Russ Oil-Gas

11-15-2006 Kommersant - On November 14, Russia’s gas monopoly, Gazprom, and Italian Eni rounded off the negotiations of over a year. The result is a new agreement on strategic partnership that enables Gazprom to supply gas directly to Italy, which is Europe’s third market in size. In return, Eni will participate in buying oil assets in Russia.
The agreement of Gazprom and Eni enables Gazprom to directly supply gas to Italian market starting from 2007 with the size gradually increasing up to 3 billion cu meters by 2010. Italy is the second biggest importer of Russia’s gas in Europe.
The yesterday’s agreement extends gas contracts with Italy till 2035. This is particularly vital in view of new trading regulations that take effect in Europe June 1, 2007. Gazprom has sealed similar agreements with Gaz de France, E.ON Rurghas, OMV, RWE and BASF and intends to conlude a few more agreements till the end of this year.
Gazprom said the parties have agreed to work at investment projects related to gas exploration and production in Russia and abroad, cooperate while laying new routes and developing the existing ones, including the Blue Stream project, and cooperate in the field of liquefied natural gas.
Gazprom didn’t say whether they had agreed to swap assets, and its representatives declined to discuss the issue.
But during the yesterday’s teleconference, Eni CEO Paolo Scaroni announced the agreement with Gazprom to jointly bid for oil assets in Russia. Amid such assets could be the YUKOS companies, sources of Dow Jones reported.