Gazprom neft' OAO To Buy Stake In Libyan Elephant Field From Eni SpA-Interfax

Interfax reported that Gazprom neft' OAO (Gazprom Neft) has sent Italian energy company Eni SpA (Eni) notification of intent to exercise an option for the purchase of a stake in the Libyan project Elephant, a Gazprom Neft statement says. The next phase involves the receipt of equipment for Gazprom Neft's entry into the project on the part of the Libyan authorities in the person of state-run National Oil Corporation. Gazprom Neft has done due diligence on the asset. The two companies signed an agreement by which the Russian company would have bought a stake in the Elephant project in September of last year. However, because of the political situation in Libya, Gazprom Neft's entry into the project was put on ice. The Russian company had an option to buy from Eni 33% in the consortium that controls 50% of the project for $163 million. That option expired on December 22. The Elephant field, which went commercially on-stream in 2004, lies 800 kilometers south of Tripoli. The project is being carried out by a consortium of Eni (66%) and (33%).