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AUTHOR
Michel
Gabrysiak
President of the Finance Foundation

ENI is born again and invests heavily in Africa
November 17, 2017 , Michel Gabrysiak - Financial Markets
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Claudio Descalzi is the very discrete chief of the Italian energy company ENI. 

A few years ago, ENI was considered as the very, very sick person of the Oil and Cars Industry. 

And here, suddenly after a few years of restructuring it has become a very desirable company. What he did, for example, is to re-organise the whole group, but without any diminution of the head count. No personnel has been thrown out, everybody is on board. He believes in the optimisation of the structure.

The result in this sector only is a cost production of about 800 million Euro per annum. 

“I had to be involved personally because I had to convince my people, not just give and order, or use a consultant, I had to work with them.”

His main objective from the beginning- that is 3 years ago- was to bring the cash neutrality from about 120 dollars per barrel to about 50 dollars per barrel. 

In the last 3.5 years, ENI got 9.1 billion Euro from selling exploration sites with a gain of 8.1 billion. That allowed us to invest.

“I had to discuss not only with first line or second line of executives. I got down, down, down in the scale. People don’t understand; they get scary messages from the press, from television, from the world. I had to explain where we were going.”

And he won, because personnel realised that nobody was fired and everybody remained on board. 

And now ENI is attacking Africa. The development of the African energy market is crucial; 15% of the worldwide population which uses 3% of the worldwide energy. More than 650 million people don’t have access to electricity. 

ENI is diving into the African market. With a great chance of a great success.

 

 

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