“Italy is the second country in terms of investments: of the 17,2 billion euros spent in Italy on investments and operating costs, 36% were destined for safety and the environment and reclamation. Over the next 4 years we will spend 8 billion in Italy with spending on the environment and safety, which will go from 36 to 40%. So investments in the environment and safety are the most important of all the rest". Eni's CEO, Claudio Descalzi, said this during a hearing before the joint Productive Activities Commissions of the Chamber and the Senate.
“In the last 3 years – he added -, in safety we have been the best of all the competitor companies worldwide for hours or accidents at the level worked. In 2015 we dropped by 37% to 0,45 accidents per million hours worked. The safety and health part is part of our operating model”.
As for the level of oil prices, "our goal for the next 4 years is to be able to live even at very low prices", added Descalzi, illustrating the 2016-2019 strategic plan: "How do you survive at 40 dollars? Eni must be very powerful and agile in the upstream but cannot lose in other sectors” such as Gas & Power, refining and chemicals.
However, a cost cut will also be needed: “When I say streamline – the CEO went on –, everyone thinks of people also because all our competitors have made job cuts. Our cost reduction program is done without touching a person, a job: it is important to say it and repeat it. Internationally we are asked why since it is one of the easiest ways to cut; they say because we are in Italy. But we don't have employees only in Italy. We didn't do it because our type of business is particular: it takes us 10 years to train a person. The most important investment, the time spent training these people and giving them the Eni culture. If in a moment of low we send people away we lose skills; instead it is these people who allow us to give these results”.
As for Versalis, “it's not Italian chemistry – continued Descalzi –, it represents 8% of Italian chemistry while everyone says Italy is leaving chemistry. If we talk about the future we must necessarily look to the past and the past is a disaster; we took billions from businesses that were going well and put them on chemistry in a slow process that went from 12 to 4 people”.
“If we don't have financial guarantees on Versalis from the SK Capital fund, it won't close. Another three-four weeks and if the financial part is not closed we will do another tender”, he concluded.
