Eni says its oil and gas production will peak in 2025

Italian energy group Eni said its oil and gas production would peak in 2025 as the energy company pledged to cut its greenhouse gas emissions by 80 per cent by 2050. The latest set of climate pledges by a European energy major come as the industry is under intense pressure from investors and climate activists to take responsibility for its role in climate change. But in its new long-term strategy plan published on Friday Eni still expects production to grow 3.5 per cent each year before it plateaus. The company expects its oil output, in particular, to decline over time with gas making up 85 per cent of total production by 2050. “We have designed a strategy that combines economic sustainability with environmental sustainability,” said chief executive Claudio Descalzi. He told the Financial Times that the company had in recent years set in motion an “industrial transformation” — overhauling its portfolio of assets, changing its refineries and developing technologies that would allow it to be fit for purpose in the future. “This is not just a target about CO2 emissions,” said Mr Descalzi, in a sideways swipe at rivals including BP that have issued targets without explaining how they plan to overhaul their businesses.

Mr Descalzi wants another three-year term at the helm of Eni, his third such stint, as he seeks to lead a transformation of the group. He acknowledged the decision of his reappointment was “not really in my hands . . . I’m not working for my future, but for the future of my company”. Recommended Nick Butler We need a world institution for climate and energy Clouding his future is a trial in Milan, where he is a defendant in a case over the alleged payment of bribes to facilitate a $1.3bn deal for a controversial Nigerian offshore oil licence in 2011. “For sure, I don’t feel guilty. I’m absolutely calm and clear in my mind. I know what Eni did and what I did . . . there is no point to this issue,” he added.

Eni’s plans to cut emissions by 80 per cent applies to all its divisions and takes into account the products it makes, including those manufactured using crude from third parties. This makes it among the most ambitious of the energy majors, which for a long time argued that they could not control customer emissions such as petrol burnt in cars. It also plans to invest heavily in renewables and biomethane, and decarbonise any gas it produces using carbon capture and storage.

Eni’s strategy presentation came as the company released its fourth-quarter earnings, which missed analysts’ expectations. Net income was €546m, versus consensus forecasts of €680m.