In over 130 years of history, Edison has taken on a number of challenges bringing it recognition as a reliable operator capable of giving rise to change with modernity and entrepreneurship, by acting sustainably.

Thanks to the experience it has gained, Edison is now the EDF Group’s natural gas expert. In particular, Edison:

• is integrated in the hydrocarbon business;
• is committed to building new strategic infrastructures for the Italian and European energy system;
• contributes to the improvement of energy mix and the diversification of supplies.
   

Exploration and production activities are located in both Italy and abroad (Egypt, Norway, Algeria, the United Kingdom and the Falkland Islands, Greece, Croatia, Israel and the United Arab Emirates), where the respective national authorities consider Edison a qualified operator based on scrupulous financial soundness analyses and its focus on environmental issues and significant technical expertise.

Edison has hydrocarbon reserves amounting to 40.4 billion equivalent cubic metres.

It holds four long-term contracts to import natural gas from production areas (Qatar, Libya, Algeria and Russia) ensuring that supply sources are diversified.

To further diversify and secure European gas supplies, Edison is involved in the design of certain natural gas importing infrastructures. In particular, through IGI Poseidon, which is 50% owned by Edison and involved in the development of various projects to link Greece and Italy (IGI), Greece and Bulgaria (IGB, 50:50 partnership with Bulgaria). In addition, Galsi, in which Edison holds a 23.53% interest, will connect Italy and Algeria. Furthermore, other possible new infrastructures are being studied, like the pipeline linking Cyprus with Greece (EastMed) and small scale LNG storage facilities in Italy.

Total natural gas production (in Italy and abroad) fell by 3.5%, with a 4.8% decrease in crude oil production.

Investments totalled €224 million in 2016. The main investments in Italy related to completing the development of the north-west Clara field and developing the Ibleo offshore project.

Investments abroad related to the Egyptian Abu Qir concession to upgrade assets and build the new NAQ PIII platform; the Norwegian Zidane concession and Polarled pipeline construction activities, which will link Zidane to the mainland; operations in Algeria to develop the Reggane concession; and production in Great Britain at the Scott and Telford fields acquired in 2015.

Exploration activities included furthering the mining potential assessment of the portfolio. In 2016, total exploration investments amounted to approximately €68 million.

In December, Edison confirmed its interest in the Dvalin (Zidane) concession, located in the Norwegian Sea. Edison will help fund the investment needed for the concession’s future development, while reducing its investment from 20% to 10%. These agreements will take effect on 1 January 2017 and are subject to government approval.

This project is part of Edison’s strategy of achieving a meticulous definition of the priority of investments in the E&P sector. The development plan for the Dvalin project will be implemented by a very financially sound joint venture consisting of Edison Norge AS, Dea Norge AS (operator) and the state-owned company Petoro AS.

In February, Gazprom, Edison and Depa signed a memorandum of understanding to develop a project for a gas pipeline from Russia across the Black Sea to Greece and Italy for the development of a gas pipeline between Greece and Italy to open a new route for the supply of natural gas. The agreement highlights the parties’ interests in a new natural gas transport route from Russia - crossing the Black Sea and through neighbouring countries - to Greece and from Greece to Italy. To this end, the parties intend to exploit, as much as possible, the work that Edison and Depa previously performed in connection with the ITGI Poseidon project.

In 2016, Edison signed agreements with its partner in Libya and Qatar - respectively ENI and RasGas - to review long-term natural gas supply contract prices.

To have its integrated health, safety and environmental management system certified, the Company began a comprehensive context analysis (required by ISO 14001 and by the future ISO 45001 which will soon replace OHSAS 18001) to identify the opportunities and risks of this new structure. In order for the analysis to be consistent and effective, not only must the organisation’s own needs be identified with respect to its various branches, but the key requirements of significant internal and external stakeholders must also be considered to grasp the interaction of dynamics between the external/internal context and the organisation. The aim is to define an effective management system that optimises time and resources in complete accordance with the health, safety and environment standards and in line with Group policies.

This entails the definition of measurement parameters to ensure control over the achievement, maintenance and improvement of levels considered adequate with respect to the performance of the management system.