Alexei Miller, chief executive of Gazprom, met with Eni Chief Executive Paolo Scaroni and Enel Director General Fulvio Conti, Gazprom's news service said on Wednesday.

Scaroni and Miller discussed the implementation of joint projects on geological exploration for and production of hydrocarbons, the news service said, adding the Gazprom and Enel meeting focused on power-generation and gas projects in third countries.

The companies discussed an asset swap in Russia, Italy and third countries, the news service said. In particular, Gazprom may receive power plants in Italy.

Last year Scaroni said Eni offered Gazprom several projects in North Africa within the framework of an Eni-Gazprom partnership agreement, the news service said.

In November 2006 Gazprom and Eni signed an agreement on strategic partnership, within the framework of which the Italian company purchased several assets for gas production in Russia, the news service said.

In particular, a joint venture of Eni and Enel, Enineftegaz (now renamed Northern Energy), last spring purchased Yukos' gas assets on the Yamal Peninsula, including Urengoi and Arcticgaz companies.

Gazprom, in turn, received a possibility for direct supplies of Russian natural gas to the Italian market starting from 2007, the news service said. The amount of gas supplies will gradually increase up to 3 billion cubic meters by 2010.

In compliance with the agreement, effective contracts on the delivery of Russian natural gas to Italy were extended up to 2035, the news service said.

Currently, Enel does business in 21 countries. Since 2003 Gazprom Export has delivered natural gas to Enel under spot deals. Enel has already received about 445 billion cubic meters of natural gas during that period, the news service said.

Syria, China ink deal to set up oil refinery

Syria and China Wednesday signed an agreement to establish a petroleum refinery in the eastern region of Dir Ezzor, with a capacity of 100,000 barrels per day, Sana reported.

The refinery mainly treats Syrian crude oil or any other crude according to European and Syrian standards, and the refinery will be established in 2011.

Minister of Petroleum and Mineral Resources Sufian al-Alaw who signed for Syria said the Chinese side owns 85 percent while Syria owns 15 percent, adding, "We agreed with the Chinese government to study the possibility of offering the Syrian side a loan to finance the Syrian portion in the establishment of the refinery."

Another economic and technical agreement was signed with the Chinese side to offer Syria a grant of $3 million to fund different developmental projects.

Earlier, Prime Minister Mohammad Naji Ottri held talks with a delegation of the Chinese Communist Party headed by Member of the Permanent Committee of the Political Bureau Li Chang-Shun.

The two sides reviewed agreements signed between both countries and discussed prospects of expanding cooperation by signing new accords in the fields of oil, trade, electricity, irrigation, communication and petroleum refineries.

Gazprom increases gas price for Moldova

Gazprom increased the gas price for Moldova, Itar-Tass reported. The preliminary estimates said the republic would pay about $211 for 1,000 cubic meters of gas.

The exact price will be set on April 10, when all information about the oil price dynamics for the last nine months will be collected, said Gennady Abashkin, chairman of the administrative council of the Moldovan-Russian company MoldovaGaz.

The gas price for Moldova will be calculated under the formula stipulated in the long-term contract with Gazprom and envisaging the per-quarter gas price revision, Abashkin said.

In 2006 Gazprom and MoldovaGaz agreed on the gradual growth of the gas price for Moldova to the average European level by 2011. Seeking the gas price going down in 2007 Russia and Moldova signed the protocol on the principles of levying indirect taxes in the mutual trade under the principle of the country of destination. Chisinau hopes the gas price may be reduced a little bit in this way.

Meanwhile, in 2008 Moldova was planning to reduce gas consumption by 7.8 percent as compared with the figure in 2007.

The gas debt of Moldovan consumers, including fees, makes about $1.4 billion. The greater part of the sum -- about $1.2 billion -- falls on the Dniester region.

In March 2007 the Moscow talks focused on the handover to Gazprom of Dniester's share in the MoldovaGaz capital and restructuring the debt for the earlier supplied gas. After these talks the Moldovan government and Gazprom reaffirmed their intentions to find an optimal solution to eliminate Moldova's longstanding debts.

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Closing oil prices, Apr. 3, 3 p.m. London

Brent crude oil: $102.59

West Texas Intermediate crude oil: $103.84

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(e-mail: energy@upi.com)