On the move: Gazprom plans to exercise buyback option
Gazprom to snap up buyback option
Russia's Gazprom plans to exercise an option to buy back 20% of its oil arm Gazprom Neft and Russian gas assets from Italy's Eni in early April, industry sources said.
"It's going to be part of (Italian Prime Minister Silvio) Berlusconi's visit to Moscow," one of the sources told Reuters.
Industry sources added that Gazprom was currently talking to a number of Russian state banks to raise financing to exercise the option, which could cost up to $5.5 billion.
However, the sources said the two sides have yet to reach an agreement on the final price.
Eni acquired the stake in Gazprom Neft at a state auction of bankrupt oil firm Yukos in April 2007 and immediately agreed to sell the stake to Gazprom within two years.
Gazprom, Russia's gas export monopoly, currently owns 75%of Gazprom Neft.