SECURITIES AND EXCHANGE COMMISSION

Form 6-K

REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of November, 2004

Eni S.p.A.

Piazzale Enrico Mattei 1 — 00144 Rome, Italy
(Address of principal executive offices)

     (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F þ                    Form 40-F o

     (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)

Yes o                    No þ

     (If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):               )

TABLE OF CONTENTS

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

Date: November 30, 2004

PRESS RELEASE

ENI: Third Quarter Report as of September 30, 2004

2004 THIRD QUARTER
Net income: euro 1.7 billion, up 75%
Operating income: euro 3 billion, up 57%
Hydrocarbon production: 1.54 million boepd, down 0.7%

2004 NINE MONTHS
Net income: euro 5.1 billion, up 26%
Operating income: euro 8.8 billion, up 25%
Hydrocarbon production: 1.60 million boepd, up 4%

Eni’s Board of Directors examined today Eni’s third quarter report as of September 30, 2004. The first nine months of 2004 show net income of euro 5,094 million, a euro 1,049 million increase over the first nine months of 2003, up 25.9%, due to a positive operating performance (up euro 1,760 million), generated in particular in the core business of oil and natural gas, partly offset by lower margins on natural gas sales and higher income taxes (euro 821 million).

In the first nine months of 2004 daily hydrocarbon production amounted to 1,598,000 boe¹ (oil and condensates 1,015,000 barrels, natural gas 583,000 boe) increasing by 61,000 boe, up 4% over the first nine months of 2003, due to: (i) production increases mainly in Nigeria, Pakistan, Venezuela, Kazakhstan, Angola and Egypt; (ii) the start-up of new fields in Angola, Australia, Nigeria and Libya. These increases were partly offset by: (i) declines in mature fields mainly in Italy, the United Kingdom and the United States; (ii) lower production entitlements (31,000 boe) in Production Sharing Agreements related to higher international oil prices²; (iii) the effect of the divestment of assets. The share of production outside Italy was 83% (80% in the first nine months of 2003).

Operating income for the first nine months of 2004 totaled euro 8,769 million, an increase of euro 1,760 million over the first nine months of 2003, up 25.1%, due in

particular to increases registered in the: (i) Exploration & Production segment (euro 1,352 million, up 31%) related essentially to an increase in international oil prices in dollars (Brent prices were up 26.6%)³, higher hydrocarbon production sold (15.1 million boe, up 3.7%) and net gains on the divestment of mineral assets (euro 306 million). These positive factors were offset in part by the effects of the 10.4% depreciation of the dollar over the euro (approximately euro 660 million and partly due to the conversion of financial statements of subsidiaries with currencies other than the euro); (ii) Petrochemical segment (euro 234 million) related to a recovery in margins, also due to efficiency improvement actions, and to the fact that in the first nine months of 2003 plant and stocks writedowns were recognized for euro 110 million; (iii) Gas & Power segment (euro 124 million, up 5%) due mainly to higher volumes of natural gas sold (5.28 billion cubic meters, including own consumption, up 10.5%) in particular outside Italy and higher volumes of electricity sold (5.97 terawatthour, up 162.7%), whose effects were offset in part by lower margins on natural gas sales; (iv) Refining & Marketing segment (euro 79 million, up 16.6%) related essentially to an improved refining scenario (margin on Brent was up 42.5%), higher intake processing on wholly-owned refineries and higher sales on retail markets in the rest of Europe, whose effects were offset in part by lower commercial margins on retail markets in Italy and the rest of Europe and the effect of the depreciation of the dollar over the euro.

Net sales from operations of the first nine months of 2004 amounted to euro 41,925 million, representing a euro 4,072 million increase over the first nine months of 2003, up 10.8%, due essentially to higher oil and refined products prices in dollars, higher petrochemical prices and higher volumes sold in Eni’s main operating segments, whose effects were partially offset by the conversion of financial statements of subsidiaries with currency other than the euro (approximately euro 820 million).

Net borrowings at September 30, 2004 amounted to euro 11,187 million, a euro 2,356 million decline over December 31, 2003, due to cash flow generated by operating activities, affected also by seasonality factors, and cash from disposals (euro 1,568 million). These flows were offset in part by: (i) financial requirements for capital expenditure and investments (euro 5,613 million); the payment of dividends for 2003 (euro 3,077 million, of which 2,828 by Eni SpA); (ii) the effects of changes in consolidation (euro 351 million) and of the conversion of financial statements of subsidiaries denominated in currencies other than the euro (overall approximately euro 210 million).

