21 Provisions

Provisions for site restoration, abandonment and social projects mainly comprised: (i) for €7,557 million the present value of the estimated costs that the Company expects to incur for dismantling oil and natural gas production facilities at the end of the producing lives of fields, well-plugging, site clean-up and environmental restoration; (ii) for €507 million the estimated costs for social projects in the Exploration & Production segment, relating for €230 million to the estimated costs for social projects as part of the commitments between Eni SpA and the Basilicata region in relation to the oil development program in the Val d’Agri concession area; (iii) for €442 million the estimate for decommissioning and dismantling costs of refining plants for which there are no prospects of economic reuse or reconversion into transition processes, in the current market context, as well as fuel distribution outlets.

In 2025, increases in the decommissioning provisions related to: (i) the revision of cost estimates relating to depleted oil & gas assets, whose book value has been completely written-down for €79 million; (ii) cost estimates for dismantling and removing refining plants and fuel distribution for €55 million for which management has assessed the absence of economic prospectives in the current market context. Reversal of unutilized provisions mainly concerned a downstream plant in Italy for which negotiations are underway for the sale to third parties.

Initial recognition and changes in cost estimates include the updated estimates of site decommissioning and restoration costs (primarily in Italy and Algeria) partly offset by an increased yield curve for the euro. The effect of the accretion of discount recognized through profit and loss was determined based on discount rates ranging from 1.7% to 5.6% (from 1.8% to 5.3% at December 31, 2024). Utilizations of the decommissioning provision mainly related to advance in decommissioning activities in Italy for €253 million, in the United Kingdom for €243 million and in Libya for €111 million. Other changes included the reclassification to liabilities directly associated with assets held for sale of the Exploration & Production segment for €231 million. Main expenditures associated with decommissioning operations are expected to be incurred over a fifty-year period, with utilizations essentially starting after 12 months. Further information on the uncertainty relating to the estimation of the times of dismantling and restoration of hydrocarbon extraction plants is reported in note 15 - Impairments of tangible and intangible assets and right-of-use assets. Sensitivity of outcomes to decarbonization scenarios.

Provisions for environmental risks included the estimated costs for environmental clean-up and remediation of soil and groundwater in areas owned or under concession where the Group performed in the past industrial operations that were progressively divested, shut down, dismantled or restructured. The provision was accrued because at the balance sheet date there is a legal or constructive obligation for Eni to carry out environmental clean-up and remediation and the expected costs can be estimated reliably. The provision included the expected charges associated with strict liability related to obligations of cleaning up and remediating polluted areas that met the parameters set by law at the time when the pollution occurred but to date are no more in compliance with current environmental laws and regulations, or because Eni assumed the liability borne by other operators at the time of acquisition or otherwise took over the site operations. The prerequisite for the recognition of these environmental costs is the evaluation of the probability of their being incurred and the possibility of estimating them reliably. Provisions related: (i) for €294 million to remediation activities at brownfield sites in Italy and costs related to groundwater cleanups; (ii) for €191 million to refining plants, storage sites, fuel distribution outlets and oil pipelines; (iii) for €78 million to remediation activities at petrochemical plants. Reversal of utilized provisions related to the progress of environmental remediation and restoration operations. At December 31, 2025, environmental provisions related to Eni Rewind SpA for €2,251 million and to the Refining and Chemical segment for €750 million.

Litigation provisions comprised expected liabilities associated with legal proceedings and other matters arising from contractual claims, including arbitrations, fines and penalties due to antitrust proceedings and administrative matters. The provision was allocated on the basis of the best estimate of the existing liability at the balance sheet date and referred to the Exploration & Production segment for €282 million. The provision also included the estimate provisions in certain antitrust proceedings.

Provisions for uncertain tax matters related to the estimated losses that the Company expects to incur to settle tax litigations and tax claims pending with tax authorities in relation to uncertainties in applying rules in force and referred to the Exploration & Production segment for €142 million. In particular, charges mainly relate to the dispute regarding the taxation of Italian local administrations on Eni offshore platforms located in common territorial waters.

Loss adjustments and actuarial provisions of Eni’s insurance company Eni Insurance SpA represented the estimated liabilities accrued on the basis for third party claims. Against such liability were recorded receivables for €34 million towards insurance companies for reinsurance contracts.

Provisions for losses on investments included provisions relating to investments whose loss exceeds equity and primarily related to Industria Siciliana Acido Fosforico - ISAF - SpA (in liquidation) for €176 million.

Provisions for the Everen insurance coverage included insurance premiums which will be charged to Eni in the next five years by the mutual insurance company in which Eni participates together with other oil companies.

Other provisions mainly related to claims, contingencies and commercial renegotiations as part of the ordinary course of the business. Those provisions were outstanding mainly in the Global Gas & LNG Portfolio and Enilive business lines.

Based on the outlay forecasts in relation to the progress of the restoration and decommissioning activities of depleted oil assets, the short-term portion of the risk provisions amounts to approximately €1.7 billion.