Russ Oil-Gas

MOSCOW, April 4 (RIA Novosti) - Italy's oil and gas company Eni has offered Gazprom [RTS: GAZP] a 20% share in Gazprom Neft for $3.7 billion over two years, Eni said in a news release Wednesday. "Eni gives Gazprom the right to purchase the 20% package of Gazprom Neft shares at any time within the next two years for $3.7 billion plus financing and operating costs," Eni said. The statement also said Italy's Eni and Enel proposed that Gazprom buy 51% in Yukos assets bought at auction over two years as well. If Gazprom agrees, the assets will be managed through a joint venture of Eni and Gazprom. "The above-mentioned agreements are another step on the way toward the development of a strategic partnership between Eni and Gazprom, an agreement about which was signed in November 2006. In line with the agreement, the two companies establish an alliance to develop energy production, processing and sale projects in Russia and abroad," the news release said. It was reported earlier Wednesday that a subsidiary of Italy's energy company Eni has won a 20%-stake in Gazprom Neft at a second auction of Yukos assets, offering 151.53 billion rubles ($5.83 billion). Three companies bid in the second auction for the now bankrupt oil company's assets, Russia's Federal Property Fund said. It said a third auction, including Yukos' research and development assets, has been called off due to a lack of bids. A fund spokesman said the companies were EniNeftegaz (a subsidiary of Italy's oil and gas group Eni), Yunitex (to be acquired by independent Russian gas producer Novatek), and Neft Trade Group (affiliated with state-run oil producer Rosneft). According to informal reports, seven companies applied to participate in the auction. Gazprom said earlier it could acquire the Gazprom Neft stake if EniNeftegaz won the Yukos auction. The Russian energy giant said it has signed a call-option agreement with leading Italian energy companies Eni and Enel on the acquisition of assets, including the second lot of Yukos assets. The starting price for the lot was 144.77 billion rubles ($5.57 billion). Nikolai Lashkevich, the press secretary for the Yukos receiver, said $5.83 billion is a fair price. Rosneft [RTS: ROSN] reclaimed its 9.44% stake held by Yukos in the first auction through a 100%-controlled subsidiary, RN-Razvitiye, last Tuesday. The total worth of Yukos is an estimated 709 billion rubles ($27.3 billion). Once Russia's leading crude producer, Yukos was declared bankrupt in August. Rosneft said it will use the stock it bought back from Yukos to acquire core assets in Russia and abroad. RN-Razvitiye offered 197.84 billion (about $7.6 billion) for the stake, including 12 bills of exchange in the Yuganskneftegaz oil-producing unit, worth 3.558 billion rubles (about $136.8 million). The price paid by Rosneft at the auction was fair, a company representative said. But the chairman of the Yukos board of directors said the stake was sold below market value. "The buyer of this stock should understand what the market price is. If you pay less, you expose yourself to criticism from the company's majority and minority shareholders alike," Viktor Gerashchenko said at Yukos's central office, where the auction was held. Market watchers believe Rosneft's purchase will further strengthen the role of the state in the oil sector and enhance the company's attraction for foreign investors. Yukos, once Russia's largest oil company, was declared bankrupt August 1, 2006, after three years of litigation with tax authorities over the company's tax arrears. Yukos, whose founder Mikhail Khodorkovsky is serving an eight-year prison term in Siberia after being convicted of fraud in May 2005, faces a total of more than 700 billion rubles (about $26.9 billion) in claims from creditors.