concern
foreign companies (euro 536 million); the relevant deferred tax
assets amount to euro 160 million, of which euro 158 million
concern foreign companies.<br>
</font></p>

<p><b>22 Other non-current liabilities</b></p>

<p><font size="2">Other non-current liabilities of euro 897
million (euro 427 million at December 31, 2004) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Income tax
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">23</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="80%" bgcolor="#EEEEEE"><font
        size="2">Other payables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">767</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">200</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="2">130</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="2"><b>427</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="2"><b>897</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Other payables of euro 767 million (euro 204
million at December 31, 2004) concern payables related to capital
expenditures for euro 597 million.</font></p>

<p><font size="2">Other liabilities at December 31, 2004 of euro
200 million include the fair value of fixed interest rate
financial liabilities of Lasmo Plc (now Eni Lasmo Plc) for euro 2
million.<br>
</font></p>

<p><b>23 Shareholders&#146; equity</b></p>

<p><font size="2"><b>Minority interest</b></font></p>

<p><font size="2">Minority interest in profit and
shareholders&#146; equity relate to the following consolidated
subsidiaries:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Net profit</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Shareholders&#146;
        equity</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2005</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Snam Rete Gas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">331</font></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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,025</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,158</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Saipem SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">133</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="2">115</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="2">846</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="2">915</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Tig&#225;z Tisz&#225;nt&#250;li G&#225;zszolg&#225;ltat&#243;
        R&#233;szv&#233;nyt&#225;rsas&#225;g</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">78</font></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="2">82</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Others</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">14</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="2">17</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="2">217</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="2">194</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>482</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="2"><b>459</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="2"><b>3,166</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,349</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The decrease in the shareholders&#146; equity
of Snam Rete Gas SpA of euro 867 million concern the distribution
of an extraordinary dividend of which euro 1,171 million was paid
to minority interest.</font></p>

<p><font size="2"><strong>Eni shareholders&#146; equity</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Value at Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Value at Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Share
        capital</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4,004</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="2">4,005</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Legal reserve</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">959</font></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="2">959</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Cumulative
        translation adjustment reserve</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(687</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">941</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Reserve for treasury shares</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,392</font></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="2">5,345</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Treasury
        shares</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,216</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other reserves</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,965</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,351</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Retained
        earnings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">14,911</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="2">17,381</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Net profit for the period</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,059</font></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="2">8,788</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Interim
        dividend</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="2">(1,686</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>32,374</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>36,868</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Share capital</b></font></p>

<p><font size="2">At December 31, 2005 Eni SpA had 4,005,358,876
shares (nominal value euro 1 each) fully paid-up (4,004,424,476
shares at December 31, 2004). The increase concerns the issuing
under the stock grant plan of 934,400 shares with a nominal value
of euro 1 each subscribed by managers following the expiration of
the plan issued in 2002 (883,300 shares) and the agreed
termination of employment (51,100 shares). On May 27, 2005
Eni&#146;s Shareholders Meeting decided a dividend distribution
of euro 0.90 per share, with the exclusion of treasury shares.
The cash dividend was made available for payment on June 23, 2005
and the ex-dividend date was June 20, 2005.</font></p>

<p><font size="2"><b>Legal reserve</b></font></p>

<p><font size="2">The legal reserve of Eni SpA represents
earnings restricted from the payment of dividends pursuant to
Article 2430 of the Civil Code.</font></p>

<p><font size="2"><b>Cumulative translation adjustment reserve</b></font></p>

<p><font size="2">The cumulative translation adjustment reserve
represents exchange differences due to the translation of
financial statements prepared in currencies other than euro.</font></p>

<p><font size="2"><b>Reserve for treasury shares</b></font></p>

<p><font size="2">The reserve for treasury shares of euro 5,345
million (euro 5,392 million at December 31, 2004) contains
earnings destined to purchase shares in accordance with the
decisions of Eni&#146;s Shareholders&#146; Meetings. The decrease
of euro 47 million concern the sale and the grant of treasury
shares to the Group managers following the stock option and stock
grant plans.</font></p>

<p><font size="2"><b>Treasury shares</b></font></p>

<p><font size="2">Treasury shares amount to euro 4,216 million
(euro 3,229 million at December 31, 2004) and consist of
278,013,975 ordinary shares nominal value euro 1 owned by Eni SpA
(234,394,888 ordinary shares nominal value euro 1 at December 31,
2004). Treasury shares of euro 237 million (euro 286 million at
December 31, 2004), are represented by 17,428,300 shares
(21,006,600 shares at December 31, 2004) and are destined to
2002-2004 and 2005 stock option plans (14,004,500 shares) and
2003-2005 stock grant plans (3,423,800 shares). The decrease of
3,578,300 shares consisted 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="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><strong>Stock option</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><strong>Stock grant</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </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="2"><b>Number of shares at December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14,574,000</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,432,600</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>21,006,600</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="2">-
        reclassifications <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">2,658,400</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(2,658,400</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" 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="2"><b>17,232,400</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,774,200</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>21,006,600</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="2">- rights
        exercised</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(3,106,400</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(339,100</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(3,445,500</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="2">- rights cancelled</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(121,500</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(11,300</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(132,800</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>(3,227,900</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>(350,400</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>(3,578,300</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="2"><b>Number of shares at December 31, 2005</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14,004,500</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,423,800</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17,428,300</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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">The
        reclassifications have been decided in accordance with
        the decision of Eni&#146;s Shareholders&#146; Meeting of
        May 27, 2005.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">At December 31, 2005 options and grants
outstanding were 13,379,600 shares and 3,127,200 shares,
respectively. Options refer to the 2002 stock plan for 903,100
shares with an exercise price of euro 15.216 per share, to the
2003 stock plan for 4,106,500 shares with an exercise price of
euro 13.743 per share, to the 2004 stock plan for 3,659,000
shares with an exercise price of euro 16.576 per share and to the
2005 stock plan for 4,711,000 shares with an exercise price of
euro 22.512 per share.</font></p>

<p><font size="2"><b>Other reserves</b></font></p>

<p><font size="2">Other reserves of euro 5,351 million (euro
3,965 million at December 31, 2004) refer to Eni distributable
reserve for euro 5,219 million (euro 3,896 million at December
31, 2004) and for euro 35 million to the reserve for the
valuation at fair value of securities available for sale and cash
flow hedge derivatives. The increase of Eni distribuitable
reserve of euro 1,323 million primarily concern the destination
of the residual income for 2004 (euro 1,300 million), in
accordance with the decisions of Eni&#146;s Shareholders&#146;
Meetings of May 27, 2005. The valuation at fair value of
securities available for sale and cash flow hedge derivatives
consists of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Securities available for sale</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Cash flow hedge derivatives</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><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>Gross reserve</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Deferred tax liabilities</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Net reserve</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><font
        size="1"><b>Gross reserve</b></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><font
        size="1"><b>Deferred tax liabilities</b></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Net reserve</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Gross reserve</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Deferred tax liabilities</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Net reserve</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="7%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="28%" bgcolor="#EEEEEE"><font
        size="2">Reserve as of January 1, 2005</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19</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</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</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">&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="2">19</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</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="28%"><font size="2">Changes of
        the year</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">8</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">(2</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">6</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">27</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">(11</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">16</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">35</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">(13</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">22</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="28%" bgcolor="#EEEEEE"><font
        size="2"><strong>Reserve as of December 1, 2005</strong></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>27</strong></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"><strong>(8</strong></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="2"><strong>)</strong></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>19</strong></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"><strong>27</strong></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"><strong>(11</strong></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="2"><strong>)</strong></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>16</strong></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"><strong>54</strong></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"><strong>(19</strong></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="2"><strong>)</strong></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>35</strong></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Interim dividend</b></font></p>

<p><font size="2">Interim dividend of euro 1,686 million
concerned the interim dividend for the year 2005 for euro 0.45
per share, with the exclusion of treasury shares, as decided by
Eni&#146;s Shareholders&#146; Meetings in accordance with article
2433-bis, paragraph 5 of the Italian Civil Code; the dividend was
paid on October 27, 2005.</font></p>

<p><font size="2"><b>Distributable reserves</b></font></p>

<p><font size="2">At December 31, 2005 Eni shareholders&#146;
equity included distributable reserves for approximately euro
36,000 million, a portion of which is subjected to taxation upon
distribution. Deferred tax liabilities have been recorded in
relation to the reserves expected to be distributed (euro 32
million).</font></p>

<p><font size="2"><strong>Reconciliation of statutory net profit
and shareholders&#146; equity to consolidated net profit and
shareholders&#146; equity</strong></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Net profit</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="19%" height="16"><p
        align="center"><font size="1"><b>Shareholders&#146;
        equity</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2005</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Dec. 31, 2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>As
        recorded in Eni SpA&#146;s financial statements (Italian
        GAAP)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>4,684</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="2"><b>5,288</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="2"><b>29,433</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="2"><b>29,656</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Treasury shares</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="2">(3,229</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,216</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">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%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4,444</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="2">2,718</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="2">9,470</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="2">13,483</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Consolidation adjustments:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        difference between cost and underlying value of equity</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(112</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,592</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="2">2,558</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- elimination of tax adjustments and compliance
        with accounting policies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,197</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,617</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(244</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">313</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        elimination of unrealized intercompany profits</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(235</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(40</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,498</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,677</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">- 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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(313</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(133</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">345</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="2">21</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="2">149</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="2">98</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,541</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="2"><b>9,247</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="2"><b>35,540</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="2"><b>39,217</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Minority
        interest</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(482</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(459</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,166</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,349</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"><b>As recorded in Consolidated Financial
        Statements (IFRS)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059</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="2"><b>8,788</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="2"><b>32,374</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>36,868</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p><b>24 Guarantees, commitments and risks</b></p>

<p><font size="2"><b>Guarantees</b></font></p>

<p><font size="2">Guarantees of euro 12,862 million (euro 12,667
million at December 31, 2004) consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="44%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="27%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="27%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="44%"><p align="left"><font
        size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Unsecured guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Other guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Secured guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Unsecured guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Other guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Secured guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">Consolidated companies</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,228</font></p>
        </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"><p
        align="right"><font size="2">3,228</font></p>
        </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"><p
        align="right"><font size="2">5,839</font></p>
        </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"><p
        align="right"><font size="2">5,839</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">Unconsolidated
        subsidiaries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">532</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%"><p align="right"><font
        size="2">539</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="6%"><p align="right"><font
        size="2">203</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%"><p align="right"><font
        size="2">207</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" bgcolor="#EEEEEE"><font
        size="2">Affiliated companies and Joint Ventures</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,901</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,863</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,900</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,772</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,712</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%"><font size="2">Others</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">70</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">169</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%"><p align="right"><font
        size="2">239</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">64</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">40</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%"><p align="right"><font
        size="2">104</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="44%" 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"><strong>4,978</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>5,851</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>40</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>10,869</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>4,968</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>7,854</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>40</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>12,862</strong></font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Guarantees given on behalf of consolidated
companies of euro 5,839 million (euro 5,026 million at December
31, 2004) consist primarily of: (i) guarantees given to third
parties relating to bid bonds and performance bonds for euro
3,057 million (euro 2,929 million at December 31, 2004), of which
euro 2,397 million related to the Oilfield Services Construction
and Engineering segment (euro 2,296 million at December 31,
2004); (ii) VAT recoverable from tax authorities for euro 1,386
million (euro 1,156 million at December 31, 2004); and (iii)
insurance risk for euro 298 million reinsured by Eni (euro 396
million at December 31, 2004). At December 31, 2005 the
underlying commitment covered by such guarantees was euro 5,491
million (euro 4,818 million at December 31, 2004).</font></p>

<p><font size="2">Unsecured guarantees, other guarantees and
secured guarantees given on behalf of unconsolidated subsidiaries
of euro 207 million (euro 539 million at December 31, 2004)
consisted of unsecured guarantees and letters of patronage given
to commissioning entities relating to bid bonds and performance
bonds for euro 165 million (euro 144 million at December 31,
2004). The decrease of euro 332 million essentially concerned the
reclassification to consolidated subsidiaries of the guarantees
given on behalf of Eni Middle East BV (euro 367 million at
December 31, 2004). At December 31, 2005, the underlying
commitment covered by such guarantees was euro 145 million (euro
467 million at December 31, 2004).</font></p>

<p><font size="2">Unsecured guarantees, other guarantees and
secured guarantees given on behalf of joint ventures and
affiliated companies of euro 6,712 million (euro 6,863 million at
December 31, 2004) primarily concerned: (i) a guarantee of euro
4,894 million (the same amount as of December 31, 2004) given by
Eni SpA to Treno Alta Velocit&#224; - TAV - SpA for the proper and
timely completion of a project relating to the Milano-Bologna
train link by the Consorzio Eni per l&#146;Alta Velocit&#224; - Cepav
Uno (Eni 50.4%); consortium members, excluding unconsolidated
subsidiaries, gave Eni liability of surety letters and bank
guarantees amounting to 10% of their respective portion of the
work; (ii)&nbsp;unsecured guarantees, letters of patronage and
other given to banks in relation to loans and lines of credit
received for euro 1,360 million (euro 1,633 million at December
31, 2004), of which euro 844 million related to a contract
released by Snam SpA (now merged into Eni SpA) on behalf of Blue
Stream Pipeline Co BV (Eni 50%) to a consortium of financing
institutions (euro 731 million at December 31, 2004). The
decrease of euro 273 million primarily concerned the
extinguishing of a guarantee of euro 250 million given on behalf
of EnBW - Eni Verwaltungsgesellschaft mbH (Eni 50%) and Albacom
SpA (euro 88 million), partially offset by the increase of the
guarantee given on behalf of Blue Stream Pipeline Co BV (euro 113
million); (iii) unsecured guarantees, letters of patronage and
other given to commissioning entities relating to bid bonds and
performance bonds for euro 274 million (euro 118 million at
December 31, 2004). The increase of euro 156 million essentially
regarded guarantees on behalf of the Oilfield Services
Construction and Engineering segment; (iv) performance guarantees
of euro 62 million given on behalf of Uni&#243;n Fenosa SA and Uni&#243;n
Fenosa Gas SA (Eni 50%) in relation to contractual commitments
related to the results of operations of subsidiaries of Uni&#243;n
Fenosa Gas SA (euro 111 million at December 31, 2004); and (v)
secured guarantees of euro 40 million (the same amount as of
December 31, 2004), relate to mortgages, liens and privileges
granted to banks in connection with loans. At December 31, 2005,
the underlying commitment covered by such guarantees was euro
2,938 million (euro 3,500 million at December 31, 2004).</font></p>

<p><font size="2">Other guarantees given on behalf of third
parties of euro 104 million (euro 239 million at December 31,
2004) consist primarily of guarantees given by Eni SpA to banks
and other financing institutions in relation to loans and lines
of credit for euro 92 million on behalf of minor investments or
companies sold (euro 160 million at December 31, 2004). At
December 31, 2005 the underlying commitment covered by such
guarantees was euro 75 million (euro 103 million at December 31,
2004).</font></p>

<p><font size="2"><b>Commitments and contingencies</b></font></p>

<p><font size="2">Commitments and contingencies euro 1,655
million (euro 1,620 million at December 31, 2004) consisted of
the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Commitments </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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Purchase
        of assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">200</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="2">219</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Sale of assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="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="2">Other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">220</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="2"><b>643</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="2"><b>439</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Risks</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>977</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="2"><b>1,216</b></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="2"><b>1,620</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="2"><b>1,655</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Obligations for purchases and sales of assets
of euro 219 million (euro 324 million at December 31, 2004)
concern securities for euro 116 million (euro 183 million at
December 31, 2004) and investments for euro 103 million (euro 141
million at December 31, 2004). Obligations relating to marketable
securities concern 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
received the rate of interest on such Italian Government bonds
and paid a floating rate of interest linked to Euribor. Such
investors could sell their securities back to Sofid Sim SpA at
any time at par value plus related interest with the simultaneous
cancellation of the related swaps. Against the commitment related
to interest rate swaps Sofid Sim SpA entered into derivatives for
which Sofid Sim SpA receives a variable rate more profitable than
the one renown by the shareholders. The operation ended on
January 1, 2006 following the expiry of the government bonds. The
decrease in obligations related to investments of euro 38 million
primarily concerns the exercise by Erg SpA of a call option for
the purchase of a 28% shares of Erg Raffinerie Mediterranee SpA
(euro 100 million) and the expiry of obligations for purchases
and sales of the shares of Nuovo Pignone SpA following the sale
of the investment (euro 31 million); such decrease was partially
offset by the obligation assumed by Eni SpA related to the
acquisition from ESPI - Ente Siciliano per la Promozione
Industriale (in liquidation) of 50% of the capital share of
Siciliana Gas SpA and 1 share of Siciliana Gas Vendite SpA (euro
98 million).</font></p>

<p><font size="2">Other commitments of euro 220 million (euro 319
million at December 31, 2004) are essentially related to 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 193 million in the future in connection with Eni&#146;s
development plan of oil fields in Val d&#146;Agri (euro 206
million at December 31, 2004). The agreements between Syndial SpA
and various government entities, employee and trade groups
whereby Syndial SpA, in order to further develop the chemical
segment and protect the environment with respect to the Porto
Marghera plant of euro 90 million at December 31, 2004, expired
following the subscription of a new agreement that determined a
specific provision.</font></p>

<p><font size="2">Risks of euro 1,216 million (euro 977 million
at December 31, 2004) primarily concern potential risks
associated with the value of assets of third parties under the
custody of Eni for euro 794 million (euro 551 million at December
31, 2004) and contractual assurances given to acquirors of
certain investments and businesses of Eni for euro 402 million
(euro 406 million at December 31, 2004).</font></p>

<p><font size="2"><b>Management of risks</b></font></p>

<p><font size="2"><i>Foreword</i></font></p>

<p><font size="2">The main risks identified and managed by Eni
were the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="2">(i) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="2">market risks
        deriving from the exposure to the fluctuations of
        interest rates, of exchange rates between the euro and
        the U.S. dollar and the other currencies used by the
        Company, as wells as the volatility of commodity prices;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">(ii)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="2">the credit
        risk deriving from the possible default of a
        counterparty;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">(iii)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="2">the liquidity
        risk deriving from the lack of financial resources to
        face short time commitments;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">(iv)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="2">the operation
        risk deriving from the occurrence of accidents,
        malfunctioning, failures with damage to persons and the
        environment affecting operating and financial results;
        and</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">(v)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="2">country risk
        in oil &amp; gas activities.</font></td>
    </tr>
</table>

<p><font size="2"><i>Market risk</i></font></p>

<p><font size="2">Market risks include exchange rate risk,
interest rate risk and commodity risk. Their management follows a
set of guidelines and procedures that concentrate the treasury
function in two captive finance companies operating in the
Italian and international financial markets.</font></p>

<p><font size="2">In particular, the financial company operating
on the domestic market (Enifin) manages all the transactions
concerning currency exchange and derivatives. The risk of
commodity prices is managed by each business unit while Enifin
manages the negotiation of hedging derivatives. In order to
minimize market risk related to changes in interest rates,
exchange rates and commodity prices, Eni enters into financial
and commodity hedging contracts for the purpose of reducing its
exposure to market risk. Eni does not enter into derivative
transactions on a speculative basis.</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. Eni&#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. 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">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.</font></p>

<p><font size="2">Eni&#146;s guidelines for the management of
commodity risk contain maximum limits to the price risk deriving
from trading activities. Directions in this area are entrusted to
a commodity risk assessment team, while the treasury department
controls the respect of said limits and the development and
updating of methodologies followed.</font></p>

<p><font size="2"><i>Exchange rate risk</i></font></p>

<p><font size="2">Exchange rate risk derives from the fact that
Eni&#146;s operations are conducted in currencies other than the
euro (in particular the U.S. dollar) and by the time lag existing
between the recording of costs and revenues denominated in
currencies other than the functional currency and their
realization (transaction exchange rate risk). An appreciation of
the U.S. dollar versus the euro generally has a positive impact
on Eni&#146;s results of operations.</font></p>

<p><font size="2"><i>Interest rate risk</i></font></p>

<p><font size="2">Variations in interest rates affect the market
value of assets and liabilities of the company and its net
borrowings.</font></p>

<p><font size="2"><i>Commodity risk</i></font></p>

<p><font size="2">Eni&#146;s results of operations are affected
by changes in the prices of products and services sold. A
decrease in oil prices generally has a negative impact on
Eni&#146;s results of operations and vice versa.</font></p>

<p><font size="2"><i>Credit risk</i></font></p>

<p><font size="2">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. Eni&#146;s financial companies follow
guidelines approved by Eni&#146;s treasury department on the
choice of highly credit-rated counterparties in their use of
financial and commodity instruments, including derivatives. Eni
has not experienced material non-performance by any counterparty.
As of December 31, 2005 Eni had no significant concentrations of
credit risk.</font></p>

<p><font size="2"><i>Liquidity risk</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2"><i>Operation risks</i></font></p>

<p><font size="2">Eni&#146;s activities present industrial and
environmental risks and are therefore subject to extensive
government regulations concerning environmental protection and
industrial security in most countries. For example, in Europe,
Eni operates industrial plants such as refineries and
petrochemical complexes that meet the criteria of the European
Union Seveso II directive for classification as high risk sites.</font></p>

<p><font size="2">The broad scope of Eni&#146;s activities
involves a wide range of operational risks such as those of
explosion, fire or leakage of toxic products, production of non
biodegradable waste.</font></p>

<p><font size="2">All these events could possibly damage or even
destroy wells as well as related equipment and other property,
cause injury or even death to persons or cause environmental
damage. In addition, since exploration and production activities
may take place on sites that are ecologically sensitive (tropical
forest, marine environment, etc.), each site requires a specific
approach to minimize the impact on the related ecosystem,
biodiversity and human health.</font></p>

