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UPDATE 1-Eni CEO says asset swap details with Gazprom due

Wed Apr 2, 2008 11:26pm IST
 
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(Changes dateline, adds Putin's comment, statement, details, background)

By Amie Ferris-Rotman

NOVO-OGARYOVO, Russia, April 2 (Reuters) - Italian energy major Eni (ENI.MI: Quote, Profile, Research) expects details of its asset swap with Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research) to come on Wednesday, its chief executive said.

"Later today there will be an announcement regarding our 2006 oil and gas production asset agreement with Gazprom," Paolo Scaroni told journalists after meeting Russian President Vladimir Putin, along with 14 other Italian executives.

"The swap will involve assets outside of Russia ... it will not be LNG (liquefied natural gas)," Scaroni said after leaving Putin's country estate, which lies outside Moscow in thick woods.

Eni and Gazprom formed a strategic partnership in 2006, to focus on both upstream and downstream in the oil and gas sectors. The exchange of assets and the South Stream pipeline are part of the agreement's framework. Scaroni met his Gazprom counterpart Alexei Miller on Wednesday morning following talks in Moscow last week.

"The two companies talked about the implementation of the strategic partnership agreement," Gazprom and Eni said in a statement after Wednesday's meeting.

"Talks also involved the realisation of upstream joint projects in third countries," the statement said without elaborating.

Eni relies on its ties with Gazprom to keep growing outside Italy and boost gas imports. Russia is a major supplier of natural gas to Italy, which relies on imports to cover about 85 percent of its needs.  Continued...

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