Gazprom Agrees With Eni To Take Stake In Libya's Elephant Field

MOSCOW -(Dow Jones)- Russian gas firm OAO Gazprom (GAZP.RS) said Monday it has agreed with Italy's Eni SpA (E) on conditions to take a stake in the Elephant oil project in Libya.

The talks between Gazprom and Eni were first made public in April 2008 and was part of an accord that the two companies signed in 2006 to cement their ties.

No details were given of the deal, which was agreed at a meeting in Moscow on Monday between Gazprom Chief Executive Alexei Miller and Eni CEO Paolo Scaroni. The agreement will be finalized within a few days and presented to the Libyan government, Gazprom said.

Miller and Scaroni also agreed to start talks with French utility Electricite de France (EDF.FR) to join the South Stream gas pipeline project.

They also approved a plan to start production at their joint SeverEnergia unit in 2011.

Company Web site: www.gazprom.ru

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232 9197; jacob.pedersen@dowjones.com