Eni in Talks with Gazprom to Sell Part of Libya Field

ROME, April 29, 2008 (Dow Jones Newswires)

Italian energy company Eni SpA (E) is in talks with OAO Gazprom (GAZP.RS) to sell it part of its stake in a Libyan oil field, as part of its accord to cement ties with the Russian natural gas company, Eni's chief executive said Tuesday.

Eni and Gazprom are in talks to sell a third of its stake in the field, dubbed "Elephant," Chief Executive Paolo Scaroni said at a press conference in Rome after the shareholders approved its 2007 results.

Scaroni said the talks are part of the November 2006 accord it reached with Gazprom to allow it to buy Eni international upstream assets worth $350 million.

Eni's CEO said if the "Elephant" stake acquisition is worth less than $350 million, the Italian company will offer Gazprom other assets to reach that figure.

In 2007 the field yielded 140,000 barrels a day of crude, according to Eni's Web site.

The Libyan government has to approve the acquisition of the stake by Gazprom. Libya owns half of the field, while Korea National Oil Co. owns a third and Eni owns the rest.

Eni's CEO said the Libyan government appeared favorable to the Gazprom acquisition of the stake.

Earlier this month, Russian President Vladimir Putin met Libyan leader Moammar Gadhafi in the North African country.

ROME, April 29, 2008 (Dow Jones Newswires)