Russ Oil-Gas

Italian energy giant Eni said it had made a "significant step" in its talks with Russian partner Gazprom about an exchange of assets.
26 March 2008 - Upstream OnLine - Italian energy giant Eni said it had made a "significant step" in its talks with Russian partner Gazprom about an exchange of assets. The exchange is part of a framework co-operation agreement signed by the two companies in 2006. The reported breakthrough was taken at a meeting between Eni chief executive Paolo Scaroni and his Gazprom counterpart, Alexey Miller, in Moscow yesterday, Eni said, Reuters reported. "Miller and Scaroni ... made a significant step forward in the negotiation for the asset exchange established within the strategic agreement between the two companies," the Eni statement said. It did not elaborate. The EU is wary of Gazprom's attempts to buy up Europe's energy infrastructure, but the gas giant has sought to get new assets by building partnerships with individual companies and member states. Eni, meanwhile, relies on its ties with Gazprom to keep growing outside of Italy. Among other issues, Scaroni and Miller also discussed co-operating in oil, Eni said in the statement. "The parties discussed opportunities of co-operation between Gazprom Neft and Eni," it said. Eni owns 20% of Gazprom Neft , the oil arm of Gazprom, Russia’s gas export monopoly. Faced with falling production, Gazprom Neft plans to nearly double output by 2020. Scaroni and Miller also talked about South Stream, a 10 billion ($15.5 million) plan to bring Siberian gas to Europe, it said without giving any details.