Eni reaches deal with Sonatrach on gas contracts
BY GIADA ZAMPANO
ROME -- Eni and Algerian state-owned energy group Sonatrach have reached a deal on the revision of some conditions of their gas supply contracts for 2013 and 2014, Eni said Tuesday.
Under the agreement, "Eni and Sonatrach will reduce certain quantities of the contractual gas volumes delivered into Italy," Eni said in a statement, without providing additional details.
Eni has been holding talks with its main gas suppliers, such as Sonatrach and Russia's Gazprom, as part of its plan to make such contracts profitable. The contracts tie the price of the gas Eni has to buy to more expensive oil prices and were signed under long-term take-or-pay agreements.
"This agreement is part of the renegotiations program started in the recent months, and contributes to the announced objectives of profitability and cash generation," the Italian energy firm said.
Dow Jones Newswires