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Investments | 12 Months Ended
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Dec. 31, 2017
Investments |
Disclosure of investments [text block] | 20 Investments Equity-accounted investments
|  | 2017 |  | 2016
(€ million) |  | Investments in unconsolidated entities controlled by Eni |  | Joint ventures |  | Associates |  | Total |  | Investments in unconsolidated entities controlled by Eni |  | Joint ventures |  | Associates |  | Total
Book amount at the beginning of the year |  |  | 168 |  |  |  | 2,675 |  |  |  | 1,197 |  |  |  | 4,040 |  |  |  | 175 |  |  |  | 1,275 |  |  |  | 1,403 |  |  |  | 2,853 |
Additions and subscriptions |  |  |  |  |  |  | 63 |  |  |  | 444 |  |  |  | 507 |  |  |  | 8 |  |  |  | 1,085 |  |  |  | 63 |  |  |  | 1,156 |
Divestments and reimbursements |  |  |  |  |  |  |  |  |  |  | (462 | ) |  |  | (462 | ) |  |  |  |  |  |  |  |  |  |  | (138 | ) |  |  | (138 | )
Share of profit of equity-accounted investments |  |  | 9 |  |  |  | 49 |  |  |  | 66 |  |  |  | 124 |  |  |  | 10 |  |  |  | 50 |  |  |  | 17 |  |  |  | 77 |
Share of loss of equity-accounted investments |  |  | (7 | ) |  |  | (340 | ) |  |  | (6 | ) |  |  | (353 | ) |  |  | (8 | ) |  |  | (208 | ) |  |  | (154 | ) |  |  | (370 | )
Deduction for dividends |  |  | (32 | ) |  |  | (41 | ) |  |  | (13 | ) |  |  | (86 | ) |  |  | (2 | ) |  |  | (45 | ) |  |  | (53 | ) |  |  | (100 | )
Changes in the scope of consolidation |  |  | 2 |  |  |  |  |  |  |  |  |  |  |  | 2 |  |  |  | 5 |  |  |  | 564 |  |  |  |  |  |  |  | 569 |
Currency translation differences |  |  | (13 | ) |  |  | (127 | ) |  |  | (128 | ) |  |  | (268 | ) |  |  | 5 |  |  |  | 12 |  |  |  | 29 |  |  |  | 46 |
Other changes |  |  | (11 | ) |  |  | 53 |  |  |  | (35 | ) |  |  | 7 |  |  |  | (25 | ) |  |  | (58 | ) |  |  | 30 |  |  |  | (53 | )
Book amount at the end of the year |  |  | 116 |  |  |  | 2,332 |  |  |  | 1,063 |  |  |  | 3,511 |  |  |  | 168 |  |  |  | 2,675 |  |  |  | 1,197 |  |  |  | 4,040 |
In 2017, acquisitions and capital increases of  €507 million mainly related to capital contributions to companies engaged in the execution of industrial projects in the interest of Eni: (i) Coral FLNG Ltd (€443 million) which is engaged in the development of a floating production and storage unit of LNG in natural gas-rich Area 4 offshore Mozambique; and (ii) Lotte Versalis Elastomers Co Ltd (€45 million) which is engaged in the production of premium elastomers in South Korea. Divestments and reimbursements of €462 million related to: (i) the sale of a 25% stake in Coral FLNG SA for €222 million following closing of the sale to ExxonMobil of 50% of the interest held by Eni in Area 4 in Mozambique; and (ii) capital reimbursements of €165 million relating to Coral FLNG SA, €48 million relating to Angola LNG Ltd and €27 million relating United Gas Derivatives Co. Eni’s share of profit of equity-accounted investments and deductions for dividends pertained to the following entities:
|  | 2017 |  | 2016
(€ million) |  | Share of profit of equity- accounted investments |  | Deduction for dividends |  | % of the investment |  | Share of profit of equity- accounted investments |  | Deduction for dividends |  | % of the investment
Angola LNG Ltd |  |  | 45 |  |  |  |  |  |  |  | 13.60 |  |  |  |  |  |  |  |  |  |  |  |  |
Eni BTC Ltd |  |  |  |  |  |  | 27 |  |  |  | 100.00 |  |  |  | 6 |  |  |  |  |  |  |  | 100.00 |
PetroJunín SA |  |  | 26 |  |  |  |  |  |  |  | 40.00 |  |  |  | 30 |  |  |  |  |  |  |  | 40.00 |
Unimar Llc |  |  | 3 |  |  |  | 24 |  |  |  | 50.00 |  |  |  |  |  |  |  | 16 |  |  |  | 50.00 |
