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2008 June 26   11:37

Gazprom still planning to buy 20% of Gazprom Neft by April 2009

Gazprom (RTS: GAZP) still plans to exercise  its option to buy 20% of Gazprom Neft (RTS: SIBN) from Italy's Eni, Andrei  Kruglov,  the  Russian  gas giant's deputy chief executive, told a press conference according to Interfax.

"Gazprom  plans  to  consolidate the remaining 20% of Gazprom Neft.

The deadline  for  this, as per the agreement, is April 2009. The option will be exercised by then," Kruglov said.

He said the shareholding was worth around $4 billion.

A consortium  of  Italy's  Eni  and  Enel  acquired  a 20% stake in Gazprom  Neft  along  with other Yukos (RTS: YUKO) assets in April 2007. Gazprom  holds  a  three-year option for the buyback of the 20% stake in Gazprom  Neft  as  well  as  a 51% stake in other assets acquired by the Italian company, in particular Arcticgas and Urengoil.

Gazprom's budget for 2008 does not include funds for the buyback of the 20% stake in  Gazprom Neft from Eni.

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