<p><font size="2">Eni adopted the most stringent standards for
the evaluation and management of industrial and environmental
risks, complying with local and international rules and
standards. Business units evaluate through specific procedures
the related industrial and environmental risks in addition to
taking account the regulatory requirements of the countries where
these activities are located.</font></p>

<p><font size="2">Since 2003, Eni has introduced a model of
management system, a general procedure to be applied in all its
operating sites, based on an annual cycle of planning,
implementation, control, review of results and definition of new
objectives. The model is directed towards the prevention of
risks, the systematic monitoring and control of HSE performance
in a continuous improvement cycle subject also to audits by
internal and independent experts. At December 31, 2005 six system
audits had been performed and four are planned for 2006.</font></p>

<p><font size="2">Any environmental emergency is managed by
business units locally with their own organization under preset
reaction plans to foreseeable events aimed at limiting damage and
at activating adequate responses.</font></p>

<p><font size="2">Eni has two emergency rooms (at Milan and Rome)
provided with real time monitoring systems for the collection of
data on georeferenced maps for all Eni sites and logistics
worldwide. In addition to its own emergency teams, Eni entered
agreements with international agencies in order to maximize its
ability to react in all its operating sites.</font></p>

<p><font size="2">At year end 2005 Eni employed over 2,000 full
time equivalent employees in HSE activities, prevention of
environmental risk, safety and health.</font></p>

<p><font size="2"><i>Country risk</i></font></p>

<p><font size="2">Substantial portions of Eni&#146;s hydrocarbon
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.</font></p>

<p><font size="2">At December 31, 2005, approximately 73% of
Eni&#146;s proved hydrocarbon reserves were located in such
countries. Similarly, a substantial portion of Eni&#146;s natural
gas supply comes from countries outside the EU and North America.
In 2005, approximately 60% of Eni&#146;s domestic supply of
natural gas came from such countries. Negative developments in
the economic and political framework of these countries can
compromise temporarily or permanently Eni&#146;s ability to
operate economically and to have access to said reserves.</font></p>

<p><font size="2">Eni monitors constantly the political, social
and economic risk of the approximately 100 countries where it
invested or intends to invest with special attention to the
evaluation of upstream investments. Country risks are mitigated
by means of appropriate guidelines for risk management that Eni
defined in its procedure for project risk assessment and
management.<br>
</font></p>

<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 provisions, 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 can not be
estimated reliably.</font></p>

<p><font size="2"><b>Environment</b></font></p>

<p><font size="2">ENI SPA<br>
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&#146;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). Three environmental
organizations act as plaintiffs and requested damage payment for
euro 551 million. Two of these organizations are also acting
against the Gela refinery.</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 that have occurred since 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. Some
local public entities, environmental NGOs and landowners are
acting as plaintiffs. On January 17, 2005, a second inquiry phase
aimed at ascertaining which sort of emissions had eventually
produced the alleged pollution caused by the refinery of Gela,
was completed. On February 3, 2006 the notice of the conclusion
of preliminary investigations was filed conclusion of the
preliminary inquiry.</font></p>

<p><font size="2">In June 2002, in connection with a fire in the
refinery of Gela, a criminal investigation began concerning
arson, environmental crimes and crimes against natural heritage.
On May 12, 2004 the first hearing was held. </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. The investigation concerns the environmental rules
about the pollution of water and soil and illegal disposal of
liquid and solid waste materials. On November 7, 2003 the judge
for preliminary investigations accepted to continue the inquiries
as requested by the public prosecutor 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. With a decision of
November 3, 2003, the Court for preliminary investigation, in
agreement with a request of the public prosecutor of Gela,
ordered the preventive seizure of 92 storage tanks, later
reopened except for nine tanks that remained under seizure but do
not prevent full operations at the refinery. The report filed by
experts of the public prosecutor is currently under review.</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. A qualified company has been given the task
to verify the cause, the origin and the extension of the alleged
infiltration. For protective purposes, actions have been taken
to: (i) create safety measures and clean-up all of the polluted
area; (ii)&nbsp;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. The report of experts
has been filed and its findings can be opposed to defendants.</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 Court of Cassation confirmed this decision. 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. On May 11, 2006 the Court of Rovigo accepted as
plaintiffs the Veneto Region, the Ente Parco della Provincia del
Po, the Ferrara Province, the Venice Province, the city of
Venice, the city of Comacchio, the Rovigo Province and two
private entities. Eni was accepted as a defendant. The Court of
Rovigo rejected the accusation of environmental disaster and
therefore transferred the proceeding to the Court of Adria, where
the first hearing has been scheduled for October 31, 2006.</font></p>

<p><font size="2">ENIPOWER SPA<br>
In autumn 2004 the Public Prosecutor of Rovigo started an
investigation for alleged crimes related to unauthorized waste
management activities in Loreo relating to samples of the soil
used in the construction of the new EniPower&#146;s power station
in Mantova. EniPower requested the closing of the investigation.</font></p>

<p><font size="2">POLIMERI EUROPA SPA<br>
Before the Court of Gela one criminal action took place relation
to the alleged violation on part of Eni of environmental
regulations on waste management concerning the ACN plant and the
disposal of FOK residue deriving from the steam cracking process.
The defendant was found guilty and a damage payment in first
instance was recognized to an environmental association acting as
plaintiff. The sentence was passed to the civil court for the
quantification of any further damage and claim. Eni appealed the
Court&#146;s decision. </font></p>

<p><font size="2">SYNDIAL SPA (FORMER ENICHEM SPA)<br>
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. Edison agreed on a settlement
that quantified damage to be paid covering also Syndial. The
proceeding continues for the alleged damage in the 1989-1990
period.</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 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 for
the dismissal of the case in respect of the employees and the
managers of EniChem. Plaintiffs presented oppositions while the
prosecutor confirmed his request for dismissal of the case.</font></p>

<p><font size="2">On December 18, 2002 EniChem SpA, jointly with
Ambiente SpA (now merged in Syndial SpA) and European Vinyls
Corporation Italia SpA, was summoned before the Court of Venice
by the Province of Venice. The province requested compensation
for environmental damages, 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. The
final judgment is pending.</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, will act as plaintiffs. The
collection of evidence effected before the hearing starts in
Court has been concluded and preliminary investigations have
ended with the confirmation of accusations. During the inquiries
traces of mercury were found in the sea. The Public Prosecutor of
Siracusa started an inquiry for ascertaining the conditions of
sediments and marine fauna in the bay of Augusta. According to
the plaintiffs, mercury would have been spilled into the sea and
poisoned the marine fauna and therefore resulted in fetal
malformations and abortions due to the consumption of
contaminated seafood fished in this area. The chlorine soda
plant, built in the late 50s was conferred to Syndial in 1989
when the Enimont joint venture was formed. It was therefore easy
to prove that Eni holds no responsibility for the crimes it was
accused of. On March 15, 2006 the judge for preliminary
investigations decided the dismissal of the case against Syndial
employees.</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 approximately
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 Province of Crotone entered the proceeding,
claiming environmental damages for euro 300 million. Technical
aspects concerning the role of the delegated commissioner make it
necessary to decide on this aspect. 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.</font></p>

<p><font size="2">On February 28, 2006 the Council of Ministers,
the Ministry for the Environment and the Delegated Commissioner
for environmental emergency in the Calabria Region represented by
the State Lawyer requested Syndial to appear before the Court of
Milan in order to obtain the ascertainment, quantification and
payment of damage (in the form of pollution of land, air and
water and therefore of the general condition of the population)
caused by the operations of Pertusola Sud SpA in the municipality
of Crotone and in surrounding municipalities. The local
authorities request the ascertainment of Syndial&#146;s
responsibility as concerns expenses borne and to be borne for the
cleanup and reclamation of sites, currently quantified at euro
129 million. This proceeding concerns the same company and
damages as indicated in the previous paragraph.</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.</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 March 1, 2006 the State Lawyer in an attempt
to settle the case proposed that Syndial pay 10% of the requested
damage corresponding to euro 239 million. This attempt to settle
failed.</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 that 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. The judge requested an expert
report to be prepared in order to ascertain what damage has been
remediated and what remains to be cleaned up after the
interventions started by Agricoltura and continued by
EniChem/Syndial. The expert report quantifies the damage still to
be remediated in euro 15 million. </font></p>

<p><font size="2"><b>Tax Proceedings</b></font></p>

<p><font size="2">ENI SPA<br>
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) should 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 was 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.</font></p>

<p><font size="2">With a formal assessment presented by the
municipality of Pineto (Teramo) Eni SpA has been accused of not
having paid a municipal tax on real estate for the period from
1993 to 1998 on four oil platforms located in the Adriatic Sea
territorial waters in front of the coast of Pineto. Eni has been
requested to pay a total of approximately euro 17 million also
including interest and a fine for lacking declaration. Eni filed
a claim against this request stating that the sea where the
platforms are located is not part of the municipal territory and
the application of the tax at requested by the municipality
lacked objective fundamentals. The claim has been accepted in the
first two degrees of judgment at the Provincial and Regional Tax
Commissions. But the Court of Cassation cancelled both judgments
declaring that a municipality can consider requesting a tax on
real estate also in the sea facing its territory and with a
decision of February 21, 2005 sent the proceeding to another
section of the Regional Tax Commission in order to judge on the
other reason opposed by Eni. On December 28, 2005 the
municipality of Pineto presented the same request for the same
platforms for the years 1999 to 2004. The total amount requested
to Eni is of euro 24 million. Eni filed a claim against this
request.</font></p>

<p><font size="2">AGIP KARACHAGANAK BV<br>
In July 2004 relevant Kazakh authorities informed Agip
Karachaganak BV and Agip Karachaganak Petroleum Operating BV,
shareholder and operator of the Karachaganak contract,
respectively, on 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 $43 million, net to Eni, and
the anticipated offsetting of VAT credits for $140 million, net
to Eni, as well as the payment of interest and penalties for a
total of $128 million. Both companies filed a counterclaim. With
an agreement reached on November 18, 2004, the original amounts
were reduced to $26 million net to Eni that includes taxes,
surcharges and interest. Meetings continue regarding residual
matters. Eni recorded a specific provision for this matter.</font></p>

<p><font size="2">SNAM RETE GAS SPA<br>
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.
With the ruling of December 20, 2002, the Court judged the tax at
variance with European rules. 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 with its opinion presented
on July 7, 2004 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, and confirmed on March 4, 2005 by the Regional Tax
Commission, 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. As for the seven remaining installments paid after
April 2002 (euro 75.3 million) the Provincial Tax Commission of
Palermo with decision of January 5, 2005 confirmed the
illegitimacy of the tax condemning the Region to repay the
amounts paid and interest accrued to Snam Rete Gas. The Sicilia
Region presented recourse to the Regional Tax Commission at
Palermo, a hearing has been scheduled for April 5, 2006. 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, confirmed
by the Regional Tax Commission on March 7, 2005. 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">SYNDIAL SPA (FORMER ENICHEM SPA) - SERFACTORING
SPA<br>
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
was set to be discussed in a hearing set for March 16, 2007 but
was rescheduled for October 27, 2006 upon request of
Agrifactoring. 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. Against this suspension Serfactoring and Syndial
requested to the Court of Cassation the cancellation of the
suspension and the return of the case to its original court.</font></p>

<p><font size="2">SYNDIAL SPA (FORMER ENICHEM SPA)<br>
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. With a
judgment of October 11, 2005 the Court rejected ICR&#146;s
request and order that ICR pay all expenses. ICR filed a claim
against this decision.</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">ENI SPA<br>
In March 1999, the Antitrust Authority concluded its
investigation started in 1997 and: (i) verified that Snam SpA
(merged in Eni SpA in 2002) abused its dominant position in the
market for the transportation and 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/EC, 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. On December 22, 2005, the
Authority notified the preliminary results of the inquiry
concerning: (i) information flows to oil companies related to the
functioning of shared storage and uploading companies; (ii)
barriers to the entrance of new competitors; and (iii) the price
of jet fuel is higher than on other European markets. On June 20,
2006, the Antitrust notified Eni the final decision of this
proceeding and fined Eni by an amount of euro 117 million. The
Antitrust fined other oil companies involved in the matter. Eni
is evaluating this decision in order to file a claim against it
decision before an administrative court.</font></p>

<p><font size="2">On April 28, 2005 the Commission of the
European Communities started a formal assessment to evaluate the
alleged participation of Eni and its subsidiaries to activities
limiting competition in the field of paraffin. The alleged
violation of competition would have consisted in: (i) the
determination of and increase in prices; (ii) the subdivision of
customers; (iii) exchange of trade secrets, such as production
capacity and sales volumes. On November 3, the Commission
requested information on Eni&#146;s activities in the field of
paraffins. On November 29, 2005 Eni filed the requested
information. On April 21, 2006 the Antitrust Authority requested
information on the processing of raw paraffin, which Eni supplied
in a letter dated May 25, 2006.</font></p>

<p><font size="2">The Department of Justice of the United States
of America - Antitrust Division, notified Eni Petroleum Co Inc of
a subpoena requesting information and documents relating to
activities in the field of wax to be filed before June 20, 2005.
The Company informed the department that it does not produce nor
import wax in the United States of America.</font></p>

<p><font size="2">POLIMERI EUROPA SPA AND SYNDIAL SPA<br>
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 from 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
the relevant charges to that effect on March 8, 2005. At a
hearing held on July 27, 2005 the two companies presented
memoranda and confirmed their position. The parties await for a
decision of the Commission.</font></p>

<p><font size="2">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. In July
2005 Syndial signed a settlement agreement for the civil class
action which entails the payment of approximately dollar 3.2
million, approved by the federal court.</font></p>

<p><font size="2">The investigation was also extended to the
following products: NBR, CR, BR, SSBR and SBR.</font></p>

<p><font size="2">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 two products the Commission started an infraction procedure
by notifying Eni, Polimeri Europa and Syndial the relevant
charges. The companies presented a written memorandum and the
Commission decided to open an inquiry, as a consequence of which
the Commission sent a new description of the charges. The
companies are preparing a new memorandum.</font></p>

<p><font size="2">With regard to NBR an inquiry is underway in
Europe and the USA, where class actions also have been started.
The class action at federal level was abandoned by the
plaintiffs. The federal judge acknowledged this abandonment. </font></p>

<p><font size="2">With regard to CR, as part of an investigation
carried out in the USA, Syndial entered into a plea agreement
with the Department of Justice pursuant to which Syndial would
agree to pay a fine of U.S. 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. On June 27, 2005 the plea agreement was approved. For
CR the civil class action was closed with a settlement agreement
approved by the federal judge on July 8, 2005 whereby the company
will pay dollar 5 million. The European Commission requested Eni,
Polimeri Europa and Syndial to provide information about CR. The
two companies decided to cooperate with the Commission.</font></p>

<p><font size="2">Eni recorded a provision for these matters.</font></p>

<p><font size="2">STOCCAGGI GAS ITALIA SPA<br>
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 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. Stogit filed an
appeal to the Council of State against the sentence which was
rejected by the Council of State on January 6, 2006.</font></p>

<p><font size="2">DISTRIBUIDORA DE GAS CUYANA SA<br>
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. On April 28,
2006, the Company filed a formal request for examining the
documents used as evidence of the alleged violation.</font></p>

<p><font size="2"><b>Settled Legal Proceedings</b></font></p>

<p><font size="2">In August 2005, the internal revenue service of
Venezuela served to Eni Daci&#243;n BV four formal assessment on
income taxes for the years 2001 to 2004 that, by excluding the
deductibility of certain costs: (i) annul the losses recorded for
the periods amounting to a total of bolivar 910 billion
(corresponding to $425 million); (ii)&nbsp;determine for the same
periods a taxable income amounting to a total of bolivar 115
billion (corresponding to $54 million); and (iii) request a tax
amounting to bolivar 52 billion (corresponding to $24 million)
determined by applying a 50% tax rate rather than the 34% rate
applied to other companies performing activities analogous to
those of Eni Daci&#243;n BV. In particular it excluded the
deductibility of: (i) interest charges due to other Eni Group
companies that provided loans denominated in U.S. dollars; and
(ii) exchange rate losses recorded in the Financial Statements
and related to such loans resulting from the devaluation of the
Venezuelan currency. The formal assessments served have a
preliminary nature and do not request immediate payment nor do
they specify the amount of a fine (from 10 to 250%) and of
interest (average rate for the period approximately 23%). Eni
Daci&#243;n filed a claim for the cancellation of the assessment. In
the 2005 accounts, Eni recorded a specific provision for this
matter. In April 2006 the appeal was rejected and the final tax
assessment was issued. The final tax assessment:
(i)&nbsp;substantially confirmed the preliminary assessments,
although reducing the originally assessed income tax liability to
bolivar 39 billion ($18 million); and (ii) imposed fines and late
payment interests of bolivar 109 billion ($51 million). Eni
Daci&#243;n BV presented a further administrative appeal before the
expiration of the time limit for filing a judicial tax appeal,
thereby obtaining a reduction of the overall amount from bolivar
148 billion ($69 million) to bolivar 52 billion ($24 million)
including taxes in the amount of bolivar 12.5 billion ($6
million) and fines and late payment interest in the amount of
bolivar 39.5 billion ($18 million). In order to avoid further
charges deriving from the increase of the corresponding fines and
late payment interest, Eni Daci&#243;n BV paid the newly assessed
amount in May 2006, thereby reaching a settlement. Consistently,
Eni Daci&#243;n BV filed an integrative income tax return for year
2005, considering the new tax bases for years 2001 to 2004, and
paid accordingly bolivar 128 billion ($60 million) of income
taxes and bolivar 4.4 billion ($2 million) of fines and late
payment interest.</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 did 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 was based on the fact that the company did
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 canceling the 147
formal assessments. On March 12, 2004 the Comando Nucleo
Regionale Polizia Tributaria 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. The notification was 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. On January 26, 2006 the judge for preliminary
investigation of the Court of Taranto dismissed the accusations
and closed the assessment.</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 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 that agreed to pay 13% of the remediation costs. The first
action promoted by Grifil before the Court of La Spezia remained
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 fulfill its obligation. The judge
closed the inquiry phase and stated that the judgment can be
brought to an end. 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. On September 6, 2005 Eni and Immobiliare
Helios SpA (that acquired all of Grifil&#146;s share capital)
reached a settlement that: (i) concluded all disputes outstanding
with Grifil and constitutes a waiver to any possible future claim
directly or indirectly related to the sale of the land parcel;
(ii) passed to the acquirer all residual expense to be incurred
for the reclamation of the land parcel with the explicit approval
of the municipality of La Spezia; (iii)&nbsp;provided for Eni to
pay to the new owner of Grifil a lump sum of euro 15.1 million
that will be paid when the new owner provides confirmation of
works performed for the reclamation; the sum is covered by
provisions in the risk reserve.</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.
Defendants included certain employees of Eni which has been
managing the Porto Marghera plant since the beginning of the
eighties. 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, 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. On May
19, 2006, the Court of final instance, before which plaintiffs
appealed the decision of the Court of Appeals, acquitted all
defendants stating that pollution and mismanagement of the plant
occurred before the eighties and consequently Eni and its
employees could not be deemed responsible for that. In January
2006 Eni settled this matter with the Council of Ministers and
the Ministry for the Environment paying an amount of euro 40
million. Under terms of the settlement, the latter will abstain
from the recourse to the Court of final instance and will not act
on any other environmental damage concerning the management of
Porto Marghera until the date of the settlement. Eni had already
recorded a provision for this matter which was sufficient to
cover the amount of the settlement.</font></p>

<p><font size="2"><b>Other commitments and risks not included in
the balance sheet</b></font></p>

<p><font size="2">Commitments regarding long-term natural gas
supply contracts stipulated by Eni, which contain take-or-pay
clauses, are included in &quot;Operating Review - Gas &amp;
Power&quot; in the Report of the Directors in the Consolidated
Financial Statement, which is considered an integral part of
these Notes.</font></p>

<p><font size="2">Parent company guarantees given relating to
contractual commitments for hydrocarbon exploration and
production activities, quantified on the basis of the capital
expenditures to be made, amount to euro 5,052 million (euro 3,192
million at December 31, 2004).</font></p>

<p><font size="2">With effective date April 1, 2006, the
Venezuelan State oil company Petr&#243;leos de Venezuela SA (PDVSA)
unilaterally terminated the service contract governing activities
at the Daci&#243;n oil field where Eni acted as a contractor, holding
a 100% working interest. As a consequence, starting on the same
day, operations at the Daci&#243;n oil field are conducted by PDVSA
which replaced Eni Daci&#243;n BV, Eni&#146;s wholly-owned subsidiary
that had been operating the field until that date.</font></p>

<p><font size="2">Eni believes that it is entitled to a market
value compensation for the expropriation of the Daci&#243;n field. On
these basis, Eni is available to reach an agreement with the
Venezuelan authorities. In case an amicable settlement is not
possible, Eni will take any other action in order to protect its
interest in Venezuela. Based on internal and external independent
evaluation, Eni is confident that a fair market compensation will
not be lower than the book value of the Daci&#243;n related assets.
Accordingly, management decided not to impair the book value of
Eni&#146;s Daci&#243;n assets. In 2005 and in the first quarter 2006,
the Daci&#243;n field production rate was about 60 KBBL/d. Management
expects Eni&#146;s proved reserves of hydrocarbons to be reduced
by an amount of approximately 175 mmBBL corresponding to
Eni&#146;s net proved reserves of the Daci&#243;n field as of
December 31, 2005 as a consequence of the loss of Eni&#146;s
title to the field.</font></p>

