Eni Announces Sale of Snamprogetti to Saipem

Eni announces the sale of 100% of Snamprogetti to Saipem (43% owned by Eni) for a total consideration of €680 million. The transaction, which has been approved today by Eni's Board of Directors, is expected to close by the end of March 2006.

The Transaction will create a leading global oil service player in both offshore and onshore operations with 30,000 people, of which 6,500 are engineers, combining capital and engineering expertise with access to large-scale and highly complex projects.

It will bring together Eni's engineering and construction activities, generating revenue and cost synergies. Eni continues to consider Saipem a core activity.

Paolo Scaroni, CEO of Eni, commented: "Both Saipem and Snamprogetti play instrumental roles in innovation and the implementation of world-scale upstream projects. Eni has benefited greatly from these companies in terms of expertise, technology and key relationships with producing countries. The transaction is an additional step in the streamlining of our organization and will create a world leader in the engineering and construction sector. Our decision to bring these two companies together confirms that this is a core business for Eni and we want these companies to play an even greater role in Eni's future development".

The Transaction is structured as a cash acquisition and it will have no material impact on Eni's consolidated financials.

Lehman Brothers acted as Eni's financial advisor for the transaction and it rendered a financial fairness opinion to Eni.

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Added to site on 27/02/06

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