Eni CEO says Gazprom supply deal worth 6 bln eur of revenues per year

December 1, 2006

Milan (AFX) - Eni SpA chief executive Paolo Scaroni said that the gas supply deal it recently signed with Gazprom running to 2035 will generate annual revenues of 6 bln eur.

‘The value of the gas we’ll sell every year from now to 2036 is 6 bln eur,’ he said at a gas market presentation in London.

Regarding Eni’s access to Russian upstream assets, Scaroni said that Eni is targeting jointly with Gazprom two potential acquisitions, mainly in gas.

‘Having Gazprom is a guarantee of success. The likelihood for one of the two deals is very high,’ Scaroni said.

‘If we don’t succeed (with both deals) we’ll (very likely) have access to one Gazprom asset,’ he added.

Scaroni also said that acquisitions will cost fairly less than 10 bln eur.

On shares buybacks, he said Eni will continue to repurchase its own shares and will give an update on the buyback programme in February.

In further comments, he said that the company has no plan to float its Gas & Power unit. ‘It’s the last thing we want to do,’ he said.