Thursday, Jul 14, 2011
(Adds source comment in 1st paragraph, details, quote in 3rd paragraph onwards.)
MILAN (Dow Jones)--Eni SpA (ENI.MI) Thursday declined to comment on a news report that Libya had halted all energy cooperation with Italy, but a person close to the Italian government said cooperation had been suspended for some time, since the outbreak of civil war in the North African country.
An AFP report said Libya's premier had announced a halt to future deals with Eni because of Italy's participation in a NATO bombing campaign in favor of the rebel movement that is fighting the government in Libya.
Eni was the international energy company with the biggest operations in Libya before the mid-February start of the war in Africa's third-biggest oil exporter.
"The relationship between Libya and Eni has been interrupted de facto since the beginning of the conflict," said the person close to Italy's foreign ministry on condition of anonymity. "The activities with Eni will resume and be guaranteed by the future legitimate representatives of the Libyan population."
Eni Chief Executive Paolo Scaroni has said he expected the government that will eventually assume power in Libya after the war will turn to energy companies such as Eni to restart production as quickly as possible.
In a newspaper interview published June 16, the son of embattled Libyan leader Col. Moammar Gadhafi hinted his family might prefer to deal with companies from Russia rather than Eni should they manage to stay in power after the war.
At 1350 GMT, Eni's stock was down 0.38% at EUR15.61 in Milan.
-By Nathania Zevi and Gilles Castonguay, Dow Jones Newswires; +39 02 5821 9908; gilles.castonguay@dowjones.com
(END) Dow Jones Newswires
14-07-11 1421GMT
