Italy's ENI suspends Gazprom deal for Libya field

20th April 2011, Comments 0 comments

Italian oil major ENI on Wednesday said it was suspending a deal to sell 50 percent of its stake in a Libyan oil field to Russian energy giant Gazprom because of a raging conflict in the country.

"Due to the ongoing situation in Libya, the involvement of Gazprom in the Elephant project will remain temporarily on hold," ENI said in a statement after talks between Eni boss Paolo Scaroni and Gazprom chief Alexei Miller.

Gazprom said in February that it would buy the stake in the field for 163 million euros ($236 million). ENI owns a 33.33-percent stake in the field in southwest Libya, which has estimated reserves of 110 million tons of oil.

The field is in the desert some 800 kilometres (500 miles) from Tripoli.

© 2011 AFP

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