United Gas Derivatives Co |  |  | 16 |  |  |  | 12 |  |  |  | 33.33 |  |  |  | 14 |  |  |  | 14 |  |  |  | 33.33 |
Gas Distribution Company of Thessaloniki – Thessaly SA |  |  | 9 |  |  |  | 12 |  |  |  | 49.00 |  |  |  | 10 |  |  |  | 10 |  |  |  | 49.00 |
PetroSucre SA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30 |  |  |  | 26.00 |
Other investments |  |  | 25 |  |  |  | 11 |  |  |  |  |  |  |  | 17 |  |  |  | 30 |  |  |  |  |
|  |  | 124 |  |  |  | 86 |  |  |  |  |  |  |  | 77 |  |  |  | 100 |  |  |  |  |
Eni’s share of losses of equity-accounted investments related to the following entities:
|  | 2017 |  | 2016
(€ million) |  | Share of loss of equity- accounted investments |  | % of the investment |  | Share of loss of equity- accounted investments |  | % of the investment
Cardón IV SA |  |  | 184 |  |  |  | 50.00 |  |  |  | 20 |  |  |  | 50.00 |
Saipem SpA |  |  | 101 |  |  |  | 31.00 |  |  |  | 144 |  |  |  | 30.76 |
Unión Fenosa Gas SA |  |  | 28 |  |  |  | 50.00 |  |  |  |  |  |  |  | 50.00 |
Matrìca SpA |  |  | 17 |  |  |  | 50.00 |  |  |  | 4 |  |  |  | 50.00 |
PetroSucre SA |  |  |  |  |  |  |  |  |  |  | 92 |  |  |  | 26.00 |
Angola LNG Ltd |  |  |  |  |  |  |  |  |  |  | 62 |  |  |  | 13.60 |
PetroBicentenario SA |  |  |  |  |  |  |  |  |  |  | 26 |  |  |  | 40.00 |
Other investments |  |  | 23 |  |  |  |  |  |  |  | 22 |  |  |  |  |
|  |  | 353 |  |  |  |  |  |  |  | 370 |  |  |  |  |
Considering risks and uncertainties in connection with the financial outlook of Venezuela, the Company assessed the recoverability of the book value of two equity-accounted entities that are currently engaged in the execution of oil&gas projects in the Country. The two projects are the development of the Perla offshore gas field, operated by the local company Cardón IV, a joint venture with another international oil company, and of the PetroJunín crude oil onshore field, operated by PetroJunín, a joint venture with the state oil company PDVSA under the regime of  “Empresa Mixta”. The carrying amounts before any valuation allowance of these two assets comprised current trade receivables and non-current activities, including tangible and intangible assets, equity investments and financing loans related to operations, for an amount of approximately €2 billion. To assess the recoverability of those assets, management performed a review based on empirical evidence and official statistics of the most recent financial crises of sovereign states. On this basis and considering that Eni's gas supplies are strategic and vital to the Country, in determining the recoverable value of the aforementioned assets, management carried out a risk appreciation by projecting a deferral in the timing of credit collection. Furthermore, considering the deterioration in the country's operating environment and the financial risks of recovering the invested capital, management reclassified the proved undeveloped reserves of Perla to the unproved category (315 mmBOE) in line with the US SEC rules on the recognition of proved reserves. Based on these drivers, in the 2017 financial statements management recorded impairment losses at Eni's above mentioned assets in Venezuela for an overall amount of  €758 million. The accounting under the equity method of Saipem SpA resulted in a loss of €101 million due to the recognition by the investee of restructuring costs, losses from legal proceedings and impairment losses of tangible assets mainly in the offshore drilling business which is impacted by the oil scenario. As of December 31, 2017, the net book value of Eni’s investment in Saipem of €1,413 million was aligned with the corresponding share of the equity of the investee. However, the book value exceeded by about 20% the fair