Capital expenditure amounted to euro 5,462 million (euro 6,115 million in the first nine months of 2003) and concerned mainly: (i) development of hydrocarbons fields (euro 3,302 million) in particular in Libya, Iran, Angola, Italy, Kazakhstan and Nigeria and exploration activity (euro 321 million); (ii) development and maintenance of Eni’s natural gas transport network and distribution network in Italy (euro 560 million); (iii) the construction of the tar gasification plant at the Sannazzaro refinery, actions on refineries in order to adjust automotive fuel characteristics to the new specifications decided by the

European Union and upgrade of the distribution network in Italy and in the rest of Europe (overall euro 391 million); (iv) the continuation of the plan of power station construction (euro 304 million).

***

Eni’s net income for the third quarter of 2004 totaled euro 1,670 million, with a euro 715 million increase over the third quarter of 2003, up 74.9%, due essentially to an increase in operating income (euro 1,090 million), whose effects were offset in part by: (i) higher income taxes (euro 271 million); (ii) the negative change in the balance of net extraordinary income/expense (euro 164 million), related in particular to higher environmental charges.

Operating income for the third quarter of 2004 (euro 2,987 million) increased by 57.5% over the third quarter of 2003 due in particular to increases recorded in the:

In the third quarter of 2004 daily hydrocarbon production amounted to 1,545,000 boe decreasing by 11,000 boe, or 0.7%, over the third quarter of 2003, due essentially to lower production entitlements in PSAs (52,000 boe).

***

San Donato Milanese, November 10, 2004

This press release is available on the Eni Internet site: “www.eni.it”.

The integral text of Eni’s Report on the Third Quarter of 2004 (unaudited) will be published at 6 pm.

Report on the third quarter of 2004: Selected consolidated financial data

-1-

Special items

Information on net income and operating income before special items is not envisaged by either Italian and U.S. GAAP, but Eni provides it with the intent to allow financial analysts to evaluate EniÕs trading performance on the basis of their forecasting models.

(million €)

-2-

Report on the
Third Quarter
of
2004

contents

November 10, 2004

Due to the seasonality in demand for natural gas and certain refined products and the changes in a number of external factors affecting Eni’s operations, such as prices and margins of hydrocarbons and refined products, Eni’s results of operations and changes in average net borrowings for the first nine months of the year cannot be extrapolated for the full year.

Summary operating data

Key market indicators

Basis of presentation

Eni’s accounts as of September 30, 2004, have been prepared in accordance with the criteria defined by the Commissione Nazionale per le Società e la Borsa (CONSOB) with a regulation contained in decision No. 11971 of May 14, 1999, as amended.

Financial information relating to income statement data are presented for the first nine months and third quarter of 2004 and for the first nine months and third quarter of 2003. Financial information relating to balance sheet data are presented: (i) at June 30 and September 30, 2004 and (ii) at December 31, 2003 and September 30, 2003. In the preparation of this report on the third quarter of 2004, the same accounting principles applied to the preparation of 2003 financial statements were adopted. Tables are comparable with those of 2003 financial statements and first half report.

The third quarter accounts are not audited.

Income statement

(million €)

Nine months

Eni’s net income for the first nine months of 2004 totaled euro 5,094 million, an increase of euro 1,049 million over the first nine months of 2003, up 25.9%, due essentially to a positive operating performance (up euro 1,760 million) generated in particular by the oil and gas business, related to the increase in oil prices in dollars (Brent up 26.6%)¹, and an increase in volumes sold, whose effects were offset in part by the effect of the depreciation of the dollar over the euro (down 10.4%). These positive factors were partly offset by higher income taxes (euro 821 million) related mainly to the increase in income before taxes (euro 1,934 million).

Operating income

(million €)

Eni’s operating income for the first nine months of 2004 totaled euro 8,769 million, an increase of euro 1,760 million over the first nine months of 2003, up 25.1%, due in particular to increases registered in the:

Third quarter

Eni’s net income for the third quarter of 2004 totaled euro 1,670 million, with a euro 715 million increase over the third quarter of 2003, up 74.9%, due essentially to an increase in operating income (euro 1,090 million), whose effects were offset in part by: (i) higher income taxes (euro 271 million); (ii) the negative change in the balance

of net extraordinary income/expense (euro 164 million), related in particular to higher environmental charges.

