Today, the Gazprom Headquarters has hosted a working meeting between Alexey Miller, Chairman of the Gazprom Management Committee and Paolo Scaroni, Chief Executive Officer of ENI.

The parties discussed the current status of the November 14, 2006 Agreement for Strategic Cooperation between Gazprom and ENI.

Alexey Miller and Paolo Scaroni pondered on the progress with the Agreement. ENI plans to shortly announce its acquisition of assets in the Russian upstream sector.

Reference:

Italian natural gas market is the third largest market in Europe after the United Kingdom and Germany. The Italian energy balance gas share is more than 30 per cent. In 2005 Italy met some 86 per cent of natural gas needs from gas import. Russia and Algeria are the main gas importers.

Italy is the second largest importer of Russian gas in Europe. In 2005 the amount of gas deliveries reached 22 bcm of gas.

Gazprom and ENI participate in the Blue Stream draft program implementation (gas main development for direct Russian gas deliveries to Turkey through the offshore section of the Black Sea). Gazprom together with ENI created a joint venture Blue Stream Pipeline Company to provide financing, pipeline construction and its operating. Blue Stream was launched in February 2003. In 2005 Turkey received 5 bcm of gas via the Blue Stream Pipeline, and in 2006 Turkey will receive nearly 7 bcm of gas.

In November 2006, Gazprom and ENI signed the Agreement on Strategic Cooperation stipulating an opportunity for Gazprom to provide direct Russian gas deliveries to the Italian market in 2007. By 2010 annual gas volume supplied will reach 3 bcm. The Agreement foresees prolongation of existing contracts for gas supply up to 2035.