MILAN, Feb 7 (Reuters) - The head of Italian oil and gas group Eni, Paolo Scaroni, is under investigation in a probe into contracts won by oil service group Saipem in Algeria, two judicial sources with direct knowledge of the situation said on Thursday.
"The CEO is under investigation in the Saipem case," one of the sources told Reuters.
The sources added that Scaroni's house and offices had been searched.
Eni, Italy's biggest listed company, had no immediate comment.
Saipem, which is 43 percent owned by Eni, said in December its then chief executive Pietro Franco Tali had resigned after it emerged Milan prosecutors were investigating orders Saipem had won in Algeria.
Eni shares were down 4.8 percent at 1613 GMT. (Reporting By Manuela D'Alessandro, Writing by Stephen Jewkes, Editing by Lisa Jucca and Alexander Smith)