Novatek, Gazprom Neft Raise Offer for Eni’s Yamal Assets

Russian energy companies Novatek and Gazprom Neft are intentioned to raise their offer to $4.9 billion for gas assets owned by Italy’s Eni and Enel, competing with Rosneft’s attempt to acquire them.

According to Kommersant and Reuters, Russian companies are in a frenzy to compete for SeverEnergia, which has assets in the Yamal region. The company expects to produce 36 billion cubic metres of gas and liquids by 2017.

Rosneft is trying to secure a leading position in the Arctic Sea in order to increase its domestic and international clout. According to some rumours, the Russian company could announce on Thursday an agreement with ExxonMobil for the construction of a LNG plant in the Sakhalin region. 

ENI

In the while, Paolo Scaroni, Chief Executive Officer of Eni, met the president of Ukraine Viktor Yanukovych to discuss about the company’s projects in the country. Eni owns 50.05% and the operatorship of Ukraine’s Westgasinvest. The company holds rights over nine blocks for the exploration and development of shale gas in the Lviv basin. 

On Wednesday, Scaroni said that the company “will start the buyback program.”

A few days before, Italy’s Economy Minister Fabrizio Saccomanni said that the country could sell its 4.3% stake in Eni, as part of a broader privatisation plan.