UPDATE 1-Eni cuts 2009 profit for bribery probe provisions

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Thu Mar 11, 2010 5:32pm GMT

* 2009 profit cut for 250 mln eur provision for bribe probe

* 2009 adjusted profit unchanged

* Shares close down 0.45 percent (Adds details, background, shares)

MILAN, March 11 (Reuters) - Italian oil and gas company Eni (ENI.MI) cut its 2009 net profit to 4.37 billion euros, saying it had set aside 250 million euros for possible charges resulting from a Nigeria bribery probe.

Eni said on Thursday it had reduced its preliminary consolidated net profit of 4.62 billion euro ($6.27 billion), which was announced on Feb.12, to take into account "an increase to the legal proceedings provision" related to TSKJ consortium in Nigeria.

TSKJ consortium, which included Eni's Snamprogetti unit, is being investigated in several countries over allegations it paid bribes to the Nigerian government between 1994 and 2004 to get contracts worth more than $6 billion to build liquified natural gas facilities in the country.

Halliburton (HAL.N) unit KBR (KBR.N), which headed the consortium, pleaded guilty last year in the United States to charges it had paid $180 million in bribes to Nigerian officials.

Eni said in its 2009 annual report posted on its website on Thursday it had improved internal control procedures since the probe started and continued to cooperate with authorities.

It said recent discussions with U.S. authorities investigating the case had enabled it to estimate the cost to resolve all possible claims arising from the U.S. probe.

The consortium also included Japan's JGC Corp (1963.T) and France's Technip (TECF.PA). Technip has set aside 245 million euros for possible charges in the Nigeria probe. [ID:nLDE61B048]

Eni said the provision was a non-recurring item and had not changed its 2009 adjusted net profit of 5.21 billion euros.

Eni shares closed down 0.45 percent at 17.79 euros after falling as low as 17.57 euros.

Milan prosecutors asked Italy's top appeals court last month to bar Eni and its oil services group Saipem (SPMI.MI), under which Snamprogetti now falls, from doing business in Nigeria until it had completed its probe into the allegations. (Reporting by Svetlana Kovalyova; editing by Karen Foster) ($1=.7369 Euro)

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