ENI SPA | CIK:0001002242 |

Filed: 4/13/2018

Entity registrant name: ENI SPA (CIK: 0001002242)

Generator: Unknown

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ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory

47 Transactions with related parties

In the ordinary course of its business, Eni enters into transactions regarding:

(a)

exchange of goods, provision of services and financing with joint ventures, associates and non-consolidated subsidiaries;

(b)

exchange of goods and provision of services with entities controlled by the Italian Government;

(c)

exchange of goods and provision of services with companies related to Eni SpA through members of the Board of Directors. Most of these transactions are exempt from the application of the Eni internal procedure of Eni “Transactions involving interests of Directors and Statutory Auditors and transactions with related parties” pursuant to the Consob Regulation, since they relate to ordinary transactions conducted at market or standard conditions, or because under the materiality threshold provided for by the procedure. The solely non-exempted transaction, that was positively examined and valued in application of the procedure, concerned branding and advertising services (for an amount of lower than €1 million) conducted with Vodafone Italia SpA related to Eni SpA through of a member of the Board of Directors; and

(d)

contributions to entities with a non-company form referable to Eni with the aim to develop solidarity, culture and research initiatives. In particular these related to: (i) Eni Foundation established by Eni as a non-profit entity with the aim of pursuing exclusively solidarity initiatives in the fields of social assistance, health, education, culture and environment, as well as research and development; and (ii) Eni Enrico Mattei Foundation established by Eni with the aim of enhancing, through studies, research and training initiatives, knowledge in the fields of economics, energy and environment, both at the national and international level.

Transactions with related parties were conducted in the interest of Eni companies and, with exception of those with entities whose aim is to develop charitable, cultural and research initiatives, are related to the ordinary course of Eni’s business.

Trade and other transactions with related parties

(€ million)	December 31, 2017						2017
	Receivables and other assets		Payables and other liabilities		Guarantees		Costs						Revenues						Other operating (expense)
Name							Goods		Services		Other		Goods		Services		Other		income
Joint ventures and associates
Petrobel Belayim Petroleum Co		86		1,205						3,168						8
Coral FLNG SA		20		4		1,094										26		2
Saipem Group		63		76		7,270				450				5		30		9
Karachaganak Petroleum Operating BV		36		121				652		295		4
Mellitah Oil & Gas BV		5		220				34		461						2
Agiba Petroleum Co		1		83						142
Unión Fenosa Gas SA						57		1				2		202						28
Other(*)		84		22				26		113		1		82		39		7
		295		1,731		8,421		713		4,629		7		289		105		18		28
Unconsolidated entities controlled by Eni
Eni BTC Ltd						169
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)		77		1		5										7
Other^(*)		20		23		7		4		10				2		4		1
		97		24		181		4		10				2		11		1
		392		1,755		8,602		717		4,639		7		291		116		19		28
Entities controlled by the Government
Enel Group		123		187				19		603				94		70				285
Snam Group		187		351				68		1,153				83		2
Terna Group		35		31				84		122		6		98		56				15
GSE - Gestore Servizi Energetici		69		219				303		6		197		470		211		21		2
Italgas Group		14		180		1				678		3		8		10
Other^(*)		50		21				2		27		9		11		4		1		1
		478		989		1		476		2,589		215		764		353		22		303
Pension funds and foundations		1		2								25		1
Groupement Sonatrach – Agip «GSA» e Organe Conjoint des Opérations «OC SH/FCP»		39		145				19		484		27				42
		910		2,891		8,603		1,212		7,712		274		1,056		511		41		331

_________

(€ million)	December 31, 2016						2016
	Receivables and other assets		Payables and other liabilities		Guarantees		Costs						Revenues						Other operating (expense)
Name							Goods		Services		Other		Goods		Services		Other		income
Joint ventures and associates
Agiba Petroleum Co		1		50						156
Saipem Group		64		224		8,094				775		6		9		37		5
Karachaganak Petroleum Operating BV		47		187				573		333		12		7		1		19
Mellitah Oil & Gas BV		7		134				5		472
Petrobel Belayim Petroleum Co		225		532						1,940								2
Unión Fenosa Gas SA						57								93				1
Other^(*)		114		25		1		32		113				86		44		13		47
		458		1,152		8,152		610		3,789		18		195		82		40		47
Unconsolidated entities controlled by Eni
Eni BTC Ltd						192
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)		69		1		3										2
Other^(*)		9		16		51		4		4				6		2		2
		78		17		246		4		4				6		4		2
		536		1,169		8,398		614		3,793		18		201		86		42		47
Entities controlled by the Government
Enel Group		151		254				28		780				88		95		18		182
Snam Group		44		541		1		125		1,902		5		99		14
Terna Group		33		46				60		165		7		61		56				13
GSE - Gestore Servizi Energetici		58		32				206		5		32		344		68		2		5
Italgas Group		54		1						4
Other^(*)		43		24						37				62		6
		383		898		1		419		2,893		44		654		239		20		200
Pension funds and foundations				2						4		28
Groupement Sonatrach – Agip «GSA» e Organe Conjoint des Opérations «OC SH/FCP»		176		331				5		413		5				58		12
		1,095		2,400		8,399		1,038		7,103		95		855		383		74		247

