Eni CEO sees bid for Yukos' Arcticgas, Urengoy in next 30 days UPDATE |
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Published
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Fri, 23 Feb 2007 19:41
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(Updates with Venezuala arbitration, acquisitions)MILAN (AFX) - Eni SpA CEO Paolo Scaroni said the company will participate in bidding for Yukos's Arcticgas and Urengoy assets, a move he expects to be launched within the next 30 days.He added the company will participate after agreeing conditions with Russia's Gazprom for gas transportation.The bid for Arcticgas will be made with Enel SpA and Russia's ESN.A spokesman for Eni was unable to say with whom Eni will bid for Urengoy.On the acquisition front Scaroni said Eni has included the possibility of acquisitions in its new business plan 2007-2010 but added the acquisitions will not be made simply to help beat company targets and must create value.'We have included something in our portfolio as regards acquisitions but nothing significant,' Scaroni said.The CEO said group cash will be spent mainly on its capital investment programme but added a significant amount would also be returned to shareholders in the form of dividends.'Any excess cash after this will be used to continue our share buyback programmes,' he said.Eni has already spent 5.6 bln eur since 2000 to buy back shares and has bought back 8.2 pct of capital.'Some 1.8 bln eur is still available,' Scaroni said.Asked about the group's 50 pct stake in Snam Rete Gas SpA, Scaroni said he thinks it is likely that the gas transmission network will remain part of Eni 'for the next few years'.The Italian government has been debating the possibility of compelling Eni to sell down its 50 pct stake in Snam RG to liberalise the gas market.In Eni's previous business plan Snam RG was not consolidated. 'We have consolidated it in this plan,' Scaroni said.Scaroni said it was more logical that an asset like the gas grid should remain under Eni control until a Europe-wide grid mechanism could be created.In other comments, Scaroni declined to specify the damages that the company is asking in the arbitration over the nationalisation of the Dacion field in Venezuela.UK's Burren Energy PLC is unlikely to exercise the preemption right it has on the Congolese assets that Eni acquired from French company Maurel et Prom yesterday for 1.43 bln usd, he said.'There are good probabilities that it (Burren) will not exercise its pre-emption right,' he said.Eni said this acquisition will be EPS-enhancing from this year.On acquisitions in general, Eni chairman Roberto Poli said that the company 'is always ready to seize acquisition opportunities'.He also said that Eni has started its new activity in India, which is still at an early phase.Asked about opportunities in north America, Scaroni said: 'North American independent oil companies are a natural hunting ground, particularly for investment banks.'He added that acquisitions need to make economic sense even with a 40 usd per barrel scenario for the oil price.'It is not easy to find prey' that create value, he said.stephen.jewkes@thomson.comdm/sj/lam/nt/twCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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CORRECTION Eni CEO sees bid for Yukos' Arcticgas, Urengoy in next 30 days 