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FACTDROP: Gazprom inks Eni Libya deal


Gazprom inks Eni Libya deal

Πηγή: UpStreamonline
By Eoin O'Cinneide 
16 September 2011

The deal, signed on Friday, gives the Russian state oil giant the right to claim half of its Italian counterpart’s one-third stake in the Elephant oilfield.

Reuters had earlier in the day reported that the deal was in the offing with signatures due as soon as Friday.

"The companies will sign an option agreement on Elephant,” Reuters quoted a Gazprom source which it did not identify as saying.

“The option will not expire soon as there is war in Libya, and it won't end soon.”

Eni later confirmed the deal had been struck during a meeting of company executives in Sochi.

This deal replaces an earlier deal mooted since February for Gazprom to take over Eni’s 33.33% stake in Elephant for $170 million.

That deal hit the skids in April amidst continuing political and social unrest in the North African country following the onset of the Arab Spring in February which eventually led to the overthrow of long-term leader Muammar Gaddafi.

Eni had said in April that the deal had only “temporarily” hit the skids.

“Due to the ongoing situation in Libya, the involvement of Gazprom in the Elephant project will remain temporarily on hold,” Eni wrote in a statement in April following a meeting between chief executive Paolo Scaroni and his Gazprom counterpart Alexey Miller.

The Elephant oilfield is situated 800 kilometres from the Libyan capital Tripoli. Although the original deal was signed by both the Italian and Russian parties, it was awaiting approval from Libyan authorities.

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