<p><font size="2">Under the convention signed on October 15, 2001
by TAV SpA and CEPAV Due, Eni committed to guarantee the
execution of design and construction of the works assigned to the
CEPAV Consortium (to which it is a party) and guaranteed to TAV
the correct and timely execution of all obligations indicated in
the convention in a subsequent integration deed and in any
further addendum or change or integration to the same. The
regulation of CEPAV Due contains the same obligations and
guarantees contained in the CEPAV Uno agreement.</font></p>

<p><font size="2">A guarantee for euro 282 million to Cameron LNG
provided on behalf of Eni USA Gas Marketing Llc (Eni&#146;s
interest 100%) for the regasification contract entered into on
August 1, 2005. This guarantee is subject to a suspension clause
and will come in force when the regasification service starts in
a period included between October 1, 2008 and June 30, 2009.</font></p>

<p><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></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, petrochemicals
plants, refineries, pipeline systems and other facilities that
Eni owns. In addition, Eni&#146;s operations are subject to laws
and regulations relating to the generation, handling,
transportation, storage, disposal and treatment of waste
materials. Environmental laws and regulations have a substantial
impact on Eni&#146;s operations. Some risk of environmental costs
and liabilities is inherent in particular operations and products
of Eni, as it is with other companies engaged in similar
businesses, and there can be no assurance that material costs and
liabilities will not be incurred. Although management,
considering the actions already taken with the insurance policies
to cover environmental risks and the provision for risks accrued,
does not currently expect any material adverse effect upon
Eni&#146;s Consolidated Financial Statements as a result of its
compliance with such laws and regulations, there can be no
assurance that there will not be a material adverse impact on
Eni&#146;s Consolidated Financial Statements due to: (i) the
possibility of as yet unknown contamination; (ii) the results of
the on-going surveys and the other possible effects of statements
required by Decree No. 471/1999 of the Ministry of Environment;
(iii) the possible effect of future environmental legislation and
rules, such as: (a) the decree of the Ministry of Environment No.
367 published on January 8, 2004, that regards the fixing of new
quality standards for aquatic environment and dangerous
substances and Legislative Decree No. 59/2005 concerning the
integrated environmental authorization (IPPC), (b) the
application of European directive 2004/35/EC concerning
environmental responsibility for prevention and reclamation of
environmental damage, referred to in paragraph 439 of the single
article of Law No. 266/2005 (budget law for 2006), (c) a
legislative decree to be issued in implementation of Law No. 308
of December 15, 2004 that delegated to the Government the
restructuring of regulations concerning waste disposal and
reclamation of polluted areas, protection of waters from
pollution and management of water resources, payment of
environmental damage, procedures for the evaluation of
environmental impact and for the strategic environmental impact
as well as protection from emission into the atmosphere within 18
months. The draft law approved by the Council of Ministers on
February 10, 2006 is currently being examined by the President of
the Republic. The also implements European directive 2000/60/EC
that established a European action framework for the protection
of waters; (iv) the effect of possible technological changes
relating to future remediation; and (v) the possibility of
litigation and the difficulty of determining Eni&#146;s
liability, if any, as against other potentially responsible
parties with respect to such litigation and the possible
insurance recoveries.</font></p>

<p><font size="2"><b>Emission trading</b></font></p>

<p><font size="2">Law No. 316 of December 30, 2004 converted Law
Decree No. 237/2004 implementing European directive 2003/87/EC
which established a system for emission trading. From January 1,
2005 this European emission trading scheme has been in force and
on this matter on February 24, 2006 the Ministry of the
Environment published a decree defining emission permits for the
2005-2007 period. In particular Eni was assigned permits
corresponding to 65.2 million tonnes of carbon dioxide (of which
22.4 for 2005, 21.4 for 2006 and 21.4 for 2007). In 2005
emissions of carbon dioxide from Eni&#146;s plants were lower
than permits assigned.<br>
</font></p>

<p><font size="2"><b>Subsequent events</b></font></p>

<p><font size="2">The main significant events that occurred after
the balance sheet date are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">On May 5,
        2006 the European Commission started an inquiry in order
        to verify an alleged abuse of dominant position on the
        part of Eni in violation of article 82 of the EEC Treaty
        and article 54 of the CES Agreement in the activities of
        international gas transport and wholesale and retail
        supply of gas. According to the European Commission Eni
        might have adopted commercial practices that constitute
        barriers to access to the Italian market for the
        wholesale supply of natural gas, in particular taking
        account of Eni long-term purchase contracts. In addition
        Eni also entered into long-term transport contracts which
        award Eni a majority share of transport capacity of
        certain international gaslines and, as a consequence, Eni
        may have prevented others access to infrastructure.<br>
        Officials from the European Commission have conducted
        inspections at Eni&#146;s headquarters and of certain of
        Eni&#146;s subsidiaries and collected documents.<br>
        If the existence of the alleged anti-competitive
        practices is confirmed, the European Commission could
        fine Eni.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="2">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">On May 25,
        2006, Eni&#146;s Annual General Shareholders Meeting
        approved a euro 2 billion increase in Eni&#146;s ongoing
        share repurchase program.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>25 Revenues</b></p>

<p><font size="2">The following is a summary of the main
components of &quot;Revenues&quot;. More information about
changes in revenues is included in the &quot;Financial
review&quot; of the &quot;Report of the Directors&quot;.</font></p>

<p><font size="2">Net sales from operations were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Net sales from operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">57,413</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">73,679</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Change in
        contract work in progress</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">132</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="2">49</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="2"><b>57,545</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="2"><b>73,728</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">Net sales from operations were net
of the following items:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Excise tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">14,060</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="2">14,140</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Exchanges of oil sales (excluding excise tax)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,735</font></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="2">2,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Exchanges
        of other products</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">86</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="2">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Services billed to joint venture partners </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,175</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,331</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Sales to
        service station managers for sales billed to holders of
        credit card</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,122</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="2">1,326</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="2"><b>18,178</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="2"><b>19,392</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Net sales from operations by industry segment
and geographic area of destination are presented in Note 31.</font></p>

<p><font size="2"><b>Other income and revenues</b></font></p>

<p><font size="2">Other income and revenues were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Contract
        penalties and other trade revenues</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">43</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="2">114</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Lease and rental income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">102</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Compensation
        for damages</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">87</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="2">89</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Gains from sale of assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">407</font></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="2">71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        proceeds <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">747</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="2">422</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="2"><b>1,377</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="2"><b>798</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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 25
        million.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">Other income of 2004 included differentials on
commodity derivatives for euro 61 million.<br>
</font></p>

<p><b>26 Operating expenses</b></p>

<p><font size="2">The following is a summary of the main
components of &quot;Operating expenses&quot;. More information
about changes in operating expenses is included in the
&quot;Financial review&quot; of the &quot;Report of the
Directors&quot;.</font></p>

<p><font size="2"><b>Purchases, services and other</b></font></p>

<p><font size="2">Purchases, services and other included the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Production costs-raw, ancillary and consumable
        materials and goods</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">27,010</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">35,318</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#FFFFFF"><font
        size="2">Production costs-services</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">9,148</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="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">9,405</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Operating leases 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="2">1,609</font></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="2">1,929</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#FFFFFF"><font
        size="2">Net provisions for contingencies</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">553</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="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">1,643</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,066</font></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="2">1,100</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2"><b>39,386</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="8%" bgcolor="#FFFFFF"><p
        align="right"><font size="2"><b>49,395</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&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%" bgcolor="#EEEEEE"><font
        size="2">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="2">-
        capitalized direct costs associated with self-constructed
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,039</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(828</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>38,347</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="2"><b>48,567</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Production costs-services brokerage include
fees for euro 24 million (euro 26 million at December 31, 2004).</font></p>

<p><font size="2">Costs for research and development that do not
meet the requirements to be capitalized amount to euro 202
million (euro 210 million in 2004).</font></p>

<p><font size="2">Operating leases and other include royalties on
hydrocarbons extracted for euro 965 million (euro 741 million in
2004).</font></p>

<p><font size="2">Provisions for contingencies are net of
deductions not corresponding to cash expenditures and concern in
particular provisions for environmental risks for euro 515
million (euro 145 million in 2004), provisions for contract
penalties and disputes for euro 336 million (euro 23 million
2004), provisions for the revision of selling prices for euro 321
million and loss adjustments and actuarial provisions for euro 82
million (euro 13 million in 2004).</font></p>

<p><font size="2"><b>Payroll and related costs</b></font></p>

<p><font size="2">Payroll and related costs were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Wages and
        salaries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,402</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="2">2,484</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Social security contributions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">662</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Cost
        related to defined benefit plans </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">118</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="2">126</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">218</font></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="2">255</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>3,396</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="2"><b>3,527</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">-
        capitalized direct costs associated with self-constructed
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(151</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(176</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>3,245</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="2"><b>3,351</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Cost related to defined benefit plans is
presented in Note 20.</font></p>

<p><font size="2"><b>Stock compensation</b></font></p>

<p><font size="2"><i>Stock grant</i></font></p>

<p><font size="2">With the aim of improving motivation and
loyalty of the managers of Eni SpA and its subsidiaries as
defined in Article 2359 of the Civil Code</font><a href="#F(14)"><font
size="2"><sup>14</sup></font></a><font size="2"> 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, Eni offers its own
shares purchased along its buy-back program (treasury shares) for
no consideration to those managers of Eni who have achieved
corporate and individual objectives. Assignments vest within 45
days after the end of the third year from the date of the offer.</font></p>

<p><font size="2">At December 31, 2005, 3,127,200 of ordinary
shares with nominal value euro 1 were outstanding and concerned
the 2003 stock grant plan for a total of 1,018,400 shares with a
fair value of euro 11.20 per share, the 2004 stock grant plan for
a total of 912,400 shares with a fair value of euro 14.57 per
share and the 2005 stock grant plan for a total of 1,196,400
shares with a fair value of euro 20.08 per share.</font></p>

<p><font size="2">Changes in the 2003, 2004 and 2005 stock grant
plans consisted of the following (regarding stock grants, no
exercise prices are provided for):</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><font
        size="1"><b>Number of shares</b></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><font
        size="1"><b>Market price </b><sup>(a)</sup></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Market price </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Market price </b><sup>(a)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Stock
        grants as of January 1</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,551,900</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>15.150</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,635,050</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>15.101</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,112,200</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>18.461</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">New rights granted</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,206,000</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">13.764</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">1,035,600</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">17.035</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">1,303,400</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">21.336</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Rights
        exercised in the period</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(1,122,150</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">13.751</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(1,552,9100</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">16.766</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">(1,273,500</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2">23.097</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Rights cancelled in the period</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(700</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.604</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">(6,350</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16.618</font></p>
        </td>
        <td valign="bottom" width="1%" 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="2">(14,900</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">22.390</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Stock
        grants outstanding as of December 31,</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,635,050</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>15.101</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,112,200</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>18.461</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>3,127,200</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="2"><b>23.460</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>of which exercisable at December 31,</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>-</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>-</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>-</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>-</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>38,700</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="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>23.460</b></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 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">(a) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Market price
        relating to new rights granted, rights exercised in the
        period and rights cancelled in the period corresponds to
        the average market value (arithmetic average of official
        prices recorded on Mercato Telematico Azionario in the
        month preceding: (i) the date of the resolution of the
        Board of Directors regarding the stock grants assignment;
        (ii) the date of the recording in the grantee&#146;s
        securities account of the emission/transfer of the shares
        granted; and (iii) the date of the unilateral termination
        of employment for rights cancelled), weighted with the
        number of shares. Market price of stock grants at the
        beginning and at the end of the year is the price
        recorded at December 31. </font></td>
    </tr>
</table>

<p><font size="2"><i>Stock option</i></font></p>

<p><font size="2">With the aim of improving motivation and
loyalty of the managers of Eni SpA and its subsidiaries as
defined in Article 2359 of the Civil Code</font><a href="#F(15)"><font
size="2"><sup>15</sup></font></a><font size="2"> that hold
significant positions of managerial responsibility or that are
considered as strategic managers for the Group, Eni approved
stock compensation plans that provide the assignment for no
consideration of purchase rights of Eni treasury shares
(options).</font></p>

<p><font size="2">Stock options provides the right for the
purchase of treasury share in a 1 to 1 ratio after the end of the
third year from the date of the grant, with a strike price
calculated as arithmetic average of official prices registered on
the Mercato Telematico Azionario in the month preceding
assignment or (starting from 2003), if greater, as average cost
of treasury shares registered in the day preceding assignment.
Strike price for the 2005 stock option grant was euro 22.512.
Stock option grantees can obtain advances by the Group financial
company for the payment of shares acquired on condition that the
grantees contemporaneously underwrite an irrevocable warrant of
sale to the above-mentioned financial company, regarding the
shares acquired.</font></p>

<p><font size="2">At December 31, 2005 a total of 13,379,600
options have been granted for the purchase of 13,379,600 ordinary
shares with a nominal value of euro 1 of Eni SpA. Options refer
to the 2002 stock plan for 903,100 shares with an exercise price
of euro 15.216 per share, to the 2003 stock plan for 4,106,500
shares with an exercise price of euro 13.743 per share, to the
2004 stock plan for 3,659,000 shares with an exercise price of
euro 16.576 per share and to the 2005 stock plan for 4,711,000
shares with an exercise price of euro 22.512 per share.</font></p>

<p><font size="2">At December 31, 2005 the weighted-average
remaining contractual life of the options outstanding at December
2002, 2003, 2004 and 2005 was 4 years and 7 months, 5 years and 7
months, 6 years and 7 months, and 7 years and 7 months,
respectively.</font></p>

<p><font size="2">Changes in the 2003, 2004 and 2005 stock option
plans consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><font
        size="1"><b>Number of shares</b></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><font
        size="1"><strong>Weighted average exercise price</strong></font></td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><strong>Weighted average exercise price</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><strong>Weighted average exercise price</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><hr
        size="1" noshade>
        </td>
        <td valign="bottom" width="0%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><strong>Options
        as of January 1</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>3,518,500</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>15.216</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>8,162,000</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>14.367</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>11,789,000</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>15.111</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">New options granted</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">4,703,000</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">13.743</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">3,993,500</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">16.576</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">4,818,500</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">22.512</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Options
        exercised in the period</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">(354,000</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">14.511</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">(3,106,400</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2">15.364</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Options cancelled in the period </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">(59,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">15.216</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">(12,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">14.45</font></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="10%"
        bgcolor="#EEEEEE"><font size="2">(121,500</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2">16.530</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2"><strong>Options
        outstanding as of December 31,</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>8,162,000</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>14.367</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>11,789,000</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>15.111</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>13,379,600</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"><font
        size="2"><strong>17.705</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><strong>of which exercisable at December 31,</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="10%"
        bgcolor="#EEEEEE"><font size="2"><strong>73,000</strong></font></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="10%"
        bgcolor="#EEEEEE"><font size="2"><strong>14.802</strong></font></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="10%"
        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="10%"
        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="10%"
        bgcolor="#EEEEEE"><font size="2"><strong>1,540,600</strong></font></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="10%"
        bgcolor="#EEEEEE"><font size="2"><strong>16.104</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p align="left"><font size="2">The fair value of stock options
granted during the years 2002, 2003, 2004 and 2005 was euro 5.39,
euro 1.50, euro 2.01 and euro 3.33 for share, respectively, and
was calculated applying the Black-Scholes method using the
following assumptions:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2002</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2003</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2004</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>2005</strong></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Risk-free
        interest rate</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">(%)</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="2">3.5</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="2">3.16</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="2">3.21</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="2">2.51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Expected life</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">(year)</font></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="2">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="2">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="2">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="2">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Expected
        volatility</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">(%)</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="2">43</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="2">22</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="2">19</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="2">21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Expected dividends</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">(%)</font></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="2">4.5</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="2">5.35</font></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="2">4.5</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="2">3.98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Costs of the year related to stock grant and
stock option plans amount to euro 35 million (euro 18 million at
December 31, 2004).</font></p>

<p><font size="2"><b>Compensation of key management personnel</b></font></p>

<p><font size="2">Compensation of persons responsible of key
positions in planning, direction and control functions of Eni
Group companies, including executive officers (key management
personnel) amounted to euro 14 and euro 15 million for 2004 and
2005, respectively, and consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2">Wages and salaries</font></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>
        <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="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Post-employment
        benefits</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Indemnities due upon termination of employment</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="2">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Stock
        grant/option</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">2</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="2"><b>14</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="2"><b>15</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Compensation of Directors, Statutory
Auditors and General Managers</b></font></p>

<p><font size="2">Compensation of Directors, Statutory Auditors
and General Managers amount to euro 4.5 million and euro 19.2
million in 2004 and 2005, respectively. Compensation of Statutory
Auditors amounted to euro 0.688 and euro 0.785 million in 2004
and 2005, respectively.</font></p>

<p><font size="2">Compensation of Directors, Statutory Auditors
and General Managers include emoluments and all other retributive
and social security compensations due for the function of manager
or statutory auditor assumed in Eni SpA or in other companies
included in the scope of consolidation, that are a cost for Eni.</font></p>

<p><font size="2">The average number of employees of the
companies included in the scope of consolidation by type was as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(units)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Senior managers</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="2">1,746</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,754</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Junior
        managers</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="2">10,449</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="2">10,747</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Employees</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="2">35,393</font></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="2">34,457</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Workers</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="2">25,623</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="2">24,345</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>73,211</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="2"><b>71,303</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The average number of employers is calculated
as half of the total of the number of employees at the beginning
and at the end of the period. The average number of senior
managers includes managers employed and operating in foreign
countries, whose position is comparable to a senior manager
status.</font></p>

<p><font size="2"><b>Depreciation, amortization and impairments</b></font></p>

<p><font size="2">Depreciation, amortization and impairments
consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Depreciation and amortization:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- tangible
        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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,670</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="2">4,576</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- intangible assets</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="2">931</font></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="2">936</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&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="2"><b>4,601</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="2"><b>5,512</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Impairments:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- tangible
        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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">329</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="2">264</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- intangible assets</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&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="2"><b>333</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="2"><b>272</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">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>
        <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="60%"><font size="2">- direct
        costs associated with self-constructed 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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>4,931</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="2"><b>5,781</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><b><br>
27 Financial income (expense)</b></p>

<p><font size="2">Financial income (expense) consisted of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Exchange differences, net</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"><p
        align="right"><font size="2">169</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Financial
        expense capitalized</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="2">202</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="2">159</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Income from financial receivables</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="2">95</font></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="2">95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net income
        from securities</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="2">31</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="2">36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Interest on tax credits</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="2">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="2">17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net
        interest due to banks</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="2">(110</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(38</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">Financial expense due to the passage of time <sup>(1)</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="2">(109</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(109</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">Interest
        and other financial expense on ordinary bonds</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="2">(247</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(265</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">Income (expense) on derivatives</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(386</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">Other
        financial expense, net</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="2">(69</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>(156</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(366</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <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">The item
        concerned the increase of provisions for contingencies
        that are indicated at an actualized value in non-current
        liabilities.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">The decrease in income (expense) from
derivatives of euro 420 million is primarily due to the
application from January 1, 2005 of IAS 39 which requires that
derivatives be stated at fair value and the effects charged to
the profit and loss account, instead of being connected with the
economic effects of the hedged transactions as recorded in 2004.
Such derivatives, in fact, do not meet the conditions required by
IFRS to be qualified as hedging instruments. Also the increase in
net exchange differences of euro 169 million is primarily due to
the application of IAS 39, because the effect of the translation
at period end of assets and liabilities denominated in currencies
other than functional currency is not compensated by the effect
of the translation at period end of the commitments for
derivatives contracts.<br>
</font></p>

<p><b>28 Income (expense) from investments</b></p>

<p><font size="2"><b>Effects of investments accounted for using
the equity method</b></font></p>

<p><font size="2">Effects of investments accounted for using the
equity method consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Gains from investments accounted for using the
        equity method</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="2">401</font></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="2">770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Losses
        from investments accounted for using the equity method</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="2">(69</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(33</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>332</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="2"><b>737</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">More information about gains and losses from
investments accounted for using the equity method is presented in
Note 10.</font></p>

<p><font size="2"><b>Other income (expense) from investments</b></font></p>

<p><font size="2">Other income (expense) from investments
consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Gains on disposals</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="2">130</font></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="2">179</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Dividends</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="2">72</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="2">33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Losses on disposals</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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8</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">Other
        income (expense), net</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="2">287</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="2">(27</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>488</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="2"><b>177</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The gains on disposals of euro 179 million
concern the sale of 100% of the share capital of Italiana Petroli
SpA (euro 132 million) and 2.33% of Nuovo Pignone Holding SpA
(euro 24 million). Other net income from investments concern the
gain recorded in the Consolidated Financial Statements due to the
sale of 9.054% of the share capital of Snam Rete Gas SpA to
Mediobanca SpA (euro 308 million).<br>
</font></p>

<p><b>29 Income tax expense</b></p>

<p><font size="2">Income tax expense consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Current
        taxes:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Italian subsidiaries</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,872</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- foreign
        subsidiaries of the Exploration &amp; Production segment</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="2">3,116</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="2">5,116</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- foreign subsidiaries</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">373</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&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="2"><b>4,492</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="2"><b>7,361</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">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>
        <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="60%"><font size="2">- tax
        credits on dividend distributions not offset with current
        tax payment</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="2">(39</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(34</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="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="2"><b>4,453</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="2"><b>7,327</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Net
        deferred taxes:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- Italian subsidiaries</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="2">843</font></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="2">334</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- foreign
        subsidiaries of the Exploration &amp; Production segment</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="2">215</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="2">464</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- foreign subsidiaries</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&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="2"><b>1,069</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="2"><b>801</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>5,522</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="2"><b>8,128</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Current taxes of the year relate to Italian
companies for euro 1,872 million and concern Ires for euro 1,489
and Irap for euro 359 million, and foreign companies for euro 24
million.</font></p>

