UPDATE 1-Eni says to buy 16.11 pct stake in Czech refiner

...

Italian oil and gas group Eni agreed on Thursday to buy a 16.11 percent stake in Czech Refining Co. (CRC) from ConocoPhillips , in what it said was a bid to improve its downstream profile in Europe.

The deal would nearly double Eni's stake in CRC, bringing it to 32.4 percent. CRC, also known as Ceska Rafinerska, is 51 percent owned by Czech downstream oil group Unipetrol .

Eni did not detail a price for the transaction, which is still subject to regulatory approval.

Unipetrol shares jumped as much as 6.8 percent earlier on Thursday on rumours ENI took the stake at a high price that would also raise the valuation of Unipetrol's stake in CRC.

Eni said the deal would increase its refining capacity in the country to 54,000 barrels per day.

CRC's production facilities consist of two oil refineries with total processing capacity of about 8 million tons per year, or 165,000 barrels per day, Eni said.

The announcement came shortly after Eni's Chief Executive Paolo Scaroni told shareholders that a 1.25 euro dividend would be sustainable through 2010, assuming current forecasts, including oil prices, are correct.

"Taking into consideration the length of the plan from 2007 to 2010, even with oil at $40 a barrel, we say a dividend of 1.25 euros is sustainable," said Scaroni.

[ROME/Reuters/Finance.cz]