(*) Each individual amount included herein was lower than €50 million.

(€ million)	December 31, 2015						2015
	Receivables and other assets		Payables and other liabilities		Guarantees		Costs						Revenues						Other operating (expense)
Name							Goods		Services		Other		Goods		Services		Other		income
Continuing operations
Joint ventures and associates
Agiba Petroleum Co		6		60						187
CEPAV (Consorzio Eni per l’Alta Velocità) Due				1
CEPAV (Consorzio Eni per l’Alta Velocità) Uno						6,122
Karachaganak Petroleum Operating BV		48		171				748		403		8				10
Mellitah Oil & Gas BV		8		16				46		339						19
Petrobel Belayim Petroleum Co		16		183						543
Petromar Lda		2				6
Unión Fenosa Gas SA		1				57														(4	)
Other^(*)		118		42				27		124		1		60		70		37		(2	)
		199		473		6,185		821		1,596		9		60		99		37		(6	)
Unconsolidated entities controlled by Eni
Eni México S. de RL de CV						101
Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation)		65		1		9										3
Other^(*)		17		19		3		2		2				4		2		2
		82		20		113		2		2				4		5		2
		281		493		6,298		823		1,598		9		64		104		39		(6	)
Entities controlled by the Government
Enel Group		138		203						1,063				196		134				90
Snam Group		144		522		3		137		2,014		5		249		24		1
Terna Group		18		42				109		125		14		77		19		29		12
GSE - Gestore Servizi Energetici		44		63				419		5		35		307		43
Other^(*)		22		38						56		6		29		1
		366		868		3		665		3,263		60		858		221		30		102
Pension funds and foundations		1		2						4		50
Groupement Sonatrach – Agip «GSA» e Organe Conjoint des Opérations «OC SH/FCP»		185		300						453		12		35		60
		833		1,663		6,301		1,488		5,318		131		957		385		69		96
Discontinued operations
Joint ventures and associates
CEPAV (Consorzio Eni per l’Alta Velocità) Due		60		99		68				101						145
CEPAV (Consorzio Eni per l’Alta Velocità) Uno		9		3						3						1
KWANDA - Suporte Logistico Lda		69		10								5				8
Mellitah Oil & Gas BV		9								7
Petrobel Belayim Petroleum Co		19														86
Petromar Lda		97		16						16						45
Other^(*)		14		27				10		54				1		21		1
		277		155		68		10		181		5		1		306		1
Unconsolidated entities controlled by Eni
Other^(*)		1		1						2
		1		1						2
Entities controlled by the Government
Snam Group		25		46												36
Other^(*)				5						3
		25		51						3						36
Pension funds and foundations												1
		303		207		68		10		186		6		1		342		1
		1,136		1,870		6,369		1,498		5,504		137		958		727		70		96

___________

(*)

Each individual amount included herein was lower than €50 million.

The most significant transactions with joint ventures, associates and unconsolidated subsidiaries concerned:

•

guarantees issued on a pro-quota basis granted to Coral FLNG SA on behalf of the Consortium TJS for the contractual obligations assumed following the award of the EPCIC contract for the construction of a floating gas liquefaction plant (for more information see note 38 — Guarantees, commitments and risks);

•

Eni’s share of expenses incurred to develop oil fields from Agiba Petroleum Co, Karachaganak Petroleum Operating BV, Mellitah Oil & Gas BV, Petrobel Belayim Petroleum Co, Groupement Sonatrach — Agip «GSA», Organe Conjoint des Opérations «OC SH/FCP» and, only for Karachaganak Petroleum Operating BV, purchase of oil products by Eni Trading & Shipping SpA; services charged to Eni’s associates are invoiced on the basis of incurred costs;

•

engineering, construction and drilling services by the Saipem Group mainly for the Exploration& Production segment and guarantees issued by Eni SpA relating to bid bonds and performance bonds;

•

performance guarantees given on behalf of Unión Fenosa Gas SA in relation to contractual commitments related to the results of operations and sales of LNG;

•

a guarantee issued in relation to the construction of an oil pipeline on behalf of Eni BTC Ltd; and

•

services for environmental restoration to Industria Siciliana Acido Fosforico — ISAF SpA (in liquidation).