<p><font size="2">The effective tax rate is 46.8% (42.3% in the
2004) compared with a statutory tax rate of 38.1% (38.2% in the
2004), calculated by applying a 33% tax rate (Ires) to profit
before income taxes and 4.25% tax rate (Irap) to the net value of
production as provided for by Italian laws.</font></p>

<p><font size="2">The difference between the statutory and
effective tax rate was 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="80%" height="16"><font
        size="1">(%)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Statutory tax rate</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"><p
        align="right"><font size="2"><b>38.2</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="2"><b>38.1</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Items
        increasing (decreasing) statutory tax rate:</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>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- higher foreign subsidiaries tax rate</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="2">5.2</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="2">8.8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        permanent differences</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="2">(0.7</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">0.8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2">(0.4</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&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="2"><b>4.1</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="2"><b>8.7</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>42.3</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="2"><b>46.8</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">Permanent differences in 2004 mainly concern
the gain recorded in the Consolidated Financial Statements due to
the sale of 9.054% of the share capital of Snam Rete Gas SpA
(0.7%) to Mediobanca SpA. Permanent differences in 2005 mainly
concerned the undeductibility from taxable income of the addition
in provisions for contingencies following the fine imposed on
February 15, 2006 by the Antitrust Authority on Eni SpA (0.6%).<br>
</font></p>

<p><b>30 Earnings per share</b></p>

<p><font size="2">Basic earnings per share is calculated by
dividing &quot;Net profit&quot; of the year by the
weighted-average number of shares issued and outstanding during
the year, excluding treasury shares.</font></p>

<p><font size="2">The number of shares outstanding used for the
calculation of the basic earnings per share was 3,771,692,584 and
3,758,519,603 in 2004 and 2005, respectively.</font></p>

<p><font size="2">Diluted earnings per share is calculated by
dividing &quot;Net profit&quot; of the year by the
weighted-average number of shares issued and outstanding during
the year, excluding treasury shares, including shares that could
be issued potentially.</font></p>

<p><font size="2">At December 31, 2004 and 2005, shares that
could be issued potentially concern essentially shares granted
under stock grant and stock option plan. The number of shares
outstanding used for the calculation of the diluted earnings per
share was 3,774,953,710 and 3,763,375,140 in 2004 and 2005,
respectively.</font></p>

<p><font size="2">Reconciliation of the average number shares
outstanding used for the calculation of the basic and diluted
earning per share is as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="68%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="15%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="15%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</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>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="15%"><hr size="1" noshade>
        </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="2"><b>Average number of shares used for the
        calculation of the basic earnings per share</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="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,771,692,584</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,758,519,603</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Number of
        potential shares following stock grant plans</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="15%"><p align="right"><font
        size="2">1,953,518</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2">2,268,265</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Number of potential shares following stock
        options plans</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="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,307,608</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,587,272</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2"><b>Average
        number of shares used for the calculation of the diluted
        earnings per share</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="15%"><p align="right"><font
        size="2"><b>3,774,953,710</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2"><b>3,763,375,140</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2"><b>Eni&#146;s net profit</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,788</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2"><b>Basic
        earning per share</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2">(euro per share)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2"><b>1.87</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2"><b>2.34</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2"><b>Diluted earning per share</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(euro per share)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1.87</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2.34</b></font></p>
        </td>
    </tr>
</table>
</center></div>

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

<p><b>31 Information by industry segment and geographic financial
information</b></p>

<p><font size="2"><strong>Information by industry segment</strong></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%" height="14"><p
        align="left"><font size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Exploration &amp;
        Production</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Gas &amp; Power</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Refining &amp; Marketing</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Petrochemicals</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Oilfield Services
        Construction and Engineering</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Other activities</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Corporate and financial
        companies</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><strong>Elimination</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>2004</b></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%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations<sup> (a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">15,346</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">17,302</font></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">26,089</font></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">5,331</font></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">5,696</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,279</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">851</font></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>
        <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="28%"><font size="2">Less:
        intersegment sales</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(10,216</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">(493</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">(753</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">(499</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">(903</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">(754</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">(731</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Net sales to customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,130</font></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">16,809</font></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">25,336</font></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">4,832</font></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">4,793</font></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">525</font></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">120</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">57,545</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Operating
        profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8,185</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">3,428</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">1,080</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">320</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">203</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">(395</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">(363</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">(59</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">12,399</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Provisions for contingencies</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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">309</font></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</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">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="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">553</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,335</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">644</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">476</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">184</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">70</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">106</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,931</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Effects of investments accounted for using the
        equity method </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</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">89</font></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</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">117</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(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">&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">332</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Identifiable
        assets <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">23,866</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">19,852</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">9,118</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">2,821</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">4,706</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">708</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">1,182</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">62,253</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Investments accounted for using the equity
        method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">273</font></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">1,773</font></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">745</font></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</font></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">328</font></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">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">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">&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">3,156</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Identifiable
        liabilities<sup> (c)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,798</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">3,394</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">3,848</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">621</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">2,825</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">1,976</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">1,589</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">19,051</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditures</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,853</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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">693</font></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">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">186</font></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">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">119</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,499</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>2005</b></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%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">22,477</font></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">22,969</font></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">33,732</font></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">6,255</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">5,733</font></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">1,358</font></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">977</font></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>
        <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="28%"><font size="2">Less:
        intersegment sales</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(14,761</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">(572</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">(1,092</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">(683</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">(925</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">(905</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">(835</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Net sales to customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,716</font></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">22,397</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">32,640</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,572</font></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">4,808</font></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">453</font></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">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="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">73,728</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Operating
        profit</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">12,574</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">3,321</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">1,857</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">202</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">307</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">(902</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">(391</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">(141</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">16,827</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Provisions for contingencies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">703</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="6%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="6%" 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="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">1,643</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,100</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">685</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">467</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">147</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">180</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">106</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">100</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</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">5,781</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Effects of investments accounted for using the
        equity method </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">359</font></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">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="6%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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">737</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Identifiable
        assets <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">28,982</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">21,928</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">11,787</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">2,905</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">5,248</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">612</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">1,377</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">(534</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">72,305</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Investments accountedfor using the equity method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">2,155</font></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">936</font></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">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">457</font></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">31</font></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>
        <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">3,890</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Identifiable
        liabilities <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">6,762</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">5,097</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">4,542</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">702</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">3,204</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">2,249</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">1,975</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">24,531</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditures</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,964</font></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">1,152</font></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">656</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">349</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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">7,414</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
<div align="left">

<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">(a) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Before
        elimination of intersegment sales.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        assets directly related to the generation of operating
        profit.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(c)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        liabilities directly related to the generation of
        operating profit.</font></td>
    </tr>
</table>
</div>

<p><font size="2">Intersegment sales are conducted on an
arm&#146;s length basis.</font></p>

<p><font size="2"><b>Geographic financial information</b></font></p>

<p><font size="2"><em>Assets and investments by geographic area
of origin</em></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%" height="14"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14">&nbsp;</td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Other EU</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Rest of Europe</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Americas</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Asia</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Other areas</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="28%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="7%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>2004</b></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%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Identifiable assets <sup>(a)</sup></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">33,812</font></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">9,096</font></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">2,598</font></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">2,011</font></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">4,499</font></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">9,942</font></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">295</font></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">62,253</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Capital
        expenditures</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">2,655</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">337</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">387</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">357</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">1,066</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">2,622</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">75</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">7,499</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>2005</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>
        <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="28%"><font size="2">Identifiable
        assets <sup>(a)</sup></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">38,229</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">8,768</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">3,085</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">2,670</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">5,864</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">13,445</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">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">72,305</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditures</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">2,442</font></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">545</font></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">415</font></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">507</font></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">1,181</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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,233</font></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">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="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,414</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
<div align="left">

<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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        assets directly related to the generation of operating
        profit.</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>
</table>
</div>

<p><font size="2"><em>Sales from operations by geographic area of
destination</em></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2">Italy</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="2">27,100</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="2">32,846</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other European Union</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="2">13,095</font></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="2">19,601</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Rest of
        Europe</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="2">3,769</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="2">5,123</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Americas</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="2">5,790</font></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="2">6,103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Asia</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="2">3,088</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="2">4,399</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Africa</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="2">4,148</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,259</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        areas</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="2">555</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="2">397</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>57,545</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="2"><b>73,728</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p><b>32 Transactions with related parties</b></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 directly
and indirectly owned or controlled by the Government. All such
transactions are mainly conducted on an arm&#146;s length basis
in the interest of Eni companies.</font></p>

<p><font size="2">The following is a description of trade and
financing transactions with related parties. 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"><b>Trade and other transactions</b></font></p>

<p><font size="2">Trade and other transactions for the year 2004
consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="39%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="center" valign="bottom" width="31%"
        height="16"><p align="center"><font size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="28%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="31%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<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>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="69%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="left">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%" height="14"><font
        size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="8%" height="14"><p
        align="center"><font size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="8%" height="14"><p
        align="center"><font size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="8%" height="14"><p
        align="center"><font size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="12%" height="14"><p
        align="center"><font size="1"><b>Commitments</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Services</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="7%" height="14"><p
        align="center"><font size="1"><b>Services</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="28%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="8%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="8%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="8%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="12%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</div>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>Joint ventures and affiliated companies</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="11%" 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="28%"><font size="2">Albacom
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8</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="2">14</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="11%">&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">3</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">35</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">ASG Scarl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">51</font></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="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="11%" 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">203</font></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</font></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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Azienda
        Energia e Servizi Torino SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><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="7%"><p align="right"><font
        size="2">18</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="11%">&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">68</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Bayernoil Raffineriegesellschaft mbH</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="2">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="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="11%" 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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">791</font></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</font></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="28%"><font size="2">Bernhard
        Rosa Inh. Ingeborg Plochinger GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10</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="11%">&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">108</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="28%" bgcolor="#EEEEEE"><font
        size="2">Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43</font></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="2">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="11%" 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">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="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">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Bronberger
        &amp; Kessler und Gilg &amp; Schweiger GmbH</font></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="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="11%">&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">141</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="28%" bgcolor="#EEEEEE"><font
        size="2">Cam Petroli Srl</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</font></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="11%" 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</font></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="28%"><font size="2">CEPAV
        (Consorzio Eni per l&#146;Alta velocit&#224;) Uno</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">167</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="2">165</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="2">4,894</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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">531</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Eni Oil Co Ltd</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</font></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="2">163</font></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="11%" 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">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="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="28%"><font size="2">Erg
        Raffinerie Mediterranee SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">30</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="2">30</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="11%"><p align="right"><font
        size="2">100</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">1,043</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</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">412</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</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Gruppo Distribuzione Petroli Srl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="11%" 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">45</font></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="28%"><font size="2">Karachaganak
        Petroleum Operating BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">12</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="11%">&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">104</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">42</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Modena Scarl</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</font></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="2">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="2">43</font></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">&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">134</font></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>
        <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">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Petrobel
        Belayim Petroleum Co</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="2">83</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="11%">&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">240</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>
        <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="28%" bgcolor="#EEEEEE"><font
        size="2">Promgas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="11%" 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">230</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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">&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="28%"><font size="2">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">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="2">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="11%">&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">245</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">62</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="28%" bgcolor="#EEEEEE"><font
        size="2">Rodano Consortile Scarl</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</font></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="2">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="7%" 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="1%" 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="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">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">&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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Siciliana
        Gas Vendite SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">9</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="11%">&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">36</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="28%" bgcolor="#EEEEEE"><font
        size="2">Supermetanol CA</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="2">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="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="11%" 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">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">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="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="28%"><font size="2">Super
        Octanos CA</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="2">55</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="11%">&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">212</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</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>
        <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>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2">Trans Austria Gasleitung GmbH</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="2">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">&nbsp;</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">&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">167</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Trans
        Europa Naturgas Pipeline GmbH</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="2">9</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="11%">&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">51</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>
        <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="28%" bgcolor="#EEEEEE"><font
        size="2">Transitgas AG</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="2">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">&nbsp;</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">&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">59</font></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>
        <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="28%"><font size="2">Uni&#243;n
        Fenosa Gas Comercializadora SA</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="11%">&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">7</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="28%" bgcolor="#EEEEEE"><font
        size="2">Uni&#243;n Fenosa Gas SA</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="2">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">&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">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Other <sup>(*)</sup></font></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="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="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">109</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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">23</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>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">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</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#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>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="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="2"><b>5,191</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="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>100</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>1,592</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>2,489</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>1,134</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>630</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2"><b>Unconsolidated
        subsidiaries</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="11%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Agip Kazakhstan North Caspian Operating Co NV</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</font></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="11%" 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</font></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</font></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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Eni BTC
        Ltd</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%"><p align="right"><font
        size="2">143</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Eni Gas BV</font></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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40</font></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="2">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="11%" 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">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">&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</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="2">Eni Middle
        East BV</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%"><p align="right"><font
        size="2">367</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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="28%" bgcolor="#EEEEEE"><font
        size="2">Transmediterranean Pipeline Co Ltd</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</font></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="2">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">&nbsp;</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">&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">90</font></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>
        <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="28%"><font size="2">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">30</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="2">4</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="2">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%">&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">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">8</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</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</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#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>63</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="2"><b>45</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="2"><b>537</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="11%" 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"><b>5</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>117</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>2</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>21</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>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="2"><b>932</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="2"><b>5,728</b></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="2"><b>100</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>1,597</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>2,606</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>1,136</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>651</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="2"><b>Entities owned or controlledby the Government</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="11%" 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="28%"><font size="2">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">234</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="2">3</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="11%">&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">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">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">1,287</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">350</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#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>797</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="2"><b>935</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="2"><b>5,728</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="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>100</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>1,599</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>2,626</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>2,423</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>1,001</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
<div align="left">

<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">(*) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 50
        million.</font></td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<p><font size="2">Trade and other transactions for the year 2005
consisted of the following:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="29%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="center" valign="bottom" width="39%"
        height="16"><p align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="29%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><hr size="1" noshade>
        </td>
    </tr>
</table>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>Costs</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>Revenues</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%" height="14"><font
        size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Services</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="14">&nbsp;</td>
        <td valign="bottom" width="9%" height="14"><p
        align="center"><font size="1"><b>Services</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="30%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="30%"><font size="2"><b>Joint
        ventures and affiliated companies</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>
        <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="30%" bgcolor="#EEEEEE"><font
        size="2">ASG Scarl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">72</font></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="2">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="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="2">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">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="2">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="2">24</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="2">56</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%"><p align="right"><font
        size="2">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" 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="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="2">814</font></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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">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="2">10</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%">&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="2">172</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="30%" bgcolor="#EEEEEE"><font
        size="2">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="2">45</font></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="2">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="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="2">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="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="2">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Bronberger
        &amp; Kessler und Gilg &amp; Schweiger GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">12</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%">&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="2">207</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="30%" bgcolor="#EEEEEE"><font
        size="2">Cam Petroli Srl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">85</font></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">&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"><p
        align="right"><font size="2">593</font></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="30%"><font size="2">CEPAV
        (Consorzio Eni per l&#146;Alta Velocit&#224;) Uno</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">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="2">4,894</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%">&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="2">411</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="2">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="2">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="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="2">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="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="30%"><font size="2">Eni Oil Co
        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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">84</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="2">50</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>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">Fox Energy Srl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">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="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="2">240</font></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="30%"><font size="2">Gruppo
        Distribuzione Petroli Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">22</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%">&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="2">89</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="30%" bgcolor="#EEEEEE"><font
        size="2">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="2">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="2">46</font></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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">99</font></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="2">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Mangrove
        Gas Netherlands 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="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="2">55</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%">&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="30%" bgcolor="#EEEEEE"><font
        size="2">Modena Scarl</font></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>
        <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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">138</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="2">248</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>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="2">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="2">45</font></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="2">307</font></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="2">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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">10</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="2">10</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="2">204</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="2">94</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="30%" bgcolor="#EEEEEE"><font
        size="2">Rodano Consortile Scarl</font></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>
        <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="2">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="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="2">80</font></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="2">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">RPCO
        Enterprise 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="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="2">55</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%">&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="30%" bgcolor="#EEEEEE"><font
        size="2">Siciliana Gas Vendite SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="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"><p
        align="right"><font size="2">48</font></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="30%"><font size="2">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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">8</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%"><p align="right"><font
        size="2">65</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%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">Super Octanos CA</font></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>
        <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="2">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="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="2">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="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="30%"><font size="2">Toscana
        Gas Clienti SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">46</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%">&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="2">118</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="30%" bgcolor="#EEEEEE"><font
        size="2">Trans Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">43</font></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="2">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">&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="2">43</font></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="2">143</font></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="2">47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2</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="2">44</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>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="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="2">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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Transmediterranean
        Pipeline Co 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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="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="2">88</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%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">Uni&#243;n Fenosa Gas Comercializadora SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">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="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="2">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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%"><font size="2">Uni&#243;n
        Fenosa Gas SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><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="8%"><p align="right"><font
        size="2">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="2">79</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%"><p align="right"><font
        size="2">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="2">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="2">84</font></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="2">84</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>598</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="2"><b>940</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="2"><b>5,312</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="2"><b>838</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="2"><b>2,456</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="2"><b>2,032</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="2"><b>547</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2"><b>Unconsolidated 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="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>
        <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="30%"><font size="2">Agip
        Kazakhstan North Caspian Operating Co NV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">152</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%"><p align="right"><font
        size="2">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="2">19</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%"><p align="right"><font
        size="2">28</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2">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="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="2">165</font></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">&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="30%"><font size="2">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">44</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="2">48</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="2">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="2">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="2">31</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="2">15</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="2">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" 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"><b>48</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="2"><b>200</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="2"><b>173</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="2"><b>6</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="2"><b>50</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="2"><b>15</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="2"><b>37</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>646</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="2"><b>1,140</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="2"><b>5,485</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="2"><b>844</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="2"><b>2,506</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="2"><b>2,047</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="2"><b>584</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><font
        size="2"><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="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>
        <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="30%"><font size="2">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">187</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="2">5</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%"><p align="right"><font
        size="2">12</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="2">10</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="2">1,180</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="2">333</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="30%" 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"><b>833</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="2"><b>1,145</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="2"><b>5,485</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>856</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="2"><b>2,516</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="2"><b>3,227</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="2"><b>917</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
<div align="left">

<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">(*) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 50
        million.</font></td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<p><font size="2">Engineering, construction and maintenance
services were acquired on an arm&#146;s length basis from the
Cosmi Holding Group, related to Eni through a member of the Board
of Directors, for a total of approximately euro 28 million and
euro 18 million in 2004 and 2005, respectively.</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="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">provision of
        specialized services in upstream activities from Agip
        Kazakhstan North Caspian Operating Co NV, Eni Oil Co Ltd,
        Eni Gas BV, Karachaganak Petroleum Operating BV and
        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 Co BV and Agip
        Kazakhstan North Caspian Operating Co NV the provision of
        services from the Oilfield Services Construction and
        Engineering segment of Eni;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">communication
        services, data transmission and concessions of optical
        fibers with Albacom SpA; in 2005 the company was sold;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">transportation
        and distribution activities with Azienda Energia e
        Servizi Torino SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">sale of
        petrochemical products, supply of crude oil refining
        activities and fuel additive purchase from Bayernoil
        Raffineriegesellschaft mbH, Bernhard Rosa Inh. Ingeborg
        Plochinger GmbH, Bronberger &amp;&nbsp;Kessler und Gilg
        &amp; Schweiger GmbH, Cam Petroli Srl, Gruppo
        Distribuzione Petroli Srl, Fox Energy Srl, Supermetanol
        CA and Superoctanos CA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">acquisition
        of natural gas transport services outside Italy from Blue
        Stream Pipeline Co BV and services from the Oilfield
        Services Construction and Engineering segment of Eni;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149; </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">acquisition
        of refining services from Erg Raffinerie Mediterranee SpA
        and Raffineria di Milazzo ScpA on the basis of general
        conditions applied to third parties for Erg Raffinerie
        Mediterranee SpA and of incurred costs for Raffineria di
        Milazzo ScpA; in 2005 Erg Raffinerie Mediterranee SpA was
        sold;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">guarantees
        given on behalf of Mangrove Gas Netherlands BV and RPCO
        Enterprise Ltd relating to bid bonds and performance
        bonds;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149; </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">sale and
        acquisition of natural gas outside Italy with Promgas
        SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">sale of
        natural gas with Siciliana Gas Vendite SpA e Toscana Gas
        Clienti SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">transactions
        related to the planning and the construction of the
        tracks for high speed/high capacity trains from Milan to
        Bologna with the Consorzio Eni per l&#146;Alta Velocit&#224;
        - CEPAV Uno, ASG Scarl, Modena Scarl and Rodano
        Consortile Scarl, and relevant guarantees;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">acquisition
        of natural gas transport services outside Italy from
        Trans Austria Gasleitung GmbH, Trans Europa Naturgas
        Pipeline GmbH and Transitgas AG; transactions are
        regulated on the basis of compensation calculated
        following the same criteria used in third parties
        transactions;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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 and sale and acquisition of natural
        outside Italy with Uni&#243;n Fenosa Gas SA and Uni&#243;n Fenosa
        Gas Comercializadora SA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">guarantees
        given to Eni Middle East BV against the contractual
        commitments with the Government of the Kingdom of Saudi
        Arabia in 2004; in 2005 the company has been included in
        the scope of consolidation; and</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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, the sale of fuel oil and the sale
and purchase of electricity; transactions are mainly conducted on
an arm&#146;s length basis.</font></p>

