Novatek and Gazprom Neft want to buy Eni's stake in Russian gas company SeverEnergia in a battle that pitches oil and gas barons against state-controlled oil company Rosneft, Kommersant reported Thursday.
The contest for gas resources and markets has come to a head as the government reviews a proposal for a partial lifting of Gazprom's export monopoly for tanker-shipped liquefied natural gas from the start of next year.
Sources close to the matter were quoted as saying that the country's No. 2 gas producer Novatek and Gazprom Neft, the oil arm of the country's top gas producer Gazprom, are looking to increase their stakes in SeverEnergia by acquiring the 29.4 percent held by Italian energy group Eni.
That would help the Russian duo to counter the influence of state-owned Rosneft, which last month agreed to purchase Enel's indirect stake in SeverEnergia.
SeverEnergia, which has assets in the Yamal-Nenets autonomous district in northern Russia, is a joint venture between Yamal Development and Arctic Russia BV, which own 51 percent and 49 percent respectively.
In turn, Yamal Development is jointly owned by Gazprom Neft and Novatek, while Arctic Russia BV is controlled by Eni and Enel.
Both Gazprom Neft and Novatek declined to comment Thursday.
Only a day after Rosneft announced that it had agreed to buy Enel's SeverEnergia stake, Gennady Timchenko, a co-owner of Novatek, said the gas producer and Gazprom Neft were also in talks with the Italian company.
A spokesman for Timchenko declined to comment on his plans.
Observers said the developments indicated that Rosneft CEO Igor Sechin's expansive strategy was upsetting an equilibrium in the state-capitalist establishment that President Vladimir Putin has nurtured through his 13-year leadership.
SeverEnergia owns licenses for nine gas fields in Russia, with proven and probable reserves of 7.3 billion barrels of oil equivalent. Last year Samburg oil field, one of the deposits, was launched with initial production pegged at 43,000 barrels of oil equivalent per day.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