The most significant transactions with entities controlled by the Italian Government concerned:

•

sale of fuel, sale and purchase of gas, acquisition of power distribution services and fair value of derivative financial instruments with Enel Group;

•

acquisition of natural gas transportation, distribution and storage services with the Snam Group and the Italgas Group on the basis of tariffs set by the Italian Regulatory Authority for Energy, Networks and Environment and purchase and sale of natural gas for granting the balancing of the system on the basis of prices referred to the quotations of the main energy commodities;

•

sale and purchase of electricity, the acquisition of domestic electricity transmission service on the basis of prices referred to the quotations of the main energy commodities, and derivatives on commodities entered to hedge the price risk related to the utilization of transport capacity rights with the Terna Group;

•

sale and purchase of electricity, gas, environmental certificates and sale of oil products with GSE — Gestore Servizi Energetici for the setting-up of a specific stock held by the Organismo Centrale di Stoccaggio Italiano (OCSIT) according to the Legislative Decree No. 249/2012.

Transactions with pension funds and foundation concerned:

•

provisions to pension funds of €34 million; and

•

contributions and service provisions to Eni Foundation of €2 million and to Eni Enrico Mattei Foundation for €4 million.

Financing transactions with related parties

(€ million)
	December 31, 2017						2017
Name	Receivables		Payables		Guarantees		Charges		Gains
Continuing operations
Joint ventures and associates
Coral South FLNG D MCC						1,334
Cardón IV SA		955								86
Angola LNG Ltd						233
Matrìca SpA										9
Shatskmorneftegaz Sarl		101								6
Société Centrale Electrique du Congo SA		66		43
Saipem Group				3		56				13
Coral FLNG SA		56								71
Other^(*)		48		49		2		1		5
		1,226		95		1,625		1		190
Unconsolidated entities controlled by Eni
Servizi Fondo Bombole Metano SpA		60		9						1
Eni BTC Ltd				28
Other^(*)		1		24
		61		61						1
Entities controlled by the Government
Other^(*)				8				3
				8				3
		1,287		164		1,625		4		191

__________

(*)

Each individual amount included herein was lower than €50 million.

(€ million)
	December 31, 2016						2016
Name	Receivables		Payables		Guarantees		Charges		Gains		Income from equity instruments
Continuing operations
Joint ventures and associates
Cardón IV SA		1,054								96
Matrìca SpA		125						93		9
Shatskmorneftegaz Sarl		69						13		4
Société Centrale Electrique du Congo SA		78						18
Unión Fenosa Gas SA				85
Saipem Group						82				43		27
Other^(*)		52				2		17		4
		1,378		85		84		141		156		27
Unconsolidated entities controlled by Eni
Eni BTC Ltd				54
Other^(*)		46		52				1		1
		46		106				1		1
Entities controlled by the Government
Other^(*)								3
								3
		1,424		191		84		145		157		27

___________

(*)

Each individual amount included herein was lower than €50 million.

(€ million)
	December 31, 2015						2015
Name	Receivables		Payables		Guarantees		Charges		Gains
Continuing operations
Joint ventures and associates
Cardón IV SA		1,112								65
Matrìca SpA		209						10		11
Shatskmorneftegaz Sàrl		63						21
Société Centrale Electrique du Congo SA		94
Unión Fenosa Gas SA				90
Other^(*)		52		7		12		19		5
		1,530		97		12		50		81
Unconsolidated entities controlled by Eni
Other^(*)		51		111						1
		51		111						1
Entities controlled by the Government
Other^(*)		27								1
		27								1
		1,608		208		12		50		83
Discontinued operations
Joint ventures and associates
CEPAV (Consorzio Eni per l’Alta Velocità) Due						150
Other(*)		5
		5				150
		1,613		208		162		50		83

__________

(*)

Each individual amount included herein was lower than €50 million.