value represented by the market capitalization of Saipem. This impairment indicator is reflective of investor uncertainty about the rebalancing of the fundamentals in the oil sector and the timing of recovery in capital expenditures plans by the clients of the Engineering & Construction sector. The reasonableness of the evaluation was stress-tested applying contingencies to turnover levels and contract margins that confirmed the outcomes of the assessment. Currency translation differences of  €268 million were primarily related to translation of entities accounts denominated in U.S. dollar (€189 million). Other changes related to the impairment of Unión Fenosa Gas SA for €35 million (€84 million in 2016) due to lower profitability prospects. The net carrying amount of equity-accounted investments was related to the following entities:
|  | December 31, 2017 |  | December 31, 2016
(€ million) |  | Net carrying amount |  | Number of shares held |  | % of the investment |  | Net carrying amount |  | Number of shares held |  | % of the investment
Investments in unconsolidated entities controlled by Eni |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Eni BTC Ltd |  |  | 63 |  |  |  | 34,000,000 |  |  |  | 100.00 |  |  |  | 106 |  |  |  | 34,000,000 |  |  |  | 100.00 |
Other investments (*) |  |  | 53 |  |  |  |  |  |  |  |  |  |  |  | 62 |  |  |  |  |  |  |  |  |
|  |  | 116 |  |  |  |  |  |  |  |  |  |  |  | 168 |  |  |  |  |  |  |  |  |
Joint ventures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Saipem SpA |  |  | 1,413 |  |  |  | 308,767,968 |  |  |  | 31.00 |  |  |  | 1,497 |  |  |  | 3,087,679,689 |  |  |  | 30.76 |
Unión Fenosa Gas SA |  |  | 350 |  |  |  | 273,100 |  |  |  | 50.00 |  |  |  | 434 |  |  |  | 273,100 |  |  |  | 50.00 |
PetroJunín SA |  |  | 210 |  |  |  | 96,084,000 |  |  |  | 40.00 |  |  |  | 211 |  |  |  | 96,084,000 |  |  |  | 40.00 |
Gas Distribution Company of Thessaloniki – Thessaly SA |  |  | 137 |  |  |  | 121,092,526 |  |  |  | 49.00 |  |  |  | 150 |  |  |  | 130,491,508 |  |  |  | 49.00 |
Lotte Versalis Elastomers Co Ltd |  |  | 114 |  |  |  | 30,179,999 |  |  |  | 50.00 |  |  |  | 74 |  |  |  | 19,200,000 |  |  |  | 50.00 |
AET – Raffineriebeteiligungsgesellschaft mbH |  |  | 32 |  |  |  | 1 |  |  |  | 33.33 |  |  |  |  |  |  |  |  |  |  |  |  |
Cardón IV SA |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 197 |  |  |  | 8,605 |  |  |  | 50.00 |
Unimar Llc |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42 |  |  |  | 50 |  |  |  | 50.00 |
Other investments (*) |  |  | 76 |  |  |  |  |  |  |  |  |  |  |  | 70 |  |  |  |  |  |  |  |  |
|  |  | 2,332 |  |  |  |  |  |  |  |  |  |  |  | 2,675 |  |  |  |  |  |  |  |  |
Associates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Angola LNG Ltd |  |  | 802 |  |  |  | 1,483,352,000 |  |  |  | 13.60 |  |  |  | 916 |  |  |  | 1.551.760.000 |  |  |  | 13.60 |
United Gas Derivatives Co |  |  | 82 |  |  |  | 2,600,000 |  |  |  | 33.33 |  |  |  | 117 |  |  |  | 950,000 |  |  |  | 33.33 |
Novamont SpA |  |  | 71 |  |  |  | 6,667 |  |  |  | 25.00 |  |  |  | 77 |  |  |  | 6,667 |  |  |  | 25.00 |
Coral FLNG SA |  |  | 54 |  |  |  | 2,500,000 |  |  |  | 25.00 |  |  |  |  |  |  |  |  |  |  |  |  |
AET – Raffineriebeteiligungsgesellschaft mbH |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |  |  |  | 1 |  |  |  | 33.33 |
Other investments (*) |  |  | 54 |  |  |  |  |  |  |  |  |  |  |  | 53 |  |  |  |  |  |  |  |  |
|  |  | 1,063 |  |  |  |  |  |  |  |  |  |  |  | 1,197 |  |  |  |  |  |  |  |  |
|  |  | 3,511 |  |  |  |  |  |  |  |  |  |  |  | 4,040 |  |  |  |  |  |  |  |  |
| _________ |
| (*) | Each individual amount included herein was lower than €25 million.
