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v3.24.1

Provisions | 12 Months Ended
--- | ---
Dec. 31, 2023
Disclosure of other provisions [abstract] |
Provisions | 2 1 Provisions
(€ million) | Provisions for site restoration, abandonment and social projects |  |  | Environmental provisions |  |  | Provisions for litigations |  |  | Provisions for taxes other than income taxes |  |  | Loss adjustments and actuarial provisions for Eni's insurance companies |  |  | Provisions for losses on investments |  |  | Provisions for OIL insurance coverage |  |  | Other |  |  | Total |
Carrying amount at December 31, 2022 | 9,322 |  |  | 3,503 |  |  | 947 |  |  | 219 |  |  | 327 |  |  | 189 |  |  | 97 |  |  | 663 |  |  | 15,267 |
New or increased provisions | 310 |  |  | 783 |  |  | 132 |  |  | 16 |  |  | 97 |  |  | 20 |  |  | 3 |  |  | 574 |  |  | 1,935 |
Initial recognition and changes in estimates | 748 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 748 |
Accretion discount | 284 |  |  | 57 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 341 |
Reversal of utilized provisions | (731 | ) |  | (476 | ) |  | (202 | ) |  | (16 | ) |  | (161 | ) |  |  |  |  |  |  |  | (75 | ) |  | (1,661 | )
Reversal of unutilized provisions | (5 | ) |  | (224 | ) |  | (219 | ) |  | (8 | ) |  |  |  |  | (15 | ) |  | (4 | ) |  | (41 | ) |  | (516 | )
Currency translation differences | (156 | ) |  | (2 | ) |  | (11 | ) |  | (4 | ) |  |  |  |  | (1 | ) |  |  |  |  | (4 | ) |  | (178 | )
Change in scope of consolidation | 88 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 88 |
Other changes | (390 | ) |  | (28 | ) |  | 34 |  |  | (24 | ) |  | (18 | ) |  | 15 |  |  | 9 |  |  | (89 | ) |  | (491 | )
Carrying amount at December 31, 2023 | 9,470 |  |  | 3,613 |  |  | 681 |  |  | 183 |  |  | 245 |  |  | 208 |  |  | 105 |  |  | 1,028 |  |  | 15,533 |
The decommissioning p rovision comprised: (i) for €8,027 million the present value of the estimated costs that the Company expects to incur for dismantling oil and natural gas producti on facilities at the end of the producing lives of fields, well-plugging, site clean-up and environmental restoration; (ii) for €817 million the estimated costs for social projects in the Exploration & Production segment, relating for €442 million to the estimate d costs for social projects as part of the commitments between Eni SpA and the Basilicata region in relation to the oil development program in the Val d’Agri concession area; (iii) for €547 million the estimated dismantling and restoration costs of production lines and auxiliary logistics structures of the Enilive and Refining business. In 202 3, the main changes in the decommissioning provision related to: (i) revis ion of cost estimate s relating to o il & g as assets completely written-down or no more producing for €185 million; (ii) a €92 million cost estimate for d ismantling and removing production lines and auxiliary refining logistics structures for which management assessed the absence of economic prospects in the current scenario of refined products, as well as lack of any economic options of reconversion or reuse in a decarbonisation processes; (iii) for €33 million the decommissioning of a petrochemical plant and the consequent restoration of the site. Initial recognition and changes in estimat e s were primarily recognized at assets in UK, Italy, USA and Libya. T he provision also increased due to a reductio n in discounting rates in relation to the down ward movement of the Euro yield curve. The unwinding of discount recognized through profit and loss was determined based on discount rates ranging from 2.2% to 5.4% (from -0.3% to 6.1% at December 31, 202 2). Change s in the scope of consolidation mainly refer red to Exploration & Production segment for €87 million. Main expenditures associated with decommissioning operations are expected to be incurred over a fifty-year period, with utilizations essentially starting after 12 months. Provisions for environmental risks included the estimated costs for environmental clean-up and remediation of soil and groundwater in areas owned or under concession where the Group performed in the past industrial operations that were progressively divested, shut down, dismantled or restructured. The provision was accrued because at the balance sheet date there is a legal or constructive obligation for Eni to carry out environmental clean-up and remediation and the expected costs can be estimated reliably. The provision included the expected charges associated with strict liability related to obligations of cleaning up and remediating polluted areas that met the parameters set by law at the time when the pollution occurred but presently are no more in compliance with current environmental laws and regulations, or because Eni assumed the liability borne by other operators when the Company acquired or otherwise took over site operations. The prerequisite for the recognition of these environmental costs is the evaluation of the probability of their being incurred and the possibility of estimating them reliably. P rovision s related: (i) for €283 million to remediation activities at brownfield sites in Italy and costs related to groundwater treatment s; (ii) for about €200 million to refining plants, depots, fuel distribution systems and oil pipelines; (iii) for €58 million to remediation activities at petrochemical plant s. At December 31, 20 2 3, environmental provision primarily related to Eni Rewind SpA for €2,391 million and to the Enilive and Refining business line for €739 million. Litigation provisions comprise d expected liabilities associated with legal proceedings and other matters arising from contractual claims, including arbitrations, fines and penalties due to antitrust proceedings and administrative matters. The provision was allocated on the basis of the best estimate of the existing liability at the balance sheet date and refer red to the Exploration & Production segment for €290 million. Provisions for uncertain tax matters relate d to the estimated losses that the Company expects to incur to settle tax litigations and tax claims pending with tax authorities in relation to uncertainties in applying rules in force and referred to the Exploration & Production segment for €154 million. In particular, charges mainly relate to the dispute regarding the taxation of Italian local administrations on Eni offshore platforms located in common territorial waters. Loss adjustments and actuarial provisions of Eni’s insurance company Eni Insurance DAC represented the estimated liabilities accru ed on the basis for third party claims. Against such liability w ere recorded receivables for €38 million towards insurance companies for reinsurance contracts. Provisions for losses on investments included provisions relating to investments whose loss exceeds equity and primarily related to Industria Siciliana Acido Fosforico - ISAF - SpA (in liquida tion) for €168 million. Provisions for the Everen insurance coverage included insurance premiums which will be charged to Eni in the next five years by the mutual insurance company in which Eni participates together with other oil companies. Based on the outlay forecasts in relation to the progress of the restoration and decommissioning activities of depleted oil assets, the short-term portion of the risk provisions amounts to approximately €1.3 billion.

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- Definition The disclosure of other provisions. [Refer: Other provisions] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 37 -IssueDate 2023-01-01 -Paragraph 84 -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=37&code=ifrs-tx-2023-en-r&anchor=para_84&doctype=Standard -URIDate 2023-03-23 + Details
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