Today in Sochi Alexey Miller, Chairman of Gazprom Management Committee, Paolo Scaroni, Chief Executive Officer of ENI and Marco Arcelli, Director of Enel Exploration and Production Department signed the Implementation Agreement setting the terms for Gazprom to acquire a 51 per cent stake in SeverEnergia.

Upon completion of the sale and purchase deal SeverEnergia shareholding structure will be as follows: Gazprom – 51 per cent, the Italian partners – 49 per cent (via a joint venture between ENI and Enel holding 60 and 40 per cent respectively).

The sale and purchase agreement is planned to be inked until the end of June 2009. The deal will average USD 1.5 billion to be paid by Gazprom in two tranches during 2009-2010.

SeverEnergia will be the first Russian company to carry out active operations in West Siberian fields.

Background:

Italy is the third-largest importer of Russian gas in Europe. According to provisional data, in 2008 Gazprom supplied Italy with over 22 billion cubic meters of gas.

In November 2006 Gazprom and ENI entered into the Strategic Partnership Agreement providing Gazprom with the opportunity to directly supply Russian gas to the Italian market starting from 2007. Gas supply volumes will be gradually increased to 3 billion cubic meters per annum by 2010. Under the Agreement the existing contracts for Russian gas supplies to Italy were extended till 2035.

SeverEnergia (originally – ENIneftegaz), a consortium between ENI and Enel, purchased in 2007 the following assets: Arcticgaz (100%), Urengoil (100%), Neftegaztekhnologia (100%), Gazprom Neft (20%).

On April 7, 2009 Gazprom and ENI signed a Purchase and Sale Agreement for a 20% stake in Gazprom Neft.

As a result, Gazprom share in Gazprom Neft reached 95.68 per cent. The deal was estimated at around USD 4.1 billion.

SeverEnergia holds licenses for hydrocarbon exploration and production in Western Siberia.