Equity-accounted investments by industry segment are disclosed in note 46 — Information by industry segment and by geographical area. Carrying amounts of equity-accounted investments included differences between the purchase price of the interest acquired and the book value of the corresponding fraction of net equity amounting to €70 million related to Novamont SpA for €43 million and Unión Fenosa Gas SA for €27 million. These surpluses are due to the long-term profitability outlook of these companies. As of December 31, 2017, the market value of the investments listed in stock markets was as follows:
|  | Number of shares held |  | % of the investment |  | Share price (€) |  | Market value (€ million)
Saipem SpA |  |  | 308,767,968 |  |  |  | 31.00 |  |  |  | 3.806 |  |  |  | 1,175 |
The table below sets out the provisions for losses included in the provisions for contingencies of €182 million (€151 million at December 31, 2016), primarily related to the following equity-accounted investments:
(€ million) |  | December 31, 2017 |  | December 31, 2016
Industria Siciliana Acido Fosforico – ISAF – SpA (in liquidation) |  |  | 95 |  |  |  | 95 |
Matrìca SpA |  |  | 38 |  |  |  |  |
VIC CBM Ltd |  |  | 30 |  |  |  | 34 |
PetroBicentenario SA |  |  | 12 |  |  |  | 6 |
Société Centrale Eletrique du Congo SA |  |  | 6 |  |  |  | 7 |
Other investments |  |  | 1 |  |  |  | 9 |
|  |  | 182 |  |  |  | 151 |
Other investments
|  | 2017 |  | 2016
(€ million) |  | Investments in unconsolidated entities controlled by Eni |  | Associates |  | Other investments - valued at cost |  | Total |  | Investments in unconsolidated entities controlled by Eni |  | Associates |  | Other investments - valued at fair value |  | Other investments - valued at cost |  | Total
Net book amount at the beginning of the year |  |  | 29 |  |  |  | 10 |  |  |  | 237 |  |  |  | 276 |  |  |  | 25 |  |  |  | 10 |  |  |  | 368 |  |  |  | 257 |  |  |  | 660 |
Additions and subscriptions |  |  |  |  |  |  |  |  |  |  | 3 |  |  |  | 3 |  |  |  | 5 |  |  |  | 3 |  |  |  |  |  |  |  |  |  |  |  | 8 |
Divestments and reimbursements |  |  | (6 | ) |  |  |  |  |  |  | (13 | ) |  |  | (19 | ) |  |  |  |  |  |  |  |  |  |  | (368 | ) |  |  | (31 | ) |  |  | (399 | )
Currency translation differences |  |  |  |  |  |  | (1 | ) |  |  | (22 | ) |  |  | (23 | ) |  |  |  |  |  |  | (2 | ) |  |  |  |  |  |  | 6 |  |  |  | 4 |
Other changes |  |  | (9 | ) |  |  | (4 | ) |  |  | (5 | ) |  |  | (18 | ) |  |  | (1 | ) |  |  | (1 | ) |  |  |  |  |  |  | 5 |  |  |  | 3 |
Value at the end of the year |  |  | 14 |  |  |  | 5 |  |  |  | 200 |  |  |  | 219 |  |  |  | 29 |  |  |  | 10 |  |  |  |  |  |  |  | 237 |  |  |  | 276 |
Gross book amount at the end of the year |  |  | 15 |  |  |  | 5 |  |  |  | 207 |  |  |  | 227 |  |  |  | 30 |  |  |  | 10 |  |  |  |  |  |  |  | 240 |  |  |  | 280 |
Accumulated impairment charges |  |  | 1 |  |  |  |  |  |  |  | 7 |  |  |  | 8 |  |  |  | 1 |  |  |  |  |  |  |  |  |  |  |  | 3 |  |  |  | 4 |
The net carrying amount of other investments of  €219 million (€276 million at December 31, 2016) was related to the following entities:
|  | December 31, 2017 |  | December 31, 2016
(€ million) |  | Net carrying amount |  | Number of shares held |  | % of the investment |  | Net carrying amount |  | Number of shares held |  | % of the investment
Investments in unconsolidated entities controlled by Eni (*) |  |  | 14 |  |  |  |  |  |  |  |  |  |  |  | 29 |  |  |  |  |  |  |  |  |
Associates |  |  | 5 |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  |  |  |  |  |  |  |
Other investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Nigeria LNG Ltd |  |  | 99 |  |  |  | 118,373 |  |  |  | 10.40 |  |  |  | 112 |  |  |  | 118,373 |  |  |  | 10.40 |
- Darwin LNG Pty Ltd |  |  | 32 |  |  |  | 213,995,164 |  |  |  | 10.99 |  |  |  | 49 |  |  |  | 213,995,164 |  |  |  | 10.99 |
- other (*) |  |  | 69 |  |  |  |  |  |  |  |  |  |  |  | 76 |  |  |  |  |  |  |  |  |
|  |  | 200 |  |  |  |  |  |  |  |  |  |  |  | 237 |  |  |  |  |  |  |  |  |
|  |  | 219 |  |  |  |  |  |  |  |  |  |  |  | 276 |  |  |  |  |  |  |  |  |
| __________ |
| (*) | Each individual amount included herein was lower than €25 million.
Additional information is included in note 48 — Other information about investments.

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