MOSCOW — Russia is preparing to significantly expand its stake
in Libya's energy sector.
Russia's Gazprom is concluding an agreement for a joint venture
with Italy's Eni.
Under the deal, Gazprom would take over Eni's energy
projects in Libya, including 100 percent of Libya's Elephant oil field, with
a daily production of 150,000 barrels.
In return, Eni would be allowed to
acquire energy assets in Russia.
Industry sources said the United States has been dismayed by Russia's
entry into the Libyan market.
In 2007, U.S. companies won exploration and
development licenses in Libya, delayed by lawsuits against the regime of
Libyan leader Moammar Qaddafi.
The Qaddafi regime has approved the Eni-Gazprom swap. Eni has been
reported to be the largest foreign oil operator in Libya, with production of
550,000 barrels per day.