AFP reported that ENI and Gazprom have signed an agreement confirming the handover to the Russian giant of a Libyan oil field the Italian firm held before the Moamer Kadhafi's fall.

As per report, Russian President Mr Dmitry Medvedev and Italian Prime Minister Mr Silvio Berlusconi oversaw the signing of the framework Elephant deal in February just weeks before the NATO led offensive began against Kadhafi's forces.

An ENI spokesman told AFP that "Gazprom and ENI have signed an agreement reaffirming the agreements signed on February 16th 2011, which laid out the future handover to Gazprom of ENI's 50% stake."

The deal was signed on the sidelines of an investment forum in the Black Sea town of Sochi.

Libya's new transitional government had hinted that it may punish Russian firms for Moscow's refusal to support their cause at the start of the war.

Gazprom estimates that the western Libyan field contains 110 million tonnes of estimated recoverable oil. The Russian natural gas giant plans to develop the field through its oil arm, Gazprom Neft.

(Sourced from AFP)