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Total, Eni may offer nuclear for oil, gas - FT

Wed Jul 9, 2008 11:49am IST
 
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MILAN, July 9 (Reuters) - European energy firms Total (TOTF.PA: Quote, Profile, Research) and Eni (ENI.MI: Quote, Profile, Research) plan to offer help to build nuclear power stations in the Middle East to have a stronger negotiating position for oil and gas projects, the Financial Times reported in its European edition and on its Web site.

The report, quoting the chief executives of the French and Italian companies, said Total hoped to secure better terms and access in the oil and gas industry in countries as a result and Eni was considering following that lead.

Total Chief Executive Christophe de Margerie said he expected to sign soon a similar deal to one unveiled in January for construction of two pressurised water reactors in the United Arab Emirates by his company with French nuclear group Areva (CEPFi.PA: Quote, Profile, Research) and utility Suez (LYOE.PA: Quote, Profile, Research).

"I told the UAE, why don't you think about nuclear?" de Margerie said in comments reported by the Financial Times.

Eni's Scaroni said his company would suggest nuclear power as an alternative to gas for power generation to countries that either needed gas for other uses internally or to sell abroad.

"It is logical for us (to say to them) we make nuclear and you keep the gas," Scaroni told the newspaper.

Egypt and Algeria were possible candidates, the Financial Times said.

Scaroni added that for Eni, whose domestic market has banned nuclear power since a 1987 referendum, it "is difficult, but not impossible" to offer help on nuclear power. (Reporting by Jo Winterbottom; editing by Sue Thomas)

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