Operating income for the third quarter of 2004 (euro 2,987 million) increased by euro 1,090 million over the third quarter of 2003, up 57.5%, due in particular to increases recorded in the:

Quarterly operating income of oil and gas activities

Net sales from operations

(million €)

Nine months
Eni’s net sales from operations (revenues) for the first nine months of 2004 amounted to euro 41,925 million, representing a euro 4,072 million increase over the first nine months of 2003, up 10.8%, due essentially to higher oil prices in dollars, higher refined product and petrochemical prices and higher volumes sold in Eni’s main operating segments, whose effects were partially offset by the effect of the conversion of financial statements of subsidiaries with currency other than the euro (approximately euro 820 million).

Revenues generated by the Exploration & Production segment (euro 10,829 million) increased by euro 1,363 million, up 14.4%, due essentially to the increase in average realizations in dollars (oil up 26% and gas up 3.9%) and higher hydrocarbon production sold (15.1 million boe, up 3.7%), whose effects were offset in part by the appreciation of the euro over the dollar.

Revenues generated by the Gas & Power segment (euro 12,083 million) increased by euro 549 million, up 4.8%, due essentially to higher volumes sold of natural gas (3.95 billion cubic meters excluding own consumption, up 8%) and electricity (5.97 terawatthour, up 162.7%), whose effects were offset in part by lower prices for natural gas resulting from the trend in the price environment related in particular to the appreciation of the euro over the dollar.

Revenues generated by the Refining & Marketing segment (euro 19,039 million) increased by euro 2,430 million, up 14.6%, essentially due to higher prices for refined products and higher volumes sold (3.10 million tonnes, up 8.2%), whose effects were offset in part by the appreciation of the euro over the dollar.

Revenues generated by the Petrochemical segment (euro 3,915 million) increased by euro 466 million, up 13.5%, due mainly to the 13.3% increase in average products prices.

Revenues generated by the Oilfield Services, Construction and Engineering segment (euro 4,737 million) increased by euro 403 million, up 9.3%, due mainly to higher activity levels.

Revenues of the Corporate and financial companies segment (euro 557 million) increased by euro 232 million, up 71.4%, due to the concentration of activities generating overhead expenses and relating to the headquarters of Rome, San Donato Milanese and Genoa (in particular these activities relate to real estate rentals and maintenance, business support and human resources services) as well as IT, communication and other services. Costs related to these activities were previously incurred by companies and divisions of Eni.

REVENUES BY GEOGRAPHIC AREA

(million €)

Third quarter

Eni’s revenues for the third quarter of 2004 amounted to euro 13,695 million, representing a euro 1,779 million increase over the third quarter of 2003, up 14.9%, due essentially to higher prices and higher volumes sold in Eni’s main operating segments. These positive factors were partially offset by the appreciation of the euro over the dollar.

Operating expenses

(million €)

Operating expenses for the first nine months of 2004 (euro 30,579 million) increased by euro 2,940 million compared to the first nine months of 2003, up 10.6%, essentially due to: (i) higher prices for oil-based and petrochemical feedstocks; (ii) higher volumes of natural gas purchased and higher activity levels in the Oilfield Services, Construction and Engineering segment; (iii) higher volumes of petroleum products purchased for resale in the Refining & Marketing segment; (iv) higher provisions to the site restoration and abandonment reserve (euro 126 million). These increases were partially offset by the effect of the conversion of financial statements denominated in currencies other than the euro and lower purchase cost of natural gas.

Payroll and related costs (euro 2,422 million) increased by euro 62 million, up 2.6%, due mainly to an increase in unit labor cost and in the average number of employees in Italy and higher activity levels outside Italy in the Oilfield Services, Construction and Engineering segment, whose effects were offset in part by the effect of the conversion of financial statements denominated in currencies other than the euro.

As of September 30, 2004, employees were 72,503, with a decrease of 4,018 employees over December 31, 2003, down 5.3%. Outside Italy employees declined by 4,073 units due in particular to the sale of the entire interest in Agip do Brasil SA and in the petrochemical plant at Baytown in the USA and to a decline in employees in natural gas distribution activities, whose effects were offset in part by the hiring of personnel on a fixed term base in Oilfield Services, Construction and Engineering. In Italy, employees increased by 55 persons, as a consequence of the balance of new hiring (1,530 persons) and dismissals (1,423 persons), whose effect was offset in part by changes in consolidation. In particular 961 persons were hired on open end contracts, of these 499 hold a university degree.

