Gazprom ups pressure on Eon in Yuzhno-Russkoye gas field talks
The talks between Gazprom and Eon over the German utility getting access to the Yuzhno-Russkoye gas field are apparently entering the decisive phase. Gazprom’s Deputy c.e.o. Alexander Medvedev said in an interview with German newspaper Süddeutsche Zeitung on Friday he would meet the Eon Ruhrgas’ management on Friday or Saturday in the hope of coming to an “agreement over this difficult question”. There was a possibility the negotiations could fail, he said, however. At the same time Medvedev underlined the importance of Eon as a strategic partner for Gazprom, not only in Germany but in the whole of Europe.
An Eon spokesman declined to comment when asked by Heren Energy when the talks would actually take place and Gazprom could not be reached. Eon started negotiating with Gazprom over a stake of 25% minus one share for the in the massive Yuzhno-Russkoye gas field in Western Siberia around three years ago. Industrial exploitation of the field will start in October, according to Gazprom Deputy c.e.o. Medvedev.
In return for participation, Eon has offered some of its Hungarian assets to the Russian gas monopoly, which comprise 50% minus one share in Eon Földgaz Storage, 50% minus one share in Eon Földgaz Trade, and 25% plus one share in the regional gas and power company Eon Hungaria.
But Gazprom considers this proposal unsatisfactory. Alexander Medvedev said the situation in Hungary was not developing as expected, referring specifically to the price of the offered assets and the regulatory situation in the country.
There has been a lot of speculation over the last few weeks that Eon was considering offering Gazprom participation in its British power generation business. The company owns five gas-fired power stations in the UK, which supply roughly 10% of the country’s total electricity. It is the declared intention of Gazprom to get a stronger foothold in Western Europe, especially the UK. The Eon spokesman told Heren Energy it was always part of the Yuzhno-Russkoye agreement to talk with Gazprom about possible asset swaps and cooperation in the power business but stressed there was not necessarily a particular focus on Britain, saying this could involve any other European country. KTV
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