<p><font size="2"><b>Financing transactions</b></font></p>

<p><font size="2">Financing transactions in 2004 were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="29%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="center" valign="bottom" width="19%"
        height="16"><p align="center"><font size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="50%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="29%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="1"><strong>Name</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Receivables</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Payables</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Charges</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Gains</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="50%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="2"><b>Joint
        ventures and affiliated companies</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>
        <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="2">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="2">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="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="2">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="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="2">Blue
        Stream Pipeline Co 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="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">768</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%"><p align="right"><font
        size="2">29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">EnBW - Eni Verwaltungsgesellschaft 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="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="2">250</font></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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Raffineria
        di Milazzo ScpA</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="2">107</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>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Spanish Egyptian Gas Co SAE</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="2">404</font></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="2">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">389</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%">&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="2">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">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="2">197</font></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">&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="2">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">91</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="2">55</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="2">9</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="2">11</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="2"><b>660</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="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,672</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="2"><b>9</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="2"><b>67</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2"><b>Unconsolidated
        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="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="2">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="2">71</font></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="2">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="2">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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</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="2"><b>71</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="2"><b>54</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="2"><b>2</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="2"><b>4</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="2"><b>2</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>147</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="2"><b>1,674</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>13</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="2"><b>69</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="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">(*) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 50
        million.</font></td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">Financing transactions in 2005
were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="29%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="center" valign="bottom" width="19%"
        height="16"><p align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="50%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="29%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" height="16"><font
        size="1"><strong>Name</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Receivables</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Payables</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Guarantees</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Charges</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Gains</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="50%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="2"><b>Joint
        ventures and affiliated companies</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>
        <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="2">Blue Stream Pipeline Co BV</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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">887</font></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">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Raffineria
        di Milazzo ScpA</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="2">72</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>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">Spanish Egyptian Gas Co SAE</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="2">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="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="2">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">386</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%">&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="2">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="2">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="2">190</font></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">&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="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2">Other<sup>
        (*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">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="2">125</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="2">81</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="2">27</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="2">47</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>140</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="2"><b>1,400</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="2"><b>27</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="2"><b>70</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="2"><b>Unconsolidated
        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="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="2">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="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</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="2"><b>79</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="2"><b>30</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="2"><b>34</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="2"><b>1</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="2"><b>2</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>170</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="2"><b>1,434</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="2"><b>28</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="2"><b>72</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="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">(*) </font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Each
        individual amount included herein does not exceed euro 50
        million.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">Most significant transactions in 2005 included:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">lendings and
        guarantees to Albacom SpA in 2004; in 2005 Albacom SpA
        has been sold to third parties;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">bank debt
        guarantees given on behalf of Blue Stream Pipeline Co BV,
        EnBW - Eni Verwaltungsgesellschaft mbH, Raffineria di
        Milazzo and Spanish Egyptian Gas Co SAE and the cash
        deposit at Eni&#146;s financial companies; guarantee
        given on behalf of EnBW - Eni Verwaltungsgesellschaft mbH
        expired in 2005; and</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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>&nbsp;</p>

<p><a
name="33 Adjustment of the Consolidated Financial Statements to U.S. GAAP"><b>33
Adjustment of the Consolidated Financial Statements to U.S. GAAP</b></a></p>

<p><font size="2">As its shares are listed on the New York Stock
Exchange, Eni files an Annual Report (Form 20-F) with the
Securities and Exchange Commission (SEC). The following
information is necessary to reconcile the Italian consolidated
annual report for the 2005 to generally accepted accounting
principles in the United States (U.S. GAAP).</font></p>

<p><font size="2"><b>Summary of significant differences between
IFRS and U.S. GAAP</b></font></p>

<p><font size="2">Eni&#146;s financial statements at December 31,
2005 have been prepared in accordance with International
Financial Reporting Standards (IFRS)</font><a href="#F(16)"><font
size="2"><sup>16</sup></font></a><font size="2"> adopted by the
European Commission, which differ in certain respects from U.S.
GAAP. A description of the significant differences and their
effects on net profit and shareholders&#146; equity is set forth
in the following notes</font><a href="#F(17)"><font size="2"><sup>17</sup></font></a><font
size="2">. Compared with the Italian accounting principles
applied until December 31, 2004 the differences between IFRS and
U.S. GAAP are considerably fewer.</font></p>

<p><font size="2"><i>A) Consolidation policy</i></font></p>

<p><font size="2">Eni&#146;s consolidation policy is described
under &quot;Principles of consolidation&quot; in Note 12 to the
Consolidated Financial Statements. In particular, under IFRS, 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
(43.26%), 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"><i>B) Exploration &amp; production activities</i></font></p>

<p><font size="2"><i>Exploration</i></font></p>

<p><font size="2">Under IFRS, the internationally specific
criteria have been applied for hydrocarbons exploration and
production activities. In particular, 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 after the completion of
drilling if: (i) such wells have found a sufficient quantity of
reserves to justify completion as a producing wells;
(ii)&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 is assumed to be impaired, and its costs, net of any salvage
value, are charged to expense. 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.</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 IFRS, 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 on UOP method.</font></p>

<p><font size="2"><i>C) Valuation of assets and subsequent
revaluation</i></font></p>

<p><font size="2">Both IFRS and U.S. GAAP require that assets
which are impaired be written down to their fair value, with the
exception of the following aspects.</font></p>

<p><font size="2">Under IFRS, in order to determine whether an
impairment exists, the book value of an asset in question is
compared with its recoverable amount which is represented by the
greater of fair value, net of disposal costs and value in use,
which is calculated by discounting estimated cash flows arising
from the use of the asset and its sale at the end of its useful
life. Impairment charges of assets different from goodwill are
reversed when the situation giving rise to an impairment ceases
to exist.</font></p>

<p><font size="2">Under U.S. GAAP, the recoverability of the
value of an asset used in the production process is first checked
by comparing the carrying amount with the sum of undiscounted
cash flows expected from use of the asset and its disposal at the
end of its useful life. Only if the result of this first check is
negative does the entity write the asset down using discounted
future cash flows. Under U.S. GAAP reversals of impairment
charges are not permitted.</font></p>

<p><font size="2"><i>D) Deferred tax assets and liabilities</i></font></p>

<p><font size="2">Under IFRS, 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.</font></p>

<p><font size="2">Under U.S. GAAP, deferred tax liabilities are
recognized regardless of expected distribution of dividends or
the disposal of investments. However, U.S. GAAP does not require
the accrual of deferred taxes when the investment is a foreign
subsidiary and there is sufficient evidence that profits will
remain permanently invested in the entity.</font></p>

<p><font size="2">The adjustments included in Note 34 include the
recognition of 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">The adjustment relating to the results of 2005
includes the impact of the circumstance that starting on January
1, 2005, the Company recorded for U.S. GAAP purposes the tax
effects of temporary differences of activities conducted under
the terms of certain Production Sharing Agreements where the
company&#146;s income tax liability is paid out of Eni&#146;s
share of oil and gas production. The effect of recording did not
have a material effect on the Company&#146;s results of
operations.</font></p>

<p><font size="2"><i>E) Intangible assets</i></font></p>

<p><font size="2">Under U.S. GAAP intangible assets include the
recording, separately from goodwill, of assets acquired in or
following business combinations arising from legal or contractual
rights regardless of their ability to be transferred and of other
assets owned by the entity that can be transferred individually
or together with other assets and liabilities. If such intangible
assets have definite lives they are amortized by the straight
line method over their useful lives.</font></p>

<p><font size="2">IFRS are consistent with U.S. GAAP. However,
considering that in the first application of IFRS, Eni has
decided not to restate business combinations, the value of the
intangible assets described is recorded in the item
&quot;Goodwill&quot;.</font></p>

<p><font size="2">Both under U.S. GAAP and IFRS, 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. Such
accounting principles have been adopted starting from January 1,
2002 for U.S. GAAP and January 1, 2004 for IFRS. The adjustments
for the reconciliation of the shareholders equity included in
Note 34 concern the reversal of the amortization of goodwill for
the years 2002 and 2003.</font></p>

<p><font size="2"><em>F) Valuation of Inventories</em></font></p>

<p><font size="2">Under U.S. GAAP, crude oil, petroleum products
and natural gas inventories are calculated using the LIFO method.</font></p>

<p><font size="2">Under IFRS the LIFO method is not permitted.<br>
</font></p>

<p><b>34 Reconciliation of net profit and shareholders&#146;
equity determined under IFRS to U.S. GAAP</b></p>

<p><font size="2">The following is a summary of the significant
adjustments to net profit for 2004 and 2005 and to
shareholders&#146; equity as of December 31, 2004 and as of
December 31, 2005 that would be required if U.S. GAAP had been
applied instead of IFRS in the Consolidated Financial Statements.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Net profit according to the financial
        statements prepared under IFRS</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,059</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="2"><b>8,788</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Items
        increasing (decreasing) reported net profit:</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="2">A. effect of the differences related to
        companies consolidated under IFRS but carried at equity
        method under U.S. GAAP</font></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>
        <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="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">B.
        successful-efforts accounting</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(82</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">C. elimination of assets impairments and
        revaluations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="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="2">D.
        deferred income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(279</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">E. assets associated to the acquisition of a
        company (portfolio of clients)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">F.
        valuation of inventories</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(316</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(956</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of the difference between IFRS and U.S.
        GAAP on investments accounted for using the equity method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        adjustments <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(280</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of U.S. GAAP adjustments on minority
        interest <sup>(b)</sup></font></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>
        <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="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Net
        adjustment</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(658</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(1,205</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net profit 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="2"><b>6,401</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="2"><b>7,583</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Basic
        profit per share <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1.70</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="2">2.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Diluted profit per share <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">2.01</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Basic
        profit per ADS (based on two shares per ADS) <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3.39</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="2">4.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Diluted profit per ADS (based on two shares per
        ADS) <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.39</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="2">4.03</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In 2004,
        other adjustments relate to other reconciling items
        between IFRS and U.S. GAAP mainly in respect of the
        accounting of the derivative financial instruments, which
        in 2004 were not accounted for under the fair value
        accounting method as permitted under IFRS first
        application exemptions.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(b)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">Adjustment to account for
        minority interest portion of differences A through F,
        which include 100% of differences between IFRS and U.S.
        GAAP on less than wholly-owned subsidiaries.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(c)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">Amounts in euro.</font></td>
    </tr>
</table>
</center></div>

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

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Shareholders&#146;
        equity according to the financial statements prepared
        under IFRS</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>32,374</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="2"><b>36,868</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Items increasing (decreasing) reported
        shareholders&#146; equity <sup>(a)</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">A. effect
        of the differences related to companies consolidated
        under IFRS but carried at equity method under U.S. GAAP</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">61</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="2">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">2,072</font></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="2">2,504</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">C.
        elimination of assets impairments and revaluations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">231</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="2">230</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">D. deferred income taxes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,982</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,415</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">E.
        goodwill</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">846</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="2">811</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">F. 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">G.
        valuation of inventories</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,080</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,036</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of the difference between IFRS and U.S.
        GAAP on investments accounted for using the equity method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">269</font></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="2">173</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(137</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="80%" bgcolor="#EEEEEE"><font
        size="2">Effect of U.S. GAAP adjustments on minority
        interest <sup>(b)</sup></font></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>
        <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="2">(31</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Net
        adjustment</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(725</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(1,743</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>31,649</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="2"><b>35,125</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Items
        increasing (decreasing) reported shareholders&#146;
        equity of foreign companies are translated into euro at
        the exchange rate prevailing at the end of each period.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(b)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">Adjustment to account for
        minority interest portion of differences A through G,
        which include 100% of differences between IFRS and U.S.
        GAAP on less than wholly-owned subsidiaries.</font></td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">The consolidated balance sheets,
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="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>ASSETS</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Current assets</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Cash and
        cash equivalent</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">988</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="2">1,121</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other financial assets for trading or available
        for sale</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,484</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Trade and
        other receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13,268</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="2">17,971</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,273</font></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="2">1,929</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Income tax
        receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">636</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="2">575</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">494</font></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="2">387</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Total
        current assets</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>19,134</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="2"><b>23,467</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Non-current assets</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Property,
        plant and equipment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">39,652</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="2">43,868</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Inventories - compulsory stock</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,462</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Intangible
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5,125</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="2">5,244</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Investments accounted for using the equity
        method</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,892</font></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="2">4,589</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">439</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="2">416</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other financial assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,015</font></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="2">1,105</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Deferred
        tax assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,159</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="2">1,847</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other non-current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">276</font></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="2">979</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Total
        non-current assets</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>53,220</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="2"><b>59,510</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL ASSETS</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>72,354</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="2"><b>82,977</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>LIABILITIES
        AND EQUITY</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Current liabilities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Current
        financial liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4,474</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="2">4,916</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Current portion of long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">809</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Trade and
        other payables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">9,392</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="2">11,552</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Taxes payable</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,423</font></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="2">3,296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        current liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">594</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="2">648</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Total current liabilities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17,818</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>21,221</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Non-current
        liabilities</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,288</font></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="2">7,229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Provisions
        for contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5,720</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="2">7,615</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Provisions for employee benefits</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">939</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Deferred
        tax liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">6,367</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="2">8,370</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Other non-current liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">1,015</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Total
        non-current liabilities</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>20,582</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="2"><b>25,168</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL LIABILITIES</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>38,400</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="2"><b>46,389</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>SHAREHOLDERS&#146;
        EQUITY</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Minority interests</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,305</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="2"><b>1,463</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Eni
        shareholders&#146; equity:</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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Share capital: 4,005,358,876 fully paid shares
        nominal value euro 1 each (4,004,424,476 shares at
        December 31, 2004)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,004</font></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="2">4,005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">24,473</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="2">27,753</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Net profit</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,401</font></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="2">7,583</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Treasury
        shares</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,216</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Eni shareholders&#146; equity</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>31,649</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="2"><b>35,125</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2"><b>Total
        shareholders&#146; equity</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>33,954</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="2"><b>36,588</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>TOTAL LIABILITIES AND SHAREHOLDERS&#146;
        EQUITY</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>72,354</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="2"><b>82,977</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p align="left"><font size="2">Fixed assets determined under U.S.
GAAP consisted of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fixed
        assets, gross:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">39,584</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47,882</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">20,106</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="2">21,514</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,568</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,059</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,793</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="2">3,923</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,511</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="2">1,413</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">191</font></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="2">212</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(88</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>73,863</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="2"><b>83,987</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Accumulated
        depreciation and amortization:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18,155</font></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="2">22,786</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">6,896</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="2">7,754</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,214</font></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="2">5,503</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,564</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="2">2,715</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,229</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="2">1,221</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84</font></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="2">88</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>34,211</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="2"><b>40,119</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Fixed
        assets, net:</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="2">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">21,429</font></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="2">25,096</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13,210</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="2">13,760</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,354</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,556</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1,229</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="2">1,208</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">41</font></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="2">16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">282</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="2">192</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">124</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        Elimination of intra-group profits</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="2">(84</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>39,652</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="2"><b>43,868</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

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

<p align="left"><font size="2">With regard to the profit and loss
account, operating profit (loss) by industry segment and profit
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="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Operating profit (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>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Exploration
        &amp; Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">7,946</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="2">12,672</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">3,371</font></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="2">3,237</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">811</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="2">881</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">202</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">(364</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(935</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Corporate
        and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(254</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(389</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Elimination of intra-group profits</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="2">(141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</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="2"><b>11,739</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="2"><b>15,528</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net profit before income taxes</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,324</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="2"><b>16,281</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>35 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 (SFAS 143)</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%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><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="2"><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="2"><b>1,959</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">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="2">193</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="2">311</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Accretion discount</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">80</font></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="2">106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Revisions
        of previous estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">40</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="2">277</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">(32</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Property
        dispositions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(234</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="80%" bgcolor="#EEEEEE"><font
        size="2">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="2">(36</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">110</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(10</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><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="2"><b>1,959</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="2"><b>2,646</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">Revisions of previous estimates were made in
connection with higher estimated costs for the retirement and
removal of assets pertaining to certain fields located mainly in
United Kingdom, Norway and Kazakhstan.</font></p>

<p><font size="2">In March 2005, the FASB issued FASB
Interpretation No. 47, &quot;<i>Accounting for Conditional Asset
Retirement Obligations &#150; An Interpretation of FASB Statement
No. 143</i>&quot; (FIN 47), which was effective for the company
on December 31, 2005. In adopting FIN 47, the company did not
recognize any additional liabilities for conditional retirement
obligations.</font></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;. Domestic and foreign
components of pre-tax income were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Domestic</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="2">5,468</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,727</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Foreign</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="2">6,856</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="2">11,554</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>12,324</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="2"><b>16,281</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2">The provisions for income taxes were as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Current</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="2">4,470</font></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="2">7,217</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Deferred</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="2">1,112</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="2">1,116</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</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="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="2"><b>5,582</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="2"><b>8,333</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom"><font size="2">Domestic</font></td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><p align="right"><font size="2">2,197</font></p>
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><p align="right"><font size="2">2,066</font></p>
        </td>
        <td valign="bottom">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" bgcolor="#EEEEEE"><font size="2">Foreign</font></td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">3,385</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" bgcolor="#EEEEEE"><p align="right"><font
        size="2">6,267</font></p>
        </td>
        <td valign="bottom" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><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 a 4.25% rate (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="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </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="2"><b>Income before tax 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="2"><b>12,324</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="2"><b>16,281</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Italian
        statutory tax rate (state and local)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">38.3</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="2">37.9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><strong>Expected income tax provision in
        accordance with U.S. GAAP at Italian statutory tax rate</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>4,714</strong></font></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="2"><strong>6,176</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Effect of
        items increasing (decreasing) the Italian statutory tax
        rate:</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="2">- taxation of foreign operations at rates
        different from Italian statutory tax rate</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,946</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- taxes on
        distributable reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">446</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="2">252</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- permanent differences</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        devaluation/revaluation of deferred tax assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- benefits deriving from the application of
        favorable tax laws</font></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>
        <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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(109</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>5,582</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="2"><b>8,333</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Income taxes in accordance with U.S GAAP</b></font></p>

<p><font size="2"><i>Net deferred tax liabilities</i></font></p>

<p><font size="2">The tax effects of significant temporary
differences causing the tax liabilities were as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Deferred
        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>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- accelerated depreciation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,672</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,006</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        distributable reserves subject to taxes in case of
        distribution</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,970</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="2">3,212</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- excess cost paid for the acquisition of
        consolidated investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,033</font></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="2">485</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        successful-efforts method accounting</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">467</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="2">690</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- capitalization of interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">246</font></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="2">245</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">-
        provisions for uncollectible receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">137</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="2">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- release of excess contingency provisions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- gains
        taxable in the future</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">46</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="2">34</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- other <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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>10,032</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="2"><b>11,957</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Deferred tax assets:</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="2">- accruals
        for doubtful accounts and contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,045</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,949</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- revaluation of assets in accordance with Law
        342/2000 and 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="2">(2,000</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,186</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- tax loss
        carryforwards</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,072</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(510</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- undeductible expense on investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(472</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(237</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- 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="2">(225</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(135</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- undeductible depreciation and amortization of
        assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(432</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(904</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- other <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(599</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,062</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></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="2"><b>(6,845</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(5,983</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Less:</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="2">- valuation allowance</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,021</font></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="2">549</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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="2"><b>(4,824</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>(5,434</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2"><b>Net deferred tax liabilities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,208</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="2"><b>6,523</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 width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td width="2%"><font size="1">(a)</font></td>
        <td width="2%">&nbsp;</td>
        <td width="96%"><font size="1">Other deferred tax assets
        and liabilities items pertain in particular to temporary
        differences arising in connection with the recognition of
        asset removal obligations.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">The valuation allowance relates to deferred tax
assets of euro 549 million (euro 2,021 million at December 31,
2004) of consolidated companies whose expected future fiscal
profits are not considered sufficient for the utilization of
these 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 IFRS and U.S. GAAP relates to the companies which are
consolidated under IFRS (see Note 21), but excluded from
consolidation according to U.S. GAAP.</font></p>

<p><font size="2"><b>Investments</b></font></p>

<p><font size="2">At December 31, 2004 and 2005, investments
accounted for under the equity method of euro 3,892 million and
euro 4,589 million, respectively, included shares of Saipem SpA,
which is publicly listed on the Italian Stock Exchange. 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="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Eni&#146;s number of shares</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Equity ratio<br>
        </strong>(%)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Share price<br>
        </strong>(euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>Market value<br>
        </strong>(million euro)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>December
        31, 2004</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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2">Saipem SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">189,423,307</font></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="2">43.29</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.864</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="2">1,679</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>December
        31, 2005</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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2">Saipem SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">189,423,307</font></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="2">43.26</font></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="2">13.793</font></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="2">2,613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="2">In 2004 and 2005, Saipem SpA was
included in the consolidation under IFRS, while, under U.S. GAAP,
it is valued under the equity method. 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="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Dec. 31, 2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="2">Total
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">5,137</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">5,968</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- current</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">2,514</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3,101</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- non
        current</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">2,623</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">2,867</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Total liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3,592</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">4,325</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">- current</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">2,941</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3,633</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">- non current</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">651</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">692</font></td>
    </tr>
</table>
</center></div>