EMPLOYEES
(units)

Depreciation, amortization and writedowns

(million €)

Depreciation, amortization and writedown charges in the first nine months of 2004 (euro 3,508 million) decreased by euro 224 million over the first nine months of 2003, down 6%.

Depreciation and amortization charges (euro 3,335 million) declined by euro 125 million due the decline registered in particular in the Exploration & Production segment (euro 150 million) related to the effect of the conversion of financial statements of subsidiaries denominated in currencies other than the euro and lower exploration costs and amortization of exploration bonuses (euro 217 million on a constant exchange rate basis), offset only in part by higher development amortization charges (euro 209 million on a constant exchange rate basis) related to higher production and expenditure aimed at maintaining production levels in mature fields in Italy, Egypt, the United Kingdom and Indonesia. Amortization charges of the Gas & Power segment increased by euro 33 million, up 8.8%, due in particular to the coming onstream of power stations at Ferrera Erbognone and Ravenna.

Writedowns (euro 173 million) concerned essentially the impairment of proved and unproved property in the Exploration & Production segment (euro 164 million). In the first nine months of 2003 writedowns (euro 272 million) concerned mainly proved and unproved property (euro 140 million) and petrochemical plants (euro 83 million).

The amortization of the difference between the purchase price and the net book value of recently purchased companies (Italgas, Bouygues Offshore and Lasmo) non allocated to assets/liabilities (goodwill) amounted to euro 111 million. Including also the amortization of the goodwill of purchased companies accounted for under the equity method (euro 93 million, in particular Galp Energia, GVS and Unión Fenosa Gas) recognized in the income statement under the item net income from investments, the overall effect of goodwill amortization amounted to euro 204 million.

Net financial expense

In the first nine months of 2004 net financial expense (euro 52 million) decreased by euro 52 million over the first nine months of 2003, down 50%, due in particular to lower interest rates on European markets (Euribor down 0.3 points) and lower average net borrowings³. These positive factors were offset in part by the negative change in the balance of exchange rate differences.

Net income from investments

Net income from investments in the first nine months of 2004 amounted to euro 189 million (euro 95 million in the first nine months of 2003) and represented the balance of income of euro 245 million and expense of euro 56 million. Income concerned essentially: (i) Eni’s share of income of subsidiaries accounted for with the equity method (euro 128 million), in particular in the Gas & Power (euro 86 million), Refining & Marketing (euro 25 million) and Oilfield Services, Construction and Engineering segments (euro 13 million); (ii) dividends received by subsidiaries accounted for at cost (euro 77 million, euro 48 million of which by Nigeria LNG Ltd — Eni’s interest 10.4%); (iii) gains on disposals (euro 35 million) concerning in particular the sale of a 2.33% interest in Nuovo Pignone Holding SpA (euro 23 million) and a 50% interest in Finifast Srl in the Refining & Marketing segment (euro 4 million). Expense concerned essentially Eni’s share of losses of subsidiaries accounted for with the equity method and at cost, relating in particular to Albacom SpA (euro 27 million), Unión Fenosa Gas SA (euro 8 million related to the writedown of the difference between purchase cost and net book value) and Galp Energia SGPS SA (euro 6 million, affected by the euro 80 million writedown of the difference between purchase cost and net book value).

Net extraordinary income

(million €)

Gains on disposals in the first nine months of 2004 amounted to euro 623 million and concerned essentially the sale of shares representing 9.054% of the share capital of Snam Rete Gas SpA to Mediobanca SpA (euro 519 million) and the sale of Eni’s 100% interest in Agip do Brasil SA, a company operating in the area of distribution of refined products and LPG (euro 94 million).

Provisions for risks and contingencies of euro 365 million concerned essentially: (i) environmental charges and charges related to the decommissioning of certain dismissed sites related to Syndial SpA (euro 170 million) and in the Refining & Marketing segment (euro 119 million); (ii) charges for contingent liabilities related to divestments carried out in the Refining & Marketing segment (euro 64 million).

Redundancy incentives amounted to euro 31 million and concerned in particular the Corporate and financial companies (euro 6 million), Refining & Marketing (euro 6 million), Gas & Power (euro 5 million) and Petrochemical segments (euro 5 million).