The most significant transactions with joint ventures, associates and unconsolidated subsidiaries concerned:

•

a bank debt guarantee issued on behalf of Coral South FLNG DMCC (for more information see note 38 — Guarantees, commitments and risks);

•

financing loans granted to Cardón IV SA for the exploration and development activities of a gas field in Venezuela;

•

bank debt guarantees issued on behalf of Angola LNG Ltd;

•

financing loans, which were completely written down, granted to Matrìca SpA in relation to the “Green Chemistry” project at the Porto Torres plant;

•

financing loans granted to Shatskmorneftegaz Sàrl for the exploration activity of in the Black Sea and to Société Centrale Electrique du Congo SA for the construction of an electric plant in Congo;

•

residual bank debt guarantees issued on behalf of Saipem Group;

•

financing loans granted to Coral FLNG SA for the construction of a floating gas liquefaction plant in the Area 4 in Mozambique (for more information see note 38 – Guarantees, commitments and risks);

•

financing loans granted to Servizi Fondo Bombole Metano SpA for operating activities;

•

a cash deposit at Eni’s financial companies on behalf of Eni BTC Ltd.

Financial charges to related parties do not include impairments of financial receivables of € 242 million.

Impact of transactions and positions with related parties on the balance sheet, profit and loss account and statement of cash flows

The impact of transactions and positions with related parties on the balance sheet consisted of the following:

	December 31, 2017						December 31, 2016
(€ million)	Total		Related parties		Impact %		Total		Related parties		Impact %
Trade and other receivables		15,737		907		5.76		17,593		1,100		6.25
Other current assets		1,573		30		1.91		2,591		57		2.20
Other non-current financial assets		1,675		1,214		72.48		1,860		1,349		72.53
Other non-current assets		1,323		46		3.48		1,348		13		0.96
Current financial liabilities		2,242		164		7.31		3,396		191		5.62
Trade and other payables		16,748		2,808		16.77		16,703		2,289		13.70
Other current liabilities		1,515		60		3.96		2,599		88		3.39
Other non-current liabilities		1,479		23		1.56		1,768		23		1.30

The impact of transactions with related parties on the profit and loss accounts consisted of the following:

	2017								2016								2015
(€ million)	Total			Related parties			Impact %		Total			Related parties			Impact %		Total			Related parties			Impact %
Continuing operations
Net sales from operations		66,919			1,567			2.34		55,762			1,238			2.22		72,286			1,342			1.86
Other income and revenues		4,058			41			1.01		931			74			7.95		1,252			69			5.51
Purchases, services and other		(52,461	)		(9,164	)		17.47		(44,124	)		(8,212	)		18.61		(56,848	)		(6,882	)		12.11
Payroll and related costs		(2,951	)		(34	)		1.15		(2,994	)		(24	)		0.80		(3,119	)		(55	)		1.76
Other operating (expense) income		(32	)		331			—		16			247			—		(485	)		96			—
Financial income		3,924			191			4.87		5,850			157			2.69		8,635			83			0.96
Financial expense		(5,886	)		(4	)		0.07		(6,232	)		(145	)		2.33		(10,104	)		(50	)		0.49
Derivative financial instruments		837								(482	)		27			—		160
Discontinued operations
Total revenues																		10,277			344			3.35
Total costs																		(12,199	)		(202	)		1.66

Main cash flows with related parties are provided below:

(€ million)	2017			2016			2015
Revenues and other income		1,608			1,312			1,411
Costs and other expenses		(5,360	)		(5,623	)		(5,786	)
Other operating income (loss)		331			247			96
Net change in trade and other receivables and liabilities		391			182			105
Net interests		187			133			82
Net cash provided from operating activities - Continuing operations		(2,843	)		(3,749	)		(4,092	)
Net cash provided from operating activities - Discontinued operations								126
Net cash provided from operating activities		(2,843	)		(3,749	)		(3,966	)
Capital expenditure in tangible and intangible assets		(3,838	)		(2,613	)		(1,151	)
Disposal of investments					463
Net change in accounts payable and receivable in relation to investments		425			252			(238	)
Change in financial receivables		298			5,650			(194	)
Net cash used in investing activities		(3,115	)		3,752			(1,583	)
Change in financial liabilities		(16	)		(192	)		13
Net cash used in financing activities		(16	)		(192	)		13
Total financial flows to related parties		(5,974	)		(189	)		(5,536	)

The impact of cash flows with related parties consisted of the following:

	2017								2016								2015
(€ million)	Total			Related parties			Impact %		Total			Related parties			Impact %		Total			Related parties			Impact %
Cash provided from operating activities		10,117			(2,843	)		—		7,673			(3,749	)		—		11,649			(3,966	)		—
Cash used in investing activities		(3,768	)		(3,115	)		82.67		(4,443	)		3,752			—		(10,923	)		(1,583	)		14.49
Cash used in financing activities		(4,595	)		(16	)		0.35		(3,651	)		(192	)		5.26		(1,351	)		13			—