Italy's Eni is negotiating terms of a joint development of the Val Shatskogo oilfield, in the Black Sea, with Russian producer Rosneft, according to reports.
Russian business daily Kommersant, citing sources close to the talks, said Eni may acquire 33% in the project and fund initial exploration works estimated at around $1 billion.
Rosneft, according to the newspaper, is looking to get access to Eni's projects in Libya but a source said the list of possible Libyan projects was not outlined yet.
A Rosneft spokesman declined to comment.
Earlier this year, Rosneft's president said French oil producer Total had offered to replace Chevron as a partner in the Val Shatskogo project.
Last summer, Chevron signed a deal to join Rosneft in the $32 billion Black Sea oil exploration project with estimated resources of about 6.8 billion barrels of oil, but the US company has since pulled out.