2009-08-19-2007-05-01-2007-05-01

Reserves: 5 BBOE

EniNeftegaz, a subsidiary of ENI SpA, Rome, (NYSE: E) has acquired Lot 2 in the Yukos liquidation procedure from Gazprom, Moscow, (London: OGZP) for US$5.83 billion. The assets include 100% of Arctic Gas Co., 100% of Urengoil Inc., 100% of Neftegaztechnologia, various minor assets that will be sold or liquidated and 20% of Gazprom Neft which will be wholly owned by ENI. Thee companies fully acquired companies own five oil and gas fields and condensate fields and parts of three others in the Yamal-Nenets region in Russia. Reserves are approximately 5 billion barrels of oil equivalent. Gazprom has an option to acquire 51% participation interest in the assets within two years. If the option is excercise, the assets will be operated through a joint venture between ENI and Gazprom. Gazprom Neft has production of more than 900,000 barrels equivalent per day, with a refining capacity of 690,000 barrels per day. The deal marks ENI's entrance into the Russian upstream market and is the third-largest foreign acquisition in Russia's oil and gas sector. ENI chief executive Paolo Scaroni says, "This transaction is a major step forward in ENI's strategy of securing reserves in the world's leading hydrocarbons producing countries. This project is a good example of ENI's ability to capitalize on its strategic positioning in midstream and downstream gas to support the expansion of its upstream activities. This transaction, which is in the context of a fruitful ongoing relationship between Italy and Russia, underlines the value of our strategic partnership with Gazprom."