The Dirty Dozen #6: ENI SPA

ENI Spa, the Italian energy giant, has one of the largest footprints of any Western company in terrorist-sponsoring states.  Although doing business in only one terrorist-sponsoring state at the moment, Iran, ENI’s projects in the country are estimated to be valued at nearly $4 billion. 

ENI – and its subsidiaries, Agip and Snamprogetti Spa, have a number of significant business ties to the oil and gas industries of Iran.  ENI maintains a 38% stake in Iran’s Balal offshore oil field, a 60% stake in Phases 4 and 5 of the South Pars offshore gas field, and a 45% stake in the Gulf Dorood oil field.  According to reports, ENI’s contract for the South Pars gas field alone totaled some $3.8 billion.  ENI has also been awarded construction and upgrade contracts for several large Iranian petrochemical complexes.  The company is reportedly also bidding on contracts to develop additional phases of the South Pars deal.1

Agip has been central in helping Iran develop the Darkhoein oil field which has cost over $500 million. The wells are expected to produce 160,000 barrels of oil a day.2  Recently Agip resigned a deal with the Iranian govenment on the Darkhoein field.3

ENI’s activities place it on the "Dirty Dozen" list for the following reasons:

• Revenues: The primary source of hard currency for Iran  is the export of oil and natural gas.  Indeed, some 40-50 percent of Iran’s overall budget comes from the exports of oil and natural gas.4  In the coming years, the company’s activities will help generate billions of dollars for the ayatollahs of Iran.  Such hard currency revenues pave the way for Iran to accelerate its dangerous weapons of mass destruction program and for both countries to continue supporting terrorism with impunity.

• Economic Growth: ENI is an engine for the expansion of Iran’s economy for the benefit of its terror-supporting leaders and their agendas. This type of rapid economic growth serves as a lightning rod for broader economic development and undermines diplomatic efforts to secure the end of their sponsorship of terrorism.
• U.S. Sanctions Violator: ENI is currently in technical violation of the Iran-Libya Sanction Act.  That law was specifically designed to ensure that Iran is unable to realize substantial energy-related revenues that could be used to advance its sponsorship of terrorism. 
• Moral and Political Cover:  When leading global companies such as ENI partner with terrorist-sponsoring states, it sends a clear message to these governments: Sponsoring terrorism is not a concern as long as there are corporate profits to be made.  This message undermines U.S. sanctions and international diplomatic efforts.

1. MENA Business Reports, 2/20/03; The Oil and Gas Journal, 8/14/00; Bloomberg News, 1/9/03; MEED, 12/20/02; WWP- Report on Oil Gas & Petrochemicals in the Developing World, 11/1/02; and  Agence France Presse, 9/12/02.

2. "Contractors Gain More From Darkhoein Project." Iran Daily, March 2, 2005.

3. "Iran To Sign Buyback Deal With Italy’s Agip." BBC Monitoring International Reports, November 5, 2005.

4. Country Analysis Briefs, Energy Information Administration, Department of Energy, May 2002; and Country Analysis Briefs, Energy Information Administration, Department of Energy, July, 2002.