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. Last Updated: 07/27/2016

Eni Seeks to Outbid E.On

Italy's Eni is seeking to outbid Germany's E.On for 25 percent of the Yuzhno-Russkoye gas field near Tomsk and is offering Gazprom oil and gas assets, Vedomosti quoted sources close to Eni as saying.

Gazprom had planned to split 50 percent of the field between Germany's BASF and E.ON, but so far only BASF has managed to offer assets that Gazprom said were attractive enough, while talks with E.ON are stalled.

Eni CEO Paolo Scaroni will discuss the issue with Gazprom CEO Alexei Miller in June and could invite Gazprom to participate in Eni's oil projects and gas distribution assets in Europe, the paper said. Gazprom and Eni were not immediately available for comment.

Industry sources said last month that the two companies were in no hurry to clinch a new gas deal after their previous agreement was scrapped under pressure from Italy's antitrust officials. Industry sources have also said Eni's proposals to swap its gas retail assets for Gazprom's upstream were too ambitious.

"Eni's proposal gives Gazprom a timely helping hand in negotiations with E.On," Alfa Bank said in a research note. "The Italian gas market is smaller than that of Germany, but it represents a good southern platform for Gazprom's European marketing operations."

E.On has been reported to be unwilling to share its gas distribution assets.

Eni produces oil in Africa, the North Sea and the Gulf of Mexico and is the operator of Kashagan in Kazakhstan.