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

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="80%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</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="2">4,306</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,528</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Operating
        profit</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="2">328</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="2">365</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Net profit</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="2">235</font></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="2">255</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</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><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">EXPLORATION &amp; PRODUCTION: through
Exploration &amp; Production Division and subsidiaries, Eni
engages in hydrocarbon exploration and production in Italy, North
Africa (Algeria, Egypt, Libya and Tunisia), West Africa (Angola,
Congo and Nigeria), the North Sea (Norway and the United
Kingdom), Latin America (Venezuela), the former Soviet Union
countries (mainly Kazakhstan), the United States (Gulf of Mexico
and Alaska) and Asia (mainly Saudi Arabia, China, India,
Indonesia, Iran and Pakistan). In 2005 approximately 68% of oil
production sold was supplied to Eni&#146;s Refining &amp;
Marketing segment and approximately 29% 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 eight
depleted fields, which is 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">GAS &amp; POWER: 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 87% 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 4,300 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 30,700-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 50.05%), that was constituted in accordance with Law Decree
No. 164/2000, owns the pipelines network used by Eni. Snam Rete
Gas, a company listed on the Italian stock exchange, engages in
natural gas transportation activities also for other operators of
the segment. Following the merging of Italgas Pi&#249;, Eni supply
natural gas directly to approximately 5 million customers in the
residential and commercial segment. Through Italgas (Eni 100%),
Eni is engaged in domestic distribution of natural gas in Italy
through an approximately 48,000-kilometer long network.</font></p>

<p><font size="2">Eni is engaged in distribution and sale of
natural gas to residential and commercial customers outside
Italy, in Argentina through Distribuidora de Gas Cuyana, in
Hungary through Tig&#225;z 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="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">total free
        market after 2003;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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. In 2005 Eni&#146;s
        presence in the Italian natural gas market was in
        accordance with the above limitations;</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">tariffs for
        transport infrastructure, storage, use of LNG terminals
        and distribution networks are set by the Authority for
        Electricity and Gas; and</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">third parties
        are allowed to access natural gas infrastructure
        according to set conditions.</font></td>
    </tr>
</table>

<p><font size="2">Eni through EniPower SpA (Eni 100%) and
subsidiaries is engaged managing Eni&#146;s electricity business
at the power plants located in the Ferrera Erbognone, Ravenna,
Livorno, Taranto, Mantova, Brindisi and Ferrara industrial sites
with installed capacity of 4.5 gigawatt and a production sold of
22.77 terawatthours. The demand for gas and fuel oils of
EniPower&#146;s stations is met by Eni supplies.</font></p>

<p><font size="2">REFINING &amp; MARKETING: 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 56% of crude oil sold is
purchased from Eni&#146;s Exploration &amp; Production segment,
the rest is purchased from producing countries pursuant to
purchase contracts (22%) and in international spot markets (22%),
while the remainder is obtained. Approximately 58% of the
purchased crude oil is refined. 32% of oil refined derives from
the production of Eni&#146;s Exploration &amp; Production
segment.</font></p>

<p><font size="2">PETROCHEMICALS: through Polimeri Europa SpA and
subsidiaries (Eni 100%), Eni engages in manufacturing of olefins,
aromatics, intermediate products, styrene and elastomers.
Eni&#146;s petrochemicals production is concentrated in Italy,
the other operations being primarily in Western Europe.
Approximately 23% 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">OILFIELD SERVICES CONSTRUCTION AND ENGINEERING:
through Saipem SpA (Eni 43%), a company listed on the Italian
stock exchange, and its subsidiaries, Eni is engaged in
construction and drilling services to customers in the oil and
gas industries. Through Snamprogetti SpA (Eni 100%) and
subsidiaries, Eni is a leading provider of engineering and
project management services to customers in the oil and gas and
petrochemical industries. At December 31, 2005 approximately 7%
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"><strong>Disclosure in accordance with SFAS No.
107</strong></font></p>

<p><font size="2">In accordance with FAS No. 107, fair value of
Eni&#146;s long-term debt (including the current portion)
amounted to euro 8,384 million and euro 8,437 million at December
31, 2005 and 2004, respectively.</font></p>

<p><font size="2"><b>Accounting for Suspended Well Costs</b></font></p>

<p><font size="2">Refer to </font><a
href="#33 Adjustment of the Consolidated Financial Statements to U.S. GAAP"><font
size="2">Note 33</font></a><font size="2"> &quot;Adjustment of
the Consolidated Financial Statements to U.S. GAAP&quot; 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">Effective January 1, 2005 Eni adopted Position
FAS 19-1 (FSP 19-1), &quot;Accounting for Suspended Well
Costs.&quot; FSP 19-1 amended Statement of Financial Accounting
Standards No. 19 (FAS 19), &quot;Financial Accounting and
Reporting by Oil and Gas Producing Companies&quot;. Under this
provision 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 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 2005 and 2004, 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, 2005 and 2004, are presented
based on the Company&#146;s previous accounting policy.</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="center"><font
        size="1"><b>2005</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </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="2">Beginning balance at January 1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">513</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">570</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Addition
        pending determination of proved reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">128</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">185</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Amount previously capitalized expended during
        the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(54</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Reclassification
        to wells, facilities and equipment basedon the
        determination of proved reserves </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(67</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(72</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Others reduction <sup>(*)</sup> </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">(79</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="2">Foreign
        exchange changes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">74</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"><font
        size="2">(37</font></td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="2">Ending Balance at December 31</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="8%"
        bgcolor="#EEEEEE"><font size="2">551</font></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="8%"
        bgcolor="#EEEEEE"><font size="2">513</font></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="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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Represents
        properties sales.</font></td>
    </tr>
</table>
</center></div>

<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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>2005</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="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>million euro</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>No. of Net Wells </strong><sup><strong>(*)</strong></sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>million euro</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>No. of Net Wells </strong><sup><strong>(*)</strong></sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="top" width="60%"><font size="2">&lt; 1 year</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">148</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">9.35</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">156
        </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">11.14</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">1 to 3 years</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">323</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">24.09</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">319 </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2">27.55</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">3 to 8 years</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">80</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">5.53</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">39
        </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="right" valign="top" width="9%"><font size="2">3.80</font></td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>551</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>38.97</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>513 </b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>42.49</b></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <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">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Net well is
        the sum of the fractional working interest owned in gross
        wells.</font></td>
    </tr>
</table>
</center></div>

<p><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 2005 and 2004 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="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>2005</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="61%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>million euro</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>No. of Net Wells </strong><sup><strong>(*)</strong></sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>million euro</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><strong>No. of Net Wells </strong><sup><strong>(*)</strong></sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Project with wells drilled in the past 12
        months</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>148</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>9.35</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>156 </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>11.14</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#FFFFFF"><font
        size="2"><b>Project with recent or planned exploratory
        activity</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#FFFFFF"><font size="2"><b>344</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#FFFFFF"><font size="2"><b>21.21</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#FFFFFF"><font size="2"><b>283</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#FFFFFF"><font size="2"><b>21.94</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Project with exploration activities already
        underwayor firmly planned:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><i>-
        future exploration drilling</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">159</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">9.37</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">148</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">10.29</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><i>- other exploratory activities</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">185</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">11.84</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">135</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">11.65</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Project
        with completed exploratory activity</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2"><b>59</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2"><b>8.41</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2"><b>75</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2"><b>9.41</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Project progressing towards
        commercialization/sanctioning </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">45</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">6.22</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">61</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">8.32</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Project
        waiting finalization of development facilities </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">14</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">2.19</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">14</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">1.09</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total/Number of wells at the year end </b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>551</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>38.97</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>513</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2"><b>42.49</b></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><font size="1">Net well is
        the sum of the fractional working interest owned in gross
        wells.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2">At the end of 2005 of the euro 551 million of
exploratory suspended costs, approximately euro 148 million
related to the 9.35 net wells for which the drilling was
completed in one year or less. Of the remaining euro 403 million,
related to the 29.62 net wells suspended for more than one year
since the completion of drilling, 85% was associated with
projects for which exploration activity is still ongoing.</font></p>

<p><font size="2"><b>Subsequent events</b></font></p>

<p><font size="2">The main significant events that occurred after
the balance sheet date are as follows:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">With
        effective date April 1, 2006, the Venezuelan State oil
        company Petr&#243;leos de Venezuela SA (PDVSA) unilaterally
        terminated the service contract governing activities at
        the Daci&#243;n oil field where Eni acted as a contractor,
        holding a 100% working interest. As a consequence,
        starting on the same day, operations at the Daci&#243;n oil
        field are conducted by PDVSA which replaced Eni Daci&#243;n
        BV, Eni&#146;s wholly-owned subsidiary that had been
        operating the field until that date.<br>
        Eni believes that it is entitled to a market value
        compensation for the expropriation of the Daci&#243;n field.
        On these basis, Eni is available to reach an agreement
        with the Venezuelan authorities. In case an amicable
        settlement is not possible, Eni will take any other
        action in order to protect its interest in Venezuela.
        Based on internal and external independent evaluation,
        Eni is confident that a fair market compensation will not
        be lower than the book value of the Daci&#243;n related
        assets. Accordingly, management decided not to impair the
        book value of Eni&#146;s Daci&#243;n assets. In 2005 and in
        the first quarter 2006, the Daci&#243;n field production rate
        was about 60 KBBL/d. Management expects Eni&#146;s proved
        reserves of hydrocarbons to be reduced by an amount of
        approximately 175 mmBBL corresponding to Eni&#146;s net
        proved reserves of the Daci&#243;n field as of December 31,
        2005 as a consequence of the loss of Eni&#146;s title to
        the field.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">On May 5,
        2006 the European Commission started an inquiry in order
        to verify an alleged abuse of dominant position on the
        part of Eni in violation of article 82 of the EEC Treaty
        and article 54 of the CES Agreement in the activities of
        international gas transport and wholesale and retail
        supply of gas. According to the European Commission Eni
        might have adopted commercial practices that constitute
        barriers to access to the Italian market for the
        wholesale supply of natural gas, in particular taking
        account of Eni long-term purchase contracts. In addition
        Eni also entered into long-term transport contracts which
        award Eni a majority share of transport capacity of
        certain international gaslines and, as a consequence, Eni
        may have prevented others access to infrastructure.<br>
        Officials from the European Commission have conducted
        inspections at Eni&#146;s headquarters and of certain of
        Eni&#146;s subsidiaries and collected documents.<br>
        If the existence of the alleged anti-competitive
        practices is confirmed, the European Commission could
        fine Eni.</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="3">&#149;</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">On May 25,
        2006, Eni&#146;s Annual General Shareholders Meeting
        approved a euro 2 billion increase in Eni&#146;s ongoing
        share repurchase program.</font></td>
    </tr>
</table>

<p><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>

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

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="2"><b>At
        December 31, 2004</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Proved mineral interests <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="2">9,056</font></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="2">7,192</font></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="2">6,288</font></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="2">7,198</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"><p
        align="right"><font size="2">7,698</font></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="2">37,432</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Unproved
        mineral interests</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="2">272</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="2">70</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="2">561</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="2">1,103</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="2">2,006</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Support equipment and facilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,056</font></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="2">209</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">75</font></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="2">1,625</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Incomplete
        wells and other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">662</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="2">468</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="2">1,038</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="2">397</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="2">882</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="2">3,447</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Gross Capitalized Costs</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>9,970</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="2"><b>8,988</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,605</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="2"><b>8,189</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="2"><b>9,758</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="2"><b>44,510</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Accumulated
        depreciation, depletion and amortization</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,416</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,887</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,907</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,733</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,252</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(21,195</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><strong>Net Capitalized Costs</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>3,554</strong></font></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="2"><strong>5,101</strong></font></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="2"><strong>3,698</strong></font></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="2"><strong>4,456</strong></font></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="2"><strong>6,506</strong></font></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="2"><strong>23,315</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>At
        December 31, 2005</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Proved mineral interests <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="2">9,756</font></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="2">9,321</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,733</font></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="2">8,350</font></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="2">9,463</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">45,623</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Unproved
        mineral interests</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">33</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="2">197</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="2">134</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="2">413</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="2">1,265</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="2">2,042</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Support equipment and facilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,385</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">2,036</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Incomplete
        wells and other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">657</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="2">638</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="2">728</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="2">221</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="2">1,895</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="2">4,139</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Gross Capitalized Costs</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>10,699</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="2"><b>11,541</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="2"><b>9,867</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="2"><b>9,017</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="2"><b>12,716</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="2"><b>53,840</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Accumulated
        depreciation, depletion and amortization</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,888</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5,113</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5,193</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,619</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,697</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(26,510</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Net Capitalized Costs consolidated</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,811</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="2"><b>6,428</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="2"><b>4,674</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,398</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="2"><b>8,019</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="2"><b>27,330</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Net
        Capitalized Costs affiliates and joint ventures <sup>(b)</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="2">13</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="2">66</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%"><p align="right"><font
        size="2">157</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="2">236</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Net Capitalized Costs</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,811</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="2"><b>6,441</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="2"><b>4,740</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,398</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="2"><b>8,176</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>27,566</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        capitalized costs for wells and facilities related to
        proved reserves.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

<p><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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="2"><b>Year
        ended December 31, 2003</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Proved 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="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="2">308</font></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="2">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="2">316</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Unproved
        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="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="2">125</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="2">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="2">131</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">80</font></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="2">138</font></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="2">125</font></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="2">243</font></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="2">653</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Development
        <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">449</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="2">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="2">1,268</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="2">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="2">1,454</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="2">4,563</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total costs incurred</b> <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>516</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="2"><b>1,186</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="2"><b>1,406</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="2"><b>844</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="2"><b>1,711</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="2"><b>5,663</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Year
        ended December 31, 2004</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">499</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Development
        <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">431</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="2">965</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="2">881</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="2">391</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="2">1,407</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="2">4,075</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total costs incurred</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>495</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="2"><b>1,069</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="2"><b>952</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="2"><b>457</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="2"><b>1,601</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="2"><b>4,574</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Year
        ended December 31, 2005</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Proved property acquisitions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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">&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="2">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">&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="2">99</font></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="2">134</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Unproved
        property acquisitions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13</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%"><p align="right"><font
        size="2">44</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%"><p align="right"><font
        size="2">99</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="2">156</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">45</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">75</font></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="2">127</font></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="2">264</font></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="2">664</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Development
        <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">644</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="2">960</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="2">909</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="2">528</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="2">1,396</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="2">4,437</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total costs incurred consolidated</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>721</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="2"><b>1,113</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="2"><b>1,044</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="2"><b>655</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="2"><b>1,858</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,391</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Total
        costs incurred affiliates and joint ventures <sup>(c)</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="2">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="2">22</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%"><p align="right"><font
        size="2">25</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="2">49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total costs incurred</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>721</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="2"><b>1,115</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="2"><b>1,066</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="2"><b>655</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="2"><b>1,883</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="2"><b>5,440</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes for
        assets retirement obligations pursuant to SFAS 143
        &quot;Accounting for asset retirement obligations&quot;
        of euro 84 million of costs capitalized during 2003, euro
        233 million for 2004 and euro 588 million for 2005.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><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>
    <tr>
        <td><font size="1">(c)</font></td>
        <td>&nbsp;</td>
        <td><font size="1">Starting from 2005 data related to
        affiliates and joint ventures carried on the equity
        method are included.</font></td>
    </tr>
</table>
</center></div>

<p><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="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="#FFFFFF"><font
        size="2"><b>Year ended December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="8%" 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="8%" 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="8%" 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="8%" 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="8%" 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="8%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Revenues:</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>
        <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="40%"><font size="2">- sales to
        affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,609</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="2">1,469</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="2">1,946</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="2">1,913</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="2">345</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="2">8,282</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- sales to unaffiliated entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Total
        revenues</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><b>12,204</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Operations costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(222</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(316</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(283</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(446</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(235</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,502</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(136</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(97</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(235</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(11</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(79</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(558</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(89</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(70</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(113</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(96</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(276</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(644</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">DD&amp;A
        and Provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(458</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(420</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(377</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(759</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(734</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,748</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Other income and (expenses)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(170</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(264</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(121</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(289</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(830</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Accretion
        discount (SFAS 143)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(14</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(42</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(102</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,820</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(629</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(788</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(617</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(750</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(111</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,895</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,925</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Year
        ended December 31, 2004</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Revenues:</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>
        <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="40%"><font size="2">- sales to
        affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,633</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="2">1,868</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="2">2,762</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="2">2,083</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="2">508</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="2">9,854</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- sales to unaffiliated entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Total
        revenues</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><b>14,467</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Operations costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(223</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(292</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(322</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(405</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(289</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,531</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(118</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(91</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(379</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(13</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(163</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(764</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(57</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(47</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(71</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(93</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(155</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(423</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">DD &amp; A
        and Provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(489</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(437</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(482</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(687</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(849</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,944</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Other income and (expenses)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(98</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(368</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(216</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">(208</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(793</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Accretion
        discount (SFAS 143)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(80</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,932</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(632</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(994</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(945</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(948</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(305</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,824</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4,108</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Year
        ended December 31, 2005</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Revenues:</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>
        <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="40%"><font size="2">- sales to
        affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,133</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="2">2,813</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="2">4,252</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="2">2,707</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="2">828</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="2">13,733</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">- sales to unaffiliated entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">161</font></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="2">2,579</font></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="2">394</font></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="2">889</font></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="2">2,883</font></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="2">6,906</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Total
        revenues</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>3,294</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="2"><b>5,392</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="2"><b>4,646</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="2"><b>3,596</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="2"><b>3,711</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="2"><b>20,639</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Operations costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(261</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(390</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(363</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(417</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(338</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,769</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(157</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(98</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(513</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(207</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(990</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Exploration expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(32</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(59</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(38</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(125</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(181</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(435</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">DD&amp;A
        and Provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(512</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(711</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(632</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(710</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,007</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,572</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Other income and (expenses)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(205</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(400</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(176</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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(251</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(977</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Accretion
        discount (SFAS 143)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(45</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="8%"><p align="right"><font
        size="2">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(31</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(106</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,082</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="2"><b>3,725</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="2"><b>2,909</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2,353</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="2"><b>1,721</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="2"><b>12,790</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(762</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,197</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,818</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,386</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(580</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,743</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Results of operations from E&amp;P activities
        consolidated</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,320</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="2"><b>1,528</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="2"><b>1,091</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="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,141</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="2"><b>6,047</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Results of
        operations from E&amp;P activities, affiliates and joint
        ventures <sup>(b)</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%">&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="2">6</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%"><p align="right"><font
        size="2">(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="8%"><p align="right"><font
        size="2">(13</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Total results of operations from E&amp;P
        activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,320</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="2"><b>1,528</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="2"><b>1,097</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="2"><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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,034</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        asset impairments amounting for euro 210 million for
        2003, euro 300 million for 2004 and euro 147 million for
        2005.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><i>Average sale 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="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2"><b>2003</b></font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Average
        sale prices</font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Oil and condensates, per BBL</font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE"><font size="1">($)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">24.24</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">27.14</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">27.60</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">28.37</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">21.53</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">26.29</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Natural
        gas, per KCF</font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.65</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">2.86</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">0.53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.11</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.18</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.56</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Average production costs, per BOE <sup>(1)</sup></font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.77</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.70</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">6.21</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">4.19</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">4.16</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2"><b>2004</b></font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Average sale prices</font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Oil and
        condensates, per BBL</font></td>
        <td align="right" valign="bottom" width="2%"><font
        size="1">($)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">30.98</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">35.66</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">36.32</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">36.92</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">30.79</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">34.76</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Natural gas, per KCF</font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">5.33</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">2.92</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">0.60</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.87</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.29</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.89</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Average
        production costs, per BOE <sup>(1)</sup></font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.35</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.53</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">7.70</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.73</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.50</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.92</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2"><b>2005</b></font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Average
        sale prices</font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Oil and condensates, per BBL</font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE"><font size="1">($)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">45.46</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">50.26</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">51.58</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">51.96</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">44.39</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">49.32</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><font size="2">Natural
        gas, per KCF</font></td>
        <td align="right" valign="bottom" width="2%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">6.29</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.35</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">0.79</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">5.27</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">3.71</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"><font
        size="2">4.49</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="38%" bgcolor="#EEEEEE"><font
        size="2">Average production costs, per BOE <sup>(1)</sup></font></td>
        <td align="right" valign="bottom" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">5.58</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">3.66</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">8.90</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">5.32</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">5.59</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="9%"
        bgcolor="#EEEEEE"><font size="2">5.59</font></td>
    </tr>
</table>
</center></div>

<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.</font></p>

<p><font size="2">Net proved reserves exclude royalties and
interests owned by others.</font></p>

<p><font size="2">Proved developed oil and gas 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">Eni&#146;s proved reserves have been estimated
on the basis of the applicable U.S. Securities &amp; Exchange
Commission regulation, Rule 4-10 of Regulation S-X and its
interpretations and have been disclosed in accordance with
Statement of Financial Accounting Standard No. 69. The estimates
of proved reserves, developed and undeveloped for years ended
December 31, 2002, 2003, 2004 and 2005 are based on data prepared
by Eni. Since 1991 Eni has requested qualified independent oil
engineering companies to carry out an independent evaluation</font><a
href="#F(19)"><font size="2"><sup>18</sup></font></a><font
size="2"> of its proved reserves on a rotative basis. In
particular a total of 1.64 billion boe of proved reserves, or
about 24% of Eni&#146;s total proved reserves at December 31,
2005, have been evaluated. The results of this independent
evaluation confirmed Eni&#146;s evaluations, as in previous
years. In the 2003-2005 three-year period, 84% of Eni&#146;s
total proved reserves were subject to independent evaluations.</font></p>

<p><font size="2">Eni operates under PSAs in several of the
foreign jurisdictions where it has oil and gas exploration and
production activities. Reserves of oil and natural gas to which
Eni is entitled under PSA arrangements are shown in accordance
with Eni&#146;s economic interest in the volumes of oil and
natural gas 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.</font></p>

<p><font size="2">Proved oil and gas reserves associated with
PSAs represented 46%, 51% and 48% of total proved reserves as of
year end 2003, 2004 and 2005, respectively, on an oil-equivalent
basis.</font></p>

