Italian energy conglomerate ENI has recently released its 2024 report on payments made to governments, in compliance with the European Union’s Directive 2013/34/EU, which mandates heightened transparency for companies in the extractive industries. Published on June 5 by the Ecofin agency, this document reveals a compelling insight into the company’s geographic focus and financial commitments — underscoring the enduring centrality of Africa to ENI’s global operations.
According to the report, ENI made approximately $9.1 billion in payments globally related to its oil and gas exploration and production activities. Significantly, 61% of that total — over $5.7 billion — was directed to African countries, reaffirming the continent’s strategic importance to ENI’s operations. This figure, while slightly down from the $9.7 billion paid worldwide in 2023, still reflects a sustained and deep-rooted investment pattern.
Key Beneficiaries and Nature of Payments – Among African nations, Libya, Algeria, and Egypt were the foremost recipients. Libya led the chart with $2.1 billion, followed by Algeria with $1.2 billion, and Egypt with $826 million. These nations host some of ENI’s most mature and productive assets, which have historically delivered high returns due to well-developed infrastructure and long-standing operational agreements.
Other notable recipients include Nigeria, the Republic of Congo, Ghana, Ivory Coast, and Tunisia, all of which received considerable payments in various forms — ranging from direct taxes and royalties to contract bonuses and payments in kind. The monetary equivalents of these in-kind deliveries were also accounted for, emphasizing the breadth of ENI’s fiscal relationships.
Most of ENI’s African operations are governed by Production Sharing Contracts (PSCs), a model that typically involves direct partnerships with state-owned enterprises. These arrangements provide host governments with a share of production or revenues and often incorporate additional taxation and royalties. Key local partners include:
- Sonatrach in Algeria
- EGAS in Egypt
- NNPC in Nigeria
- Petroci in Ivory Coast
The structure of these partnerships not only ensures local governmental participation but also embeds ENI deeply into the political and economic fabric of host nations.
ENI’s Legacy in Africa – ENI’s engagement with Africa is not a recent phenomenon; rather, it stretches back over six decades. The company’s first major foray into African energy markets occurred in Algeria during the 1950s, when ENI, under the visionary leadership of Enrico Mattei, established energy diplomacy based on mutual benefit and non-colonial partnership — a significant departure from the exploitative oil concessions that dominated the era.
In Algeria, ENI was among the early international players to collaborate with Sonatrach, Algeria’s national oil company, following the country’s independence in 1962. This collaboration expanded significantly in the 1990s with the development of major gas fields such as Ourhoud and Bir Rebaa. In more recent years, ENI has continued to invest heavily in Algeria’s upstream and midstream sectors, particularly in natural gas, a vital export for both Algeria and Europe.
Beyond Algeria, ENI established a robust presence across North and Sub-Saharan Africa. In Libya, the company has operated since 1959 and remains one of the largest producers despite the country’s political instability. ENI also plays a prominent role in Nigeria, where it is a key participant in onshore and offshore oil blocks, including the Niger Delta and deepwater operations.
In Mozambique, ENI has been instrumental in developing the Coral South FLNG project — one of the largest offshore gas developments in Africa. Likewise, in Angola, the company is engaged in upstream oil production, while in Ghana and Côte d’Ivoire, ENI has participated in offshore exploration and early-stage development.
Navigating Energy Transition and Strategic Realignment – Looking ahead, ENI’s business activities in Algeria and the broader African energy landscape are poised to evolve amid a rapidly changing global energy context.
Immediate factors that will shape this trajectory include Energy Transition Pressures. In this relation, ENI has publicly committed to a carbon neutrality goal by 2050. As part of this pledge, it is shifting its portfolio toward low-carbon energy sources, including renewables, biofuels, and green hydrogen. While Africa’s rich hydrocarbon resources remain central to ENI’s short- and mid-term strategy, the company is actively exploring solar and wind energy projects, especially in North Africa’s sun-rich regions.
The ascending importance of Natural Gas as a “Bridge Fuel” in global energy industry represents another factor. In the context of Europe’s search for alternative suppliers amid geopolitical tensions, notably with Russia, Algeria has emerged as a critical supplier of natural gas via pipelines such as TransMed and GALSI. ENI is well-positioned to deepen its role in facilitating this pivot, leveraging Algeria’s proximity to Europe and its gas reserves.
Strengthening African Partnerships – ENI is likely to intensify collaboration with African governments not only in hydrocarbons but also in renewable energy. For example, memorandums of understanding (MOUs) have been signed in recent years with countries like Kenya and Angola to co-develop decarbonization pathways. In Algeria, there is ongoing dialogue to expand into solar energy development, supported by Algeria’s strategic goals to diversify its energy mix.
Increased Local Content and Technology Transfer. African governments are demanding more from international partners — not just revenue, but also skills development, job creation, and technology transfer. ENI’s ability to adapt to these expectations — particularly through joint ventures, local employment policies, and capacity building — will significantly influence its license to operate.
Regulatory and Fiscal Trends in global energy industry is likely to impact on ENI’s operations in Africa in significantly. As resource nationalism ebbs and flows across Africa, ENI will need to navigate changing regulatory regimes and taxation frameworks. In Algeria, for instance, hydrocarbon law revisions in 2019 aimed at attracting more foreign investment while preserving national interests — a delicate balancing act that ENI has historically managed well but must remain vigilant toward.
ENI’s 2024 payments report does more than account for financial disbursements — it affirms Africa’s centrality to the company’s identity, strategy, and profitability. The $5.7 billion paid to African governments is not merely a figure, but a reflection of decades-long relationships, critical infrastructure investments, and mutual economic interests.
As ENI navigates the dual imperatives of energy security and climate responsibility, its activities in Algeria and Africa are expected to transition, not diminish. Natural gas will likely serve as the linchpin of this transitional phase, while renewables and integrated energy solutions begin to take root.
The future of ENI in Africa will thus depend not just on oil and gas fields, but on its ability to remain a trusted partner, adapt to new energy paradigms, and support Africa’s own aspirations for sustainable development.
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