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Italy's Eni buys Dominion's Gulf of Mexico assets for US$4.8 billion

Italy's Eni buys Dominion's Gulf of Mexico assets for US$4.8 billion

Italian energy company Eni SpA said Monday it agreed to buy Dominion Resources Inc.'s production, development and exploration assets in the Gulf of Mexico for US$4.8 billion (euro3.52 billion).
Eni said in a statement that the purchase will increase its Gulf of Mexico production to 110,000 barrels of oil equivalent a day by the second half of the year, from the current 36,000.
The transaction is subject to government approvals and is expected to be completed on July 2.
Eni shares rose 0.4 percent to euro24.44 (US$33.34) in Milan trading.
Richmond, Virginia-based Dominion said in May that the company was considering selling certain business units because of concerns that Dominion's stock was being undervalued. The exploration and production business had grown to become Dominion's most profitable unit, overshadowing the company's core utility and power generation businesses.
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On the Net:
http://www.eni.it
http://www.dom.com