Russ Oil-Gas

May 21, 2009 - Oil & Gas Journal by Uchenna Izundu – LONDON, Eni SPA and Enel SPA will assign to OAO Gazprom a 51% stake in SeverEnergia, a Russian holding company with exploration and production licenses. The deal is expected to close in June. Enel and Eni have given Gazprom until 2010 to pay the $1.5 billion for the stake in two tranches. "As a result of the transaction, Eni and Enel's equity will cash in $900 million and $600 million dollars, respectively," said Eni. The new shareholding in SeverEnergia will be Gazprom holding 51%, the Italian partners, 49% (via a joint venture between Eni and Enel holding 60% and 40%, respectively). This agreement builds upon a deal that was signed in April giving Gazprom until May 30 to implement its option to buy the stake (OGJ Online, Apr. 11, 2009). SeverEnergia was formerly known as EniNeftegaz and was two production companies belonging to the defunct OAO Yukos. By 2013, SeverEnergia hopes to produce at least 150,000 boe/d focusing on west Siberian fields. SeverEnergia has the Arcticgaz, Urengoil, and Neftegaztechnologia E&P licenses, which hold an estimated 5 billion boe. "The parties also agreed to produce first gas by June 2011 from the Samburskoye field. The parties have 90 days to define the plan and obtain all the necessary authorizations, including the extensions of the licenses by Rosnedra, the Russian authority regulating the exploitation of the country's mineral and oil resources," said Gazprom. Enel Chief Executive Officer and General Manager Fulvio Conti said that this partnership would enable Enel to grow in the Russian market throughout the entire value chain, from gas fields to generation and sale of electricity. "From this perspective, the entry of Gazprom provides us with a guarantee of being able to continue contributing a reliable supply of gas to our Russian power plants at advantageous conditions through our SeverEnergia gas quota."