<p><font size="2">A similar scheme to PSAs applies to Service and
&quot;Buy-Back&quot; contracts; proved reserves associated with
such contracts represented 3%, 3% and 2% of total proved reserves
on an oil-equivalent basis as of year end 2003, 2004 and 2005,
respectively.</font></p>

<p><font size="2">Oil and gas reserve quantities include: (i) oil
and natural gas quantities in excess to cost recovery which the
company has an obligation to purchase under certain PSAs with
governments or authorities whereby the company serves as producer
of reserves. In accordance with SFAS 69, paragraph 13, reserve
volumes associated with such oil and gas quantities represented
1.6%, 1.4% and 1.7% of total proved reserves as of year end 2003,
2004 and 2005 respectively, on an oil-equivalent basis; (ii)
natural gas volumes of natural gas used for own consumption and
(iii)&nbsp;volumes of natural gas held in certain Eni storage
fields in Italy. Proved reserves attributable to these fields
include: (a) the residual natural gas volumes of the reservoirs
and (b) 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 sold.</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 or downward
revision. In addition, changes in oil and natural gas prices have
an effect on the quantities of Eni&#146;s proved reserves since
estimates of reserves are based on prices and costs relative to
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 2003, 2004 and 2005.</font></p>

<p><font size="2"><i>Crude oil (including condensates and natural
gas liquids)</i></font></p>

<p><font size="1">(mmBBL)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1"><b>Proved Oil Reserves </b></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade>
        </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="2"><b>Reserves at December 31, 2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>255</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="2"><b>1,072</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="2"><b>1,022</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="2"><b>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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>936</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="2"><b>3,783</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Purchase
        of Minerals in Place</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%"><p align="right"><font
        size="2">86</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%"><p align="right"><font
        size="2">86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Revisions of Previous Estimates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">51</font></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="2">59</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">336</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Improved
        Recovery</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="2">15</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="2">16</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="2">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Extensions and Discoveries</font></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>
        <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="2">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="2">28</font></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="2">214</font></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="2">280</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(90</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(87</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(86</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">(357</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Sales of Minerals in Place</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"><p
        align="right"><font size="2">(21</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="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="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Reserves
        at December 31, 2003</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>252</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="2"><b>1,080</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="2"><b>1,038</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="2"><b>529</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="2"><b>1,239</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="2"><b>4,138</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Revisions of Previous Estimates</font></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>
        <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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(22</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(18</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Improved
        Recovery</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="2">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="2">48</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="2">4</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%"><p align="right"><font
        size="2">63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">206</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(94</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(104</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(74</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(75</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(377</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Sales of Minerals in Place</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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(25</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Reserves
        at December 31, 2004</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>225</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="2"><b>993</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="2"><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="8%"><p align="right"><font
        size="2"><b>450</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="2"><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="8%"><p align="right"><font
        size="2"><b>4,008</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Purchase of Minerals 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="2">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">&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="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="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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">33</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="2">36</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="2">(47</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">27</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="2">(88</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(39</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Improved Recovery</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="2">43</font></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="2">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="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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">87</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Extensions
        and Discoveries</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="2">26</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="2">14</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="2">21</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="2">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="2">77</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(32</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(111</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(113</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="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(83</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(404</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reclassification
        2004 affiliates and joint ventures data</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="2">(26</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="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="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(36</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Reserves at December 31, 2005 consolidated</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>228</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="2"><b>961</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="2"><b>936</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="2"><b>433</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="2"><b>1,190</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="2"><b>3,748</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2005 affiliates and joint ventures <sup>(a)</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="2">18</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="2">6</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%"><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="8%"><p align="right"><font
        size="2">25</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Reserves at December 31, 2005</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>228</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="2"><b>979</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="2"><b>942</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="2"><b>433</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="2"><b>1,191</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="2"><b>3,773</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="1">(mmBBL)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1"><b>Proved Developed Oil Reserves </b></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="2">Reserves
        at December 31, 2002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">168</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="2">610</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="2">554</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="2">426</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="2">483</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="2">2,241</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2003</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,447</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">174</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="2">655</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="2">588</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="2">386</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="2">668</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="2">2,471</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2005 consolidated</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">697</font></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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">353</font></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="2">564</font></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="2">2,331</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2005 affiliates and joint ventures <sup>(a)</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="2">15</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="2">3</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%"><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="8%"><p align="right"><font
        size="2">19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">712</font></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="2">571</font></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="2">353</font></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="2">565</font></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="2">2,350</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

<p><font size="2"><em>Natural gas</em></font></p>

<p><font size="1">(BCF)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1"><b>Proved Natural Gas Reserves</b></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Italy </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="2"><b>Reserves
        at December 31, 2002</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><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="8%"><p align="right"><font
        size="2"><b>18,629</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Purchase of Minerals 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="2">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="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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">443</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(768</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(123</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">172</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="2">139</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="2">325</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="2">(255</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84</font></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="2">242</font></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">&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="2">100</font></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="2">426</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(455</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(215</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(49</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(276</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,224</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Sales</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"><p
        align="right"><font size="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="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="2">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Reserves
        at December 31, 2003</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>4,166</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="2"><b>5,467</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="2"><b>1,656</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="2"><b>2,223</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="2"><b>4,496</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="2"><b>18,008</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Revisions of Previous Estimates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">814</font></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="2">129</font></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="2">75</font></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="2">84</font></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="2">1,207</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Improved
        Recovery</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="2">10</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="2">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" 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="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="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="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="2">709</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(409</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(247</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">(220</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(303</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,245</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(73</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="8%" 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="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="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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(115</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(254</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Reserves
        at December 31, 2004</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>3,818</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="2"><b>6,453</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="2"><b>1,729</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="2"><b>2,051</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="2"><b>4,384</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="2"><b>18,435</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Purchase of Minerals 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="2">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="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="2">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">&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="2">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="2">293</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">159</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="2">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(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="8%"><p align="right"><font
        size="2">(18</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(368</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(242</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Improved Recovery</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="2">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="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"><p
        align="right"><font size="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Extensions
        and Discoveries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><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="8%"><p align="right"><font
        size="2">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="2">309</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="2">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="2">56</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="2">453</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(365</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(357</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(70</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(219</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="8%" 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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,292</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reclassification
        2004 affiliates and joint ventures data</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="2">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="2">(134</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(157</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Reserves at December 31, 2005 consolidated</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,676</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,117</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="2"><b>1,965</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="2"><b>1,864</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="2"><b>3,879</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="2"><b>17,501</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2005 affiliates and joint ventures <sup>(b)</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="2">15</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="2">2</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%"><p align="right"><font
        size="2">73</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="2">90</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Reserves at December 31, 2005</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,676</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,132</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,967</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,864</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="2"><b>3,952</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="2"><b>17,591</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p align="left"><font size="1">(BCF)</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1"><b>Proved Developed Natural Gas Reserves </b></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><b>Italy </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="2">Reserves
        at December 31, 2002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">3,397</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="2">1,084</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="2">863</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="2">1,727</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="2">1,283</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="2">8,354</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2003</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2,850</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="2">1,760</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="2">924</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="2">1,845</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="2">3,122</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="2">10,501</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2005 consolidated</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,704</font></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="2">3,060</font></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="2">1,289</font></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="2">1,484</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,622</font></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="2">11,159</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Reserves
        at December 31, 2005 affiliates and joint ventures <sup>(b)</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="2">12</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="2">2</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%"><p align="right"><font
        size="2">56</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="2">70</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Reserves at December 31, 2005</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,704</font></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="2">3,072</font></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="2">1,291</font></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="2">1,484</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,678</font></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="2">11,229</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Including
        approximately 779, 747, 737 and 760 BCF held in storage
        at December 31, 2002, 2003, 2004 and 2005 respectively.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

<p><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. Year-end prices
in 2005 were $58.205 per barrel of oil. Future price changes are
considered only to the 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, 2003, 2004
and 2005 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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" height="16"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Italy</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>West Africa</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>North Sea</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Rest of World</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="9%" height="16"><p
        align="center"><font size="1"><strong>Total</strong></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade>
        </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="2"><b>At 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>
        <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="40%"><font size="2">Future
        cash inflows</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">24,641</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="2">36,484</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="2">25,074</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="2">19,590</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="2">28,505</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="2">134,294</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Future 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="2">(3,879</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(7,868</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5,847</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5,458</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,763</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(27,815</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Future
        development and abandonment costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,080</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,762</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,005</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,084</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,575</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(11,506</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Future net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>18,682</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="2"><b>24,854</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="2"><b>17,222</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="2"><b>13,048</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="2"><b>21,167</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="2"><b>94,973</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Future
        income tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,113</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(10,296</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(8,979</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(7,614</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,073</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(39,075</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><strong>Future net cash flows</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><strong>12,569</strong></font></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="2"><strong>14,558</strong></font></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="2"><strong>8,243</strong></font></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="2"><strong>5,434</strong></font></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="2"><strong>15,094</strong></font></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="2"><strong>55,898</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">10%
        discount factor</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5,056</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,646</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,130</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,872</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(7,930</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(24,634</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,513</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="2"><b>7,912</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="2"><b>5,113</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="2"><b>3,562</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="2"><b>7,164</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="2"><b>31,264</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>At
        December 31, 2004</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>
        <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="40%" bgcolor="#EEEEEE"><font
        size="2">Future cash inflows</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,582</font></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="2">40,373</font></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="2">28,395</font></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="2">20,435</font></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="2">32,619</font></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="2">150,404</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Future
        production costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,635</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(7,237</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(6,664</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(5,082</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,858</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(27,476</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Future development and abandonment costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,210</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,073</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,873</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,419</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,873</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(12,448</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Future
        net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>22,737</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="2"><b>29,063</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="2"><b>19,858</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="2"><b>13,934</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="2"><b>24,888</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="2"><b>110,480</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Future income tax</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(7,599</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(11,487</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(10,949</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8,824</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6,736</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(45,595</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><strong>Future
        net cash flows</strong></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><strong>15,138</strong></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="2"><strong>17,576</strong></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="2"><strong>8,909</strong></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="2"><strong>5,110</strong></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="2"><strong>18,152</strong></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="2"><strong>64,885</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">10% discount factor</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6,006</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(7,592</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,267</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,350</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(9,412</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(27,627</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2"><b>Standardized
        measure of discounted future net cash flows</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>9,132</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="2"><b>9,984</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="2"><b>5,642</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="2"><b>3,760</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="2"><b>8,740</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="2"><b>37,258</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>At December 31, 2005</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>
        <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="40%"><font size="2">Future
        cash inflows</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">36,203</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="2">66,100</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="2">45,952</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="2">30,835</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="2">50,590</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="2">229,680</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2">Future 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="2">(4,609</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(10,030</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(9,604</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5,632</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(6,399</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(36,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Future
        development and abandonment costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,936</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,960</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,594</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(1,774</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,059</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(15,323</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Future net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>28,658</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="2"><b>52,110</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>33,754</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="2"><b>23,429</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="2"><b>40,132</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>178,083</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Future
        income tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(9,890</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(22,744</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(21,056</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(15,225</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(12,097</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(81,012</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><b>Future net cash flows</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>18,768</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="2"><b>29,366</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="2"><b>12,698</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="2"><b>8,204</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="2"><b>28,035</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="2"><b>97,071</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">10%
        discount factor</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(7,643</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(12,095</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(4,122</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(2,155</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(15,705</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(41,720</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>11,125</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="2"><b>17,271</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="2"><b>8,576</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,049</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="2"><b>12,330</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="2"><b>55,351</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="2">Standardized
        measure of discounted future net cash flows affiliates
        and joint ventures <sup>(a)</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="2">130</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="2">127</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%"><p align="right"><font
        size="2">114</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="2">371</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="2"><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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>11,125</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="2"><b>17,401</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="2"><b>8,703</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="2"><b>6,049</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="2"><b>12,444</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="2"><b>55,722</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="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">(a)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

<p><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 2003, 2004 and 2005.</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 align="center" valign="bottom" width="9%"><p
        align="center"><font size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="9%"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="9%"><p
        align="center"><font size="1"><b>2005</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>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Beginning of year</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"><p
        align="right"><font size="2"><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="2"><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="2"><b>37,258</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Reclassification
        2004 affiliates and joint ventures data</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%"><p align="right"><font
        size="2">(357</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"><b>Beginning of year consolidated</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"><p
        align="right"><font size="2"><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="2"><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="2"><b>36,901</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">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>
        <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="60%" bgcolor="#EEEEEE"><font
        size="2">- sales, net of production costs</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="2">(10,144</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(12,172</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(17,880</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">- 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%">&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="2">(1,050</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13,031</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="2">33,372</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- 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">&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="2">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="2">2,806</font></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="2">3,527</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- changes
        in estimated future development and abandonment costs</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="2">(3,576</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,437</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(3,654</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">- 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">&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="2">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="2">4,229</font></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="2">3,865</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">-
        revisions of quantity estimates</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="2">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="2">1,658</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="2">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">- accretion of discount</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="2">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="2">5,328</font></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="2">6,573</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- net
        change in income taxes</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="2">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="2">(4,805</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(17,327</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">- purchase of reserves in-place</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="2">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>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">977</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">- sale of
        reserves in-place</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="2">(222</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">(727</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</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="60%" bgcolor="#EEEEEE"><font
        size="2">- changes in production rates and other <sup>(a)</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="2">(4,469</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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">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="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,950</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Net
        increase (decrease)</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%"><p align="right"><font
        size="2"><b>(3,216</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>5,994</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="2"><b>18,450</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>End of year consolidated</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"><p
        align="right"><font size="2"><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="2"><b>37,258</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="2"><b>55,351</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">End of
        year affiliates and joint ventures <sup>(b)</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%">&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="2">371</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>End of year</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"><p
        align="right"><font size="2"><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="2"><b>37,258</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="2"><b>55,722</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="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td><font size="1">(a)</font></td>
        <td>&nbsp;</td>
        <td><font size="1">This item relates mainly to changes in
        production timing and foreign exchange effects.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Starting from
        2005 data related to affiliates and joint ventures
        carried on the equity method are included.</font></td>
    </tr>
</table>
</center></div>

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

<hr noshade>

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

<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&#146;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&#146; meeting.</td>
    </tr>
</table>

<blockquote>
    <p><em><strong>Part II - Company Objects</strong></em></p>
</blockquote>

<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.<br>
        The company also has the object of direct and/or indirect
        management, by way of shareholdings in companies,
        agencies or businesses, of activities in the fields of
        chemicals, nuclear fuels, geothermy and renewable energy
        sources, in the sector of engineering and construction of
        industrial plants, in the mining sector, in the
        metallurgy sector, in the textile machinery sector, in
        the water sector, including derivation, drinking water,
        purification, distribution and reuse of waters; in the
        sector of environmental protection and treatment and
        disposal of waste, as well as in every other business
        activity that is instrumental, supplemental or
        complementary with the aforementioned activities.<br>
        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.<br>
        The company may perform any operations necessary or
        useful for the achievement of the company objects; by way
        of example, it may initiate operations involving real
        estate, moveable goods, trade and commerce, industry,
        finance and banking asset and liability operations, as
        well as any action that is in any way connected with the
        company objects with the exception of public fund raising
        and the performance of investment services as regulated
        by Legislative Decree No. 58 of February 24, 1998.<br>
        The company may take shareholdings and interests in other
        companies or businesses with objects similar, comparable
        or complementary to its own or those of companies in
        which it has holdings, either in Italy or abroad, and it
        may provide real and or personal bonds for its own and
        others&#146; obligations, especially guarantees. </td>
    </tr>
</table>

<blockquote>
    <p><em><strong>Part III - Capital - Shareholdings - Bonds</strong></em></p>
</blockquote>

<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
        4,005,358,876.00 (four billion five million three hundred
        and fifty-eight thousand eight hundred and seventy-six)
        represented by 4,005,358,876 (four billion five million
        three hundred and fifty-eight thousand eight 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>
</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.<br>
        Such maximum shareholding limit is calculated by taking
        into account the aggregate shareholding held by the
        controlling entity, either a physical or legal person or
        company; its directly or indirectly controlled entities,
        as well as entities controlled by the same controlling
        entity; affiliated entities as well as people related to
        the second degree by blood or marriage, also in the case
        of a legally separated spouse.<br>
        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.<br>
        Affiliation exists in the case set forth in Article 2359,
        paragraph 3 of the Civil Code as well as between entities
        that directly or indirectly, by way of subsidiaries,
        other than those managing investment funds, are bound,
        even with third parties, in agreements regarding the
        exercise of voting rights or the transfer of shares or
        portions of third companies or, in any event, in
        agreements or pacts as per Article 122 of Legislative
        Decree No. 58 of February 24, 1998 regarding third party
        companies if said agreements or pacts concern at least 10
        per cent of the voting capital, if they are listed
        companies, or 20 per cent if they are unlisted companies.<br>
        The aforementioned shareholding limit (3 per cent) is
        calculated by taking into account shares held by any
        fiduciary nominee or intermediary. Any voting rights
        attributable to voting capital held or controlled in
        excess of the maximum limit indicated in the foregoing
        cannot be exercised and the voting rights of each entity
        to whom such limit on shareholding applies are reduced in
        proportion, unless otherwise jointly provided in advance
        by the parties involved. In the event that shares
        exceeding this limit are voted, any Shareholders&#146;
        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.<br>
        Shares not entitled to vote are included in the
        determination of the quorum at shareholders&#146;
        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&#146; meeting.<br>
        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&#146; 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&#146; 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&#146; 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&#146;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&#146;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&#146;
        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&#146;
        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>

<blockquote>
    <p><b><i>Part IV - Shareholders&#146; Meeting</i></b></p>
</blockquote>

<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&#146; 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
        Financial 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 or &quot;Il Sole 24 Ore&quot;
        and other newspapers with national circulation, according
        to the current legislation and in compliance with the
        rules in force regulating the exercise of the vote by
        mail. <br>
        The Shareholders that, severally or jointly, represent at
        least one fortieth of Eni share capital, may ask, within
        five days as of the date of publication of the
        Shareholders&#146; Meeting notice, to add other items in
        the agenda. The request shall contain the matters to be
        proposed to the Shareholders&#146; Meeting. Said faculty
        may not be exercised on the matters upon which, pursuant
        to the applicable legislation, the Shareholders&#146;
        Meeting resolves on the basis of a proposal of the Board
        of Directors or on the basis of a project or report of
        the Board. The integrations accepted by the Board shall
        be published at least ten days before the
        Shareholders&#146; Meeting date, through a notice to be
        published as indicated above.</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&#146; meetings are disciplined by Eni
        S.p.A.&#146;s shareholders&#146; meeting Regulation
        approved by the ordinary shareholders&#146; 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 Chief Executive Officer;
        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&#146; 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>

<blockquote>
    <p><b><i>Part V - The Board of Directors</i></b></p>
</blockquote>

<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&#146; 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&#146;
        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&#146;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&#146; 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&#146; meeting.<br>
        Each Shareholder may present or take part in the
        presenting of only one candidate list and each candidate
        may appear in one list only or he will be ineligible.
        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. Only those Shareholders who, alone or
        together with other Shareholders, represent at least 1
        per cent of voting share capital at the ordinary
        shareholders&#146; 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&#146; meeting.<br>
        Together with each list, within the aforementioned time
        limits, statements must be presented in which each
        candidate accepts his nomination and attests, in his own
        responsibility, that causes for his ineligibility and
        incompatibility are non existing and that he possesses
        the requirements, honorability and independence
        requirements required by the norms in force for the
        Statutory Auditors included.<br>
        At least one Board member, if the Board members are no
        more than five, or at least three Board members if they
        are more than five, shall have the independence
        requirement. The independent Board members take part,
        according to the provisions set by the Board and by the
        Corporate Governance Codes issued by the companies that
        manage stock markets to which the Company adheres, to the
        Board Committees that the Board of Directors may
        establish. Said Board Committees shall have advisory and
        consulting tasks on specific items. <br>
        The Board of Directors evaluates periodically the
        independence and the honorability of its members. If
        these requirements are not present or elapse and, if the
        minimum number of independent Board members set by these
        by-laws is not met, the Board of Directors removes the
        Board member without the independence requirement and
        resolves upon his substitution.<br>
        Each person entitled to vote may vote for a candidate
        list only.<br>
        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.<br>
        In the event that more than one candidate obtains the
        same quotient, the candidate elected will be the one of
        the list that has not hitherto had a Board member elected
        or that has elected the least number of Board members.<br>
        In the event that none of the lists has yet elected a
        Board member or that all of them have elected the same
        number of Board members, the candidate from all such
        lists who has obtained the largest number of votes will
        be elected. In the event of equal list votes and equal
        quotient, a new vote will be taken by the entire
        shareholders&#146; 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&#146; 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&#146;
        meeting may, even during the Board&#146;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&#146; meeting to appoint a new Board.</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&#146;
        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&#146;s proposal, appoints a Secretary, who need
        not belong to the company.</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 Chief Executive Officer
        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. The Board of Directors&#146; 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&#146;
        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>
</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 Chief Executive Officer 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 Chief Executive Officer 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 to 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 Chief
        Executive Officer, a new Chief Executive Officer is
        simultaneously appointed.<br>
        The Board of Directors, upon proposal of the Chairman and
        in agreement with the Chief Executive Officer, 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 to Article 6, second
        Paragraph, letter d) of the by-laws. The Chairman and the
        Chief Executive Officer, 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.<br>
        Further, on proposal of the Chief Executive Officer 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. In order
        to make the appointment effective, the Board of Directors
        shall verify if the General Manager to be appointed has
        the honorability requirements set by the current
        legislation. The General Managers without said
        requirement shall be removed.<br>
        On proposal of the Chief Executive Officer and in
        agreement with the Chairman, the Board of Directors
        appoints the Manager responsible for the preparation of
        financial reporting documents and delegates powers and
        resources to him. The appointment is subject to the
        favourable opinion of the Board of Statutory Auditors.</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 Chief Executive
        Officer.</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&#146; meeting. Said resolution,
        once taken, will remain valid for subsequent business
        years until the shareholders&#146; 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>