In the first nine months of 2003, other net extraordinary income concerned essentially the settlement paid by Edison SpA regarding the Enimont dispute (euro 200 million) and gains on the sale of service stations and minor assets in the Refining & Marketing segment (euro 105 million). Expense concerned mainly environmental charges at Syndial (euro 78 million) and in the Refining & Marketing segment (euro 31 million), as well as charges for the decommissioning of certain dismissed sites managed by Syndial (euro 52 million).

Income taxes

Income taxes (euro 3,534 million) increased by euro 821 million, up 30.3% over the first nine months of 2003, related essentially to higher income before taxes (euro 1,934 million) and the fact that in the first nine months of 2003 deferred tax assets of euro 287 million were recognized in connection with the alignment of the fiscal value of Stoccaggi Gas Italia SpA — Stogit’s assets to their conferral value. These negative factors were offset in part by: (i) the recognition of deferred tax assets of euro 259 million, that had not been recognized in 2003 consolidated financial statements concerning the timing difference between the value of stocks of Stogit in Eni’s consolidated financial statements and the tax value obtained by aligning conferral to tax values⁴; (ii) exemption from corporate income tax on gains from the sale of interests; (iii) one percentage point decline in statutory tax rate (from 34 to 33%).

Minority interests

Minority interests (euro 465 million) concerned in particular Snam Rete Gas SpA (euro 385 million) and Saipem SpA (euro 75 million). The euro 64 million increase over the first nine months of 2003 was due essentially to the increase in minority interest in Snam Rete Gas related to the sale of 9.054% of its share capital.

Consolidated balance sheet

The depreciation of the euro over other currencies, in particular the US dollar (the EUR/USD exchange rate was down 1.7% over December 31, 2003) determined with respect to 2003 year-end an estimated increase in the book value of net capital employed of about euro 340 million, in net equity of about euro 130 million and in net borrowings of about euro 210 million as a result of the conversion of financial statements denominated in currencies other than the euro at September 30, 2004.

Net borrowings at September 30, 2004 amounted to euro 11,187 million, a euro 2,356 million decline over December 31, 2003, due to cash flow generated by operating activities, affected also by seasonality factors, and cash from disposals (euro 1,568 million). These flows were offset in part by: (i) financial requirements for capital expenditure and investments (euro 5,613 million) and the payment of dividends for 2003 (euro 3,077 million, of which 2,828 by Eni SpA); (ii) the effects of changes in consolidation (euro 351 million) related in particular to the consolidation of Serfactoring SpA, and of the conversion of financial statements of subsidiaries denominated in currencies other than the euro (approximately euro 210 million).

Cash from disposals (euro 1,568 million) concerned essentially: (i) the sale of shares representing 9.054% of the share capital of Snam Rete Gas SpA to Mediobanca SpA (euro 650 million); (ii) the divestment of Agip do Brasil SA, a wholly-owned subsidiary operating in the area of distribution of refined products and LPG (euro 366 million); (iii) in the Exploration & Production segment (euro 448 million) the divestment of mineral assets in the North Sea, Italy, Mauritania and Gabon within the process of rationalization of Eni’s mineral portfolio; (iv) in the Petrochemical segment (euro 31 million) the divestment of the Baytown plant for the manufacture of elastomers; (v) the sale of a 2.33% interest in Nuovo Pignone Holding SpA (euro 28 million).

The debt to equity ratio went from 0.48 at December 31, 2003 to 0.36 at September 30, 2004.

Debts and bonds amounted to euro 13,598 million, of which 5,889 million were short-term (including portions of long-term debt expiring within 12 months of euro 806 million) and euro 7,709 million were long-term.

Net equity at September 30, 2004 (euro 31,187 million) increased by euro 2,869 over December 31, 2003, due essentially to net income before minority interest for the period (euro 5,559 million) and the effects of the conversion of financial statements of subsidiaries denominated in currencies other than the euro (approximately euro 130 million), whose effects were offset in part by the payment of dividends for 2003 (euro 3,077 million).

As part of Eni’s share buy-back program, in the period from January 1 to September 30, 2004 a total of 4.18 million own shares were purchased for a total of euro 69.3 million (on average euro 16.58 per share). From the beginning of the share buy-back program on September 1, 2000, a total of 234.76 million own shares were purchased, equal to 5.86% of Eni’s share capital, for a total of euro 3,237 million (on average euro 13.788 per share).

Capital expenditure

Capital expenditure amounted to euro 5,462 million, of which 94% related to the Exploration & Production, Gas & Power and Refining & Marketing segments.

