Russian billionaire Fridman in talks to acquire Eon oil and gas assets

The deal is estimated at $1.2 billion. An announcement on the Eon sale to LetterOne is expected to be made within days, said one source familiar with the negotiations.

As well as the North Sea, LetterOne is looking at opportunities in North America, where it hopes to build a significