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Gazprom Considers Libyan Swap Deal with Eni

04-05-2008

Russian gas export monopoly Gazprom is considering energy assets in Libya in its swap deal with Italy's Eni, a source in the Russian firm said.

Eni and Gazprom formed a strategic partnership in 2006, to focus on both upstream and downstream in the oil and gas sectors. The exchange of assets is part of the agreement.

"There are Libyan assets in a short list. We consider them promising. We can make an announcement within six weeks," a Gazprom source said.

The move would give state-owned Gazprom a long-sought entry to north African oil and gas fields and tighten its grip on European markets.

Europe gets about a quarter of its natural gas from Gazprom and looks at north Africa as an alternative to Russia.

An Eni spokeswoman declined to comment.

Eni Chief Executive Paolo Scaroni met Gazprom head Alexei Miller and Russian president Vladimir Putin in Moscow this week and discussed cooperation and upstream joint projects in other countries in particular.

Eni relies on its ties with Gazprom to keep growing outside Italy and boost gas imports. Russia is a major supplier of natural gas to Italy, which relies on imports to cover about 85 percent of its needs.

Eni recently agreed to double capacity with a pipeline carrying up to 8 billion cubic metres a year of Libyan gas across the Mediterranean to Italy.