<blockquote>
    <p><b><i>Part VI - Board of Statutory Auditors</i></b></p>
</blockquote>

<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.<br>
        Pursuant to the aforementioned Ministerial Decree, the
        matters strictly connected to those of interest of the
        Company are: companies law, business economics and
        corporate finance.<br>
        Pursuant to said Ministerial Decree, the sectors strictly
        connected with those of interest of the Company are the
        engineering and geological sectors.<br>
        Those who are already appointed effective auditor or
        supervisory board member or audit committee member in at
        least five companies with securities listed on regulated
        securities markets other than Eni S.p.A. subsidiaries may
        not be appointed Statutory Auditor; if elected, they will
        lapse.</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&#146; 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.<br>
        Lists shall be divided into two sections: the first one
        for the candidates to be appointed effective Auditors and
        the second one for the candidates to be appointed
        alternate Auditors. At least the first candidate of each
        section shall be chartered accountant and have exercised
        audit activities for not less than three years.<br>
        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.<br>
        The shareholders&#146; meeting appoints the Chairman of
        the Board of Statutory Auditors among the effective
        Auditors appointed according to Article 17.3 letter b) of
        these by-laws.<br>
        To appoint effective or alternate Auditors for any reason
        not elected according to the terms of the aforementioned
        procedure, the shareholders&#146; meeting will resolve
        with the majorities prescribed by the law.<br>
        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&#146; meeting and the Board of
        Directors. At least two effective Auditors are empowered
        to convene the shareholders&#146; meetings and at least
        one effective Auditor is empowered to convene the Board
        meetings.</td>
    </tr>
</table>

<blockquote>
    <p><b><i>Part VII - Financial Statements and Profits</i></b></p>
</blockquote>

<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>
</table>

<blockquote>
    <p><b><i>Part VIII - Winding Up and Liquidation of the
    Company</i></b></p>
</blockquote>

<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%">IIn the event the company is
        wound up, the shareholders&#146; meeting will decide the
        manner of liquidation, appoint one or more liquidators
        and determine their powers and remuneration.</td>
    </tr>
</table>

<blockquote>
    <p><b><i>Part IX - General Provisions</i></b></p>
</blockquote>

<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>

<p>&nbsp;</p>

<hr size="1" align="left" noshade>

<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 fully consolidated
subsidiaries for year 2005</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><strong>Subsidiary</strong></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="20%"><strong>Country of
        Incorporation</strong></td>
        <td valign="bottom" width="16%"><p align="right"><strong>Eni's
        interest (%) </strong><sup>(1)</sup></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">Exploration &amp;
        Production</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Caspian Sea BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Energy and Natural
        Resources (Nigeria) Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Karachaganak BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Oil Ecuador BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni A E P Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Algeria Exploration
        BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Algeria Ltd S&#224;r</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Luxembourg)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Algeria Production BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Ambalat Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni America Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Angola Exploration BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100,00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Angola Production BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Australia BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Australia Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni BB Petroleum Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Birch Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Bukat Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Bulungan BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni China BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Congo Holding BV (ex
        Eni International BV)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Congo SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Congo)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Croatia BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Daci&#243;n BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Deepwater Llc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Denmark BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Elgin/Franklin Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Energy BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Energy Ltd (in
        liquidation)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Ganal Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Grand Maghreb BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Guibsen Exploration
        BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Indonesia Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni International NA NV
        S&#224;rl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Luxembourg)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Investments Plc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Iran BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Ireland BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni JPDA 03-13 Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Krueng Mane Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Lasmo Plc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni LNS Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Marketing Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Mediterranea
        Idrocarburi SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni MEP Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni MHH Ltd (in
        liquidation)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Middle East BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Middle East Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni MOG Ltd (in
        liquidation)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Muara Bakau BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Norge AS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Norway)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni North Africa BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Oil Algeria Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Oil &amp; Gas Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100,00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Oil do Brasil SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Brazil)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Oil Holdings BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Pakistan Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Pakistan (M) Ltd
        S&#224;rl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Luxembourg)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Papalang Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Petroleum Co Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Petroleum Exploration
        Co Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Popodi Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Rapak Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Resources Ltd (in
        liquidation)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Russia BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Securities Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni TNS Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Trading BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Trinidad and Tobago
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Trinidad and Tobago)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni TTO Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Tunisia BEK BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Tunisia BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni UFL Ltd (in
        liquidation)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni UHL Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni UKCS Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni UK Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni ULT Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni ULX Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni USA Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni U.S. Operating Co Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Venezuela BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Ventures Plc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Ieoc Exploration BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Ieoc Production BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Ieoc SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Lasmo Sanga Sanga Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Bermuda)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Nigerian Agip Exploration
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Nigerian Agip Oil Co Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">S.A.R.C.I.S. - Societ&#224;
        Azionaria Ricerche Coltivazione Idrocarburi Sicilia SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Societ&#224; Petrolifera
        Italiana SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.96</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Stoccaggi Gas Italia SpA
        - Stogit SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Gas &amp; Power</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Acqua Campania SpA (ex
        Eni Acqua Campania SpA)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">49.05</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Adriaplin Podjetje za
        distribucijo zemeljskega plina doo Ljubljana</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Slovenia)</td>
        <td align="right" valign="bottom" width="12%">51.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Compagnia Napoletana di
        Illuminazione e Scaldamento col Gas SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.69</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Distribuidora de Gas
        Cuyana SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Argentina)</td>
        <td align="right" valign="bottom" width="12%">45.60</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni G&amp;P Trading BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Gas &amp; Power CH SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Switzerland)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Gas &amp; Power
        Deutschland SpA (ex Italgas Rete SpA)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Gas &amp; Power GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Germany)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Gas &amp; Power LNG
        Australia BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Gas Trading Europe BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">EniPower SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">EniPower Trading SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">EniPower Trasmissione SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Fiorentina Gas Clienti
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Fiorentina Gas SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">51.03</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Gas Brasiliano
        Distribuidora SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Brazil)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">GNL Italia SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">50.07</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Greenstream BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">75.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Inversora de Gas Cuyana
        SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Argentina)</td>
        <td align="right" valign="bottom" width="12%">76.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Italgas Hellas SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">LNG Shipping SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Napoletana Gas Clienti
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.69</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Partecipazioni
        Industriali SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snam Rete Gas SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">50.07</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Societ&#224; EniPower Ferrara
        Srl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">51.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Societ&#224; Italiana per il
        Gas pA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Soci&#233;t&#233; de Service du
        Gazoduc Transtunisien SA - Sergaz SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Tunisia)</td>
        <td align="right" valign="bottom" width="12%">66.67</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Soci&#233;t&#233; pour la
        Construction du Gazoduc Transtunisien SA - Scogat SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Tunisia)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Tig&#225;z Tisz&#225;nt&#250;li
        G&#225;zszolg&#225;ltat&#243; Z&#225;rtk&#246;r&#251;en M&#251;k&#246;d&#245;
        R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Hungary)</td>
        <td align="right" valign="bottom" width="12%">50.08</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Trans Tunisian Pipeline
        Co Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Channel Island)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Refining &amp; Marketing</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Austria GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Austria)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Benelux BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Cesk&#225; Republika Sro</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Czech Republic)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Deutschland GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Germany)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Ecuador SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Ecuador)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Espa&#241;a SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Spain)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Fran&#231;aise SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Hungaria
        R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Hungary)</td>
        <td align="right" valign="bottom" width="12%">99.41</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Lubricantes SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Argentina)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Lubricants (Pty) Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(South Africa)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Pann&#243;nia
        Kereskedelmi Kft</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Hungary)</td>
        <td align="right" valign="bottom" width="12%">99.41</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Portugal -
        Combustiveis SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Romania SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Romania)</td>
        <td align="right" valign="bottom" width="12%">99.97</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Schmiertechnik GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Germany)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Slovenija doo</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Slovenia)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Slovensko Spol Sro</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Slovakia)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agip Suisse SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Switzerland)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">AgipFuel SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">AgipRete SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">American Agip Co Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Big Bon Distribuzione SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Costiero Gas Livorno SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">65.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Ecofuel SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Portugal Investment
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Esain SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Ecuador)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Intermode Trasporti
        Logistica Integrata SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Petrolig Srl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">70.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Petroven Srl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">68.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Praoil Oleodotti Italiani
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Raffineria di Gela SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Petrochemicals</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Dunastyr
        Polisztirolgy&#225;rt&#243; Z&#225;rtkoruen Mukodo
        R&#233;szv&#233;nyt&#225;rsas&#225;g<br>
        (ex Dunastyr Polisztirolgy&#225;rt&#243; R&#233;szv&#233;nyt&#225;rsas&#225;g
        Ltd)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Hungary)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa Americas
        Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa Benelux
        SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Belgium)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa
        Elastom&#232;res France SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa France
        SAS<br>
        (ex Polimeri Europa Distribution France SAS)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Germany)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa Ib&#233;rica
        SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Spain)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Polimeri Europa UK Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Oilfield Services
        Construction and Engineering</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Oilfield Services and
        Construction</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">BOSCONGO SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Congo)</td>
        <td align="right" valign="bottom" width="12%">43.25</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">BOS Investment Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">BOS Italia Srl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">BOS - UIE Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Camom Gesellschaft fur
        Instandhaltung und Montagen GmbH</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Germany)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Camom SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Consorzio Saipem Energy
        International - Tecnomare</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">52.71</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Delong Hersent - Estudos,
        Constru&#231;&#245;es Maritimas e Participa&#231;&#245;es, Unipessoal Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Energy Maintenance
        Services SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">71.63</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Entreprise Nouvelle
        Marcellin SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">ER SAI Caspian Contractor
        Llc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Kazakhstan)</td>
        <td align="right" valign="bottom" width="12%">21.63</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">ERS - Equipment Rental
        &amp; Services BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">European Marine
        Contractors Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">European Marine
        Investments Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">European Maritime
        Commerce BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Global Petroprojects
        Services AG (ex Global Petroprojects Services AG SA Ltd)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Switzerland)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Hazira Cryogenic
        Engineering &amp; Construction Management Private Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(India)</td>
        <td align="right" valign="bottom" width="12%">23.74</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Hazira Marine Engineering
        &amp; Construction Management Private Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(India)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Intermare Sarda SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Katran-K Llc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Russia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Moss Arctic Offshore AS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Norway)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Moss Maritime AS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Norway)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Moss Maritime Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Moss Offshore AS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Norway)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Nigerian Services &amp;
        Supply Co Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Petrex SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Peru)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Petromar Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Angola)</td>
        <td align="right" valign="bottom" width="12%">30.28</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">PT Saipem Indonesia</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Indonesia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">PT Sofresid Engineering
        (ex PT Sofresid Indonesia Ll)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Indonesia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saibos Constru&#231;&#245;es
        Maritimas Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saibos Fze</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(United Arab Emirates)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saibos SAS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saigut SA De Cv</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Mexico)</td>
        <td align="right" valign="bottom" width="12%">34.61</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saimexicana SA De Cv</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Mexico)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem America Inc (ex
        Sonsub Inc)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Asia Sdn Bhd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Malaysia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Contracting
        Algerie SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Algeria)</td>
        <td align="right" valign="bottom" width="12%">43.24</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Contracting
        (Nigeria) Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">42.37</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem do Brasil
        Servi&#231;&#245;s de Petroleo Ltda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Brazil)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Energy
        International SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem FPSO SpA (ex
        Sonsub SpA)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Holding France SAS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem India Project
        Services Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(India)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem International BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Luxembourg SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Luxembourg)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem (Malaysia) Sdn Bhd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Malaysia)</td>
        <td align="right" valign="bottom" width="12%">17.56</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Mediteran Usluge
        doo</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Croatia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem (Nigeria) Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Nigeria)</td>
        <td align="right" valign="bottom" width="12%">38.68</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem - Perfura&#231;&#245;es e
        Contru&#231;&#245;es Petroliferas America do Sul Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem (Portugal) -
        Com&#233;rcio Mar&#237;timo, Sociedade Unipessoal Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem (Portugal) -
        Gest&#227;o de Participa&#231;&#245;es SGPS Sociedade Unipessoal SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Services M&#233;xico
        SA De Cv</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Mexico)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Services SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Belgium)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem Singapore Pte Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Singapore)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saipem UK Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">SAIR Constru&#231;&#245;es
        Mecanicas de Estruturas Maritimas Lda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Portugal)</td>
        <td align="right" valign="bottom" width="12%">37.20</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">SAS Port de Tanger</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Saudi Arabian Saipem Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Saudi Arabia)</td>
        <td align="right" valign="bottom" width="12%">25.96</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">SB Construction and
        Maritime Services BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Services et Equipements
        Gaziers et Petroliers SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.16</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Soci&#233;t&#233; de Construction
        d&#146;Oleoducs Snc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.16</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Soci&#233;t&#233; Nouvelle
        Technigaz SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.25</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sofresid Engineering SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sofresid SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sonsub AS</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Norway)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sonsub International Pty
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Australia)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sonsub Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Star Gulf Free Zone Co</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(United Arab Emirates)</td>
        <td align="right" valign="bottom" width="12%">43.26</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">TBE Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Egypt)</td>
        <td align="right" valign="bottom" width="12%">30.27</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Engineering</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Andromeda Consultoria
        Tecnica e Representa&#231;&#245;es Ltda</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Brazil)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Engineering &amp;
        Management Services SpA (ex Snamprogetti Services SpA)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Canada Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Canada)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti France S&#224;rl</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(France)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the United Kingdom)</td>
        <td align="right" valign="bottom" width="12%">99.99</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Lummus Gas
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Malta)</td>
        <td align="right" valign="bottom" width="12%">99.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Management
        Services SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Switzerland)</td>
        <td align="right" valign="bottom" width="12%">99.99</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Netherlands
        BV</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherland)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Saudi Arabia
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Saudi Arabia)</td>
        <td align="right" valign="bottom" width="12%">74.99</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti Sud SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Snamprogetti USA Inc</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(USA)</td>
        <td align="right" valign="bottom" width="12%">99.99</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Other activities</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Agenzia Giornalistica
        Italia SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Corporate University
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">EniTecnologie SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Ing. Luigi Conti Vecchi
        SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Servizi Aerei SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sieco SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Syndial SpA - Attivit&#224;
        Diversificate</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Tecnomare - Societ&#224; per
        lo Sviluppo delle Tecnologie Marine SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">62.16</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Corporate and financial
        companies</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">&nbsp;</td>
        <td align="right" valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni Coordination Center
        SA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Belgium)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni International Bank
        Ltd</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Bahamas)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Eni International BV (ex
        Eni Exploration BV)</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(the Netherlands)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Padana Assicurazioni SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.71</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Serfactoring SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">48.81</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Societ&#224; Finanziamenti
        Idrocarburi - Sofid - SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.61</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Societ&#224; Finanziaria Eni
        SpA - Enifin</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">100.00</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">Sofidsim - Societ&#224; di
        Intermediazione Mobiliare SpA</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">(Italy)</td>
        <td align="right" valign="bottom" width="12%">99.61</td>
    </tr>
</table>

<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">The
        percentage relates to Eni's share of net profit of the
        relevant subsidiary and coincides with the percentage of
        ownership interest both direct and indirect in the vast
        majority of cases.</font></td>
    </tr>
</table>

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

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

<hr size="1" align="left" noshade>

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

<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 Eni</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 No. 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><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>

<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 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>

<p>Date: June 21, 2006</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>
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Paolo Scaroni<br>
        Title: Chief Executive Officer</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<hr size="1" align="left" noshade>

<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, Marco Mangiagalli, 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 21, 2006</p>
</blockquote>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/MARCO MANGIAGALLI</td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Marco Mangiagalli<br>
        Title: Chief Financial Officer</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<hr size="1" align="left" noshade>

<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, 2005 (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 21, 2006</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>
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Paolo Scaroni<br>
        Title: 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>

<p>&nbsp;</p>

<p>&nbsp;</p>

<hr size="1" align="left" noshade>

<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, 2005 (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 21, 2006</p>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/MARCO MANGIAGALLI</td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade>
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Marco Mangiagalli<br>
        Title: Chief Financial 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>

<p>&nbsp;</p>

<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="2%"><a name="nota 1"><font
        size="2">(1)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">For a
        definition of margin see &quot;Glossary&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(2)"><font size="2">(2)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">From 1991 to
        2002 DeGolyer and MacNaughton, from 2003 also Ryder
        Scott.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(3)"><font size="2">(3)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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 capital invested (profit oil) after
        costs incurred are repaid by cost oil. A similar scheme
        applies to buy-back contracts.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(4)"><font size="2">(4)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="(5)"><font size="2">(5)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Of these
        27,422 square kilometers are owned through affiliates for
        initiatives in Saudi Arabia, Russia and Spain.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(6)"><font size="2">(6)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Two of these
        are not yet operational.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(7)"><font size="2">(7)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="(8)"><font size="2">(8)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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 green certificates) 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="2%"><a name="(9)"><font size="2">(9)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="(10)"><font size="2">(10)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">This
        definition applies to the term margin whenever used in
        Item 5.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(11)"><font size="2">(11)
        </font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="(12)"><font size="2">(12)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Corresponding
        to euro 0.90 per share or $2.17 per ADS converted at the
        Noon Buying Rate of 1 euro = 1.2054 U.S. dollar as at the
        payment date of June 23, 2005.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(13)"><font size="2">(13)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Corresponding
        to euro 0.45 per share or $1.09 per ADS converted at the
        Noon Buying Rate of 1 euro = 1.2148 U.S. dollar as at the
        payment date of October 27, 2005.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(14)"><font size="2">(14)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Corresponding
        to euro 0.75 per share or $1.83 per ADS converted at the
        Noon Buying Rate of 1 euro = 1.217 U.S. dollar as at the
        payment date of June 24, 2004.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(16)"><font size="2">(15)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Does not
        include listed subsidiaries, which have their own stock
        grant and stock option plans.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="(17)"><font size="2">(16)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Does not
        include listed subsidiaries, which have their own stock
        grant and stock option plans.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

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

<p><font size="3"><strong>Footnotes F pages</strong></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><a name="F(1)"><font size="2">(1)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Under the
        requirements of paragraph 5 of &quot;Preface to
        International Financial Reporting Standards&quot;, IFRS
        (International Financial Reporting Standards) represent
        the principles and the interpretations adopted by the
        International Accounting Standards Board (IASB), former
        International Accounting Standards Committee (IASC) and
        include: (i) International Financial Reporting Standards
        (IFRS); (ii) International Accounting Standards (IAS);
        (iii) the interpretations issued by International
        Financial Reporting Interpretation Committee (IFRIC) and
        by Standing Interpretation Committee (SIC) adopted by
        IASB. The name International Financial Reporting
        Standards (IFRS) has been adopted by IASB for the
        principles issued afterwards May 2003.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(2)"><font size="2">(2)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="F(3)"><font size="2">(3)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">&quot;Reversal&quot;
        means the effect taken to profit or loss of deferred tax
        assets and liabilities entered in previous years
        following the effect of the annulment of the temporary
        difference which generated them.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(4)"><font size="2">(4)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">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;. Previous Law No. 170/1970 stated:
        &quot;concessions can be renewed for ten years
        periods&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(5)"><font size="2">(5)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Of which euro
        30 million concern gas stored, recorded in fixed assets.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(6)"><font size="2">(6)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="F(7)"><font size="2">(7)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><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="2%"><a name="F(8)"><font size="2">(8)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">According to
        the requirements of the framework of international
        accounting standards, information is material if its
        omission or misstatement could influence the economic
        decisions that users make on the basis of the financial
        statements.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(9)"><font size="2">(9)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Recognition
        and evaluation criteria of exploration and production
        activities are described in the section &quot;Exploration
        and production activities&quot; below.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(10)"><font
        size="2">(10)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">International
        accounting principles do not establish specific criteria
        for hydrocarbon exploration and production activities.
        Eni continues to use the existing accounting policies for
        exploration and evaluation assets previously applied
        before the introduction of IFRS, as permitted by IFRS 6
        &quot;Exploration for and evaluation of mineral
        resources&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(11)"><font
        size="2">(11)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Given the
        uncertainties related to their payment date, employees
        termination indemnities are considered as a defined
        benefit plan.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(12)"><font
        size="2">(12)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Actuarial
        assumptions relate to, inter alia, the following
        variables: (i) future salary levels; (ii) the mortality
        rate of employees; (iii) personnel turnover; (iv) the
        percentage of plan participants with dependents who are
        eligible to receive benefits (e.g. spouses and dependent
        children); (v) for medical plans, the frequency of claims
        and future medical costs; and (vi) interest rates.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(13)"><font
        size="2">(13)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">For stock
        grants, the period between the date of the award and the
        date of assignation of stock; for stock options, period
        between the date of the award and the date on which the
        option can be exercised.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(14)"><font
        size="2">(14)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Does not
        include listed subsidiaries, which have their own stock
        grant plans.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(15)"><font
        size="2">(15)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Does not
        include listed subsidiaries, which have their own stock
        grant plans.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(16)"><font
        size="2">(16)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">There are no
        material differences between the accounting principles
        approved by the European Commission and the ones issued
        by IASB in respect of these Financial Statements.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(17)"><font
        size="2">(17)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">Eni adopted
        the requirements of SEC which permit to the companies
        that apply IFRS accounting principles to include
        comparative figures of one prior period.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><a name="F(19)"><font
        size="2">(18)</font></a></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="2">From 1991 to
        2002 DeGolyer and MacNaughton, from 2003 also Ryder Scott
        Company.</font></td>
    </tr>
</table>

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