UDPATE 1-Centrica seeking Dutch Oxxio sale, buyers interested

* DONG no longer looking at Oxxio-sources

* Foreign utilities, local competitor interested-sources

* Centrica could fetch up to 240 million euros-sources (Adds DONG, Eni and E.ON no comment, background, details)

By Greg Roumeliotis

AMSTERDAM, Oct 29 (Reuters) - British gas and power utility Centrica (CNA.L) expects to launch a formal competitive process for the sale of its Dutch energy supply unit Oxxio in 2010, with sources familiar with talks saying several parties have expressed interest.

A Centrica spokesman confirmed the sale but declined to comment on any bilateral discussions that the company has held.

"No formal sale process is expected until after Christmas, in the new year," the spokesman said.

Several sources familiar with discussions said Centrica has been talking to parties interested in Oxxio, the fourth-largest energy retailer in the Netherlands, since the summer. Some of the discussions were based on asset swaps, they said.

Denmark's DONG Energy [DOENRY.UL] was looking at Oxxio but will not be making an offer, two people familiar with the matter said. Other utilities interested in the sale include Belgium's Electrabel, Italy's Eni (EN.MI) and Germany's E.ON (EONGn.DE), sources said.