Capital expenditure of the Exploration & Production segment in the first nine months of 2004 amounted to euro 3,648 million and concerned mainly development expenditure (euro 3,302 million, euro 3,605 million in the first nine months of 2003) mainly directed outside Italy (euro 3,036 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), Egypt, Kazakhstan and Nigeria. Expenditure in Italy (euro 266 million) concerned in particular the continuation of work for plant and infrastructure in Val d’Agri and actions for optimization and recovery in producing fields. Exploration expenditure amounted to euro 321 million (euro 501 million in the first nine months of 2003), of which about 88% was directed outside Italy. Outside Italy exploration concerned in particular the following countries: Egypt, United States, Indonesia, Kazakhstan and Venezuela. In Italy essentially the onshore of Sicily and Central Italy.

Capital expenditure in the Gas & Power segment totaled euro 1,088 million and related mainly to: (i) development and maintenance of Eni’s natural gas transmission network in Italy (euro 393 million); (ii) the continuation of the construction of combined cycle power plants (euro 304 million) in particular at Ferrera Erbognone, Brindisi and Mantova; (iii) development and maintenance of Eni’s natural gas distribution network in Italy (euro 167 million); (iv) the completion of the Greenstream gasline (euro 136 million) that started operations in October.

Capital expenditure in the Refining & Marketing segment amounted to euro 391 million and concerned essentially: (i) refining and logistics (euro 265 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 in force from January 1, 2005; (ii) the upgrade of the refined product distribution network in Italy (euro 95 million); (iii) the upgrade of the refined product distribution network in the rest of Europe and the purchase of service stations (euro 43 million, of which 17 million related to construction of new stations and purchases in particular in Spain and France).

Capital expenditure in the Oilfield Services, Construction and Engineering segment amounted to euro 137 million and concerned mainly: (i) 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; (ii) the purchase of plant and equipment required for the Sakhalin project in Russia; (iii) the construction and upgrade of logistical support means in Kazakhstan, Angola and Nigeria.

Capital expenditure in the Corporate and financial companies segment amounted to euro 107 million and concerned mainly expenditure of Serleasing SpA (euro 39 million) related in particular to IT equipment, Eni’s IT applications (euro 32 million) and the Eni Slurry Technology project (euro 31 million).

Management’s expectations of operations

Trends in 2004 of main outside variables that influence Eni’s results of operations are indicated below:

The following are the forecasts for Eni’s key production and sales metrics in 2004:

In 2004 capital expenditure is expected to amount to approximately euro 8 billion; about 93% of capital expenditure will be made in the Exploration & Production, Gas & Power and Refining & Marketing segments. The major projects concerned are: (i) in the Exploration & Production segment, the development of fields in Libya, Iran, Italy, Angola, Kazakhstan (Kashagan and Karachaganak), Egypt and Nigeria, as well as exploration; (ii) in the Gas & Power segment, upgrade and maintenance of Eni’s natural gas transmission and distribution network, as well as continuation of the plan for power station construction; (iii) in the Refining & Marketing segment the construction of a tar gasification plant at the Sannazzaro refinery, the continuation of the adjustment process at refineries in order to manufacture fuels for automotive use complying with new standards set at European level from 2005, and upgrade of the fuel distribution network in Italy and the rest of Europe.

Exploration & Production

Nine months

Operating income for the first nine months of 2004 totaled euro 5,719 million, representing a euro 1,352 million increase over the first nine months of 2003, up 31%, due mainly to: (i) higher average realizations in dollars (oil up 26%, natural gas up 3.9%); (ii) higher hydrocarbon production sold (15.1 million boe, up 3.7%); (iii) the recognition of net gains on the sale of assets, in particular in the United Kingdom, Italy, Mauritania and Gabon, as part of Eni’s mineral right portfolio rationalization program (euro 306 million); (iv) lower exploration costs and lower amortization of exploration bonuses (euro 217 million on a constant exchange rate basis). These positive factors were offset in part by: (i) the effect (approximately euro 660 million) of the appreciation of the euro over the dollar (10.4%); (ii) higher provisions to the site restoration and abandonment reserve (euro 126 million); (iii) higher production costs and higher amortizations on expenditure aimed at maintaining production levels in mature fields (in Italy, Egypt, the United Kingdom and Indonesia).

In the first nine months of 2004 daily hydrocarbon production amounted to 1,598,000 boe (oil and condensates 1,015,000 barrels, natural gas 583,000 boe) increasing by 61,000 boe over the first nine months of 2003, up 4%, due to: (i) production increases mainly in Nigeria, Pakistan, Venezuela, Kazakhstan, Angola and Egypt; (ii) the start-up of new fields in Angola, Australia, Nigeria and Libya. These increases were partly offset by: (i) declines in mature fields mainly in Italy, the United Kingdom and the United States; (ii) lower production entitlements (31,000 boe) in Production Sharing Agreements (PSA) related to higher international oil prices⁵; (iii) the effect of the divestment of assets. The share of production outside Italy was 83% (80% in the first nine months of 2003).

Daily production of oil and condensates (1,015,000 barrels) increased by 52,000 barrels over the first nine months of 2003, up 5.4%, due to increases registered in: (i) Nigeria, also due to the reaching of full production of the Abo (Eni operator with a 50.19% interest) and the Nase-EA (Eni’s interest 12.86%) fields; (ii) Venezuela, also due to the fact that in early 2003 production had been interrupted during a general strike; (iii) Angola, also due to the reaching of full production at the Xicomba field and the start-up of the Kizomba A fields in Block 15 (Eni’s interest 20%); (iv) Kazakhstan, in the Karachaganak field (Eni co-operator with a 32.5% interest) due to the start-up of exports from the Novorossysk terminal on the Russian coast of the Black Sea;

(v) Australia, reaching of full production at the Woollybutt field (Eni operator with a 65% interest) and start-up of the Bayu Undan field (Eni’s interest 12.04%); (vi) Algeria and Libya (start-up of the Elephant field, Eni’s interest 33.33%). These increases were partly offset by: (i)declines of mature fields in particular in the United Kingdom and Italy; (ii) the effect of standstills in the Val d’Agri to allow for the connection of producing fields to the fourth treatment train of the oil center; (iii) the effect of the divestment of assets.

Daily production of natural gas (583,000 boe) increased by 9,000 boe over the first nine months of 2003, up 1.6%, due essentially to increases registered in Pakistan (reaching of full production at the Bhit, Eni operator with a 40% interest, and Sawan fields, Eni’s interest 23.68%), Egypt for the increase in local demand, Kazakhstan, Norway (reaching of full production of the Mikkel field, Eni’s interest 14.9%) and Nigeria. These increases were offset in part by declines of mature fields in particular in Italy, the United Kingdom, the United States and Indonesia.

Hydrocarbon production sold amounted to 423.6 million boe. The 14.2 million boe difference over production was due essentially to own consumption of natural gas (9.9 million boe) and underlifting⁶ outside Italy for 4 million boe.

Third quarter

Operating income for the third quarter of 2004 totaled euro 2,360 million, representing a euro 903 million increase over the third quarter of 2003, up 62%, due mainly to higher average realizations in dollars (oil up 43.6%, natural gas up 23.5%) and gains from the disposal of assets in particular in the United Kingdom and Gabon (euro 182 million), whose effects were offset in part by the appreciation of the euro over the dollar (approximately euro 210 million).

In the third quarter of 2004 daily hydrocarbon production amounted to 1,545,000 boe (oil and condensates 1,003,000 barrels, natural gas 542,000 boe) declining by 11,000 boe over the third quarter of 2003, down 0.7%, due to: (i) lower entitlements in PSAs (52,000 boe); (ii) production declines in mature fields mainly in Italy, the United Kingdom and the United States; (iii) the effect of the divestment of assets; (iv) the impact of the Ivan hurricane in the Gulf of Mexico and an accident occurred at the El Temsah platform in the Nile Delta offshore. These declines were partly offset by production increases mainly in Nigeria, Pakistan, Angola, Libya, Australia and Kazakhstan and start-ups of fields in Angola, Nigeria and Libya.

Daily production of oil and condensates (1,003,000 barrels) increased by 18,000 barrels, up 1.8%, due to increases registered in particular in Nigeria, Angola, Kazakhstan, Australia and Libya, whose effects were partly offset by declines of mature fields in the United Kingdom, Italy and the United States, as well as the effects of the divestment of assets.

Daily production of natural gas (542,000 boe) decreased by 29,000 boe, down 5.1%, due to production declines of mature fields in Italy, the United Kingdom, Indonesia and the United States, whose effects were offset in part by increases registered in Pakistan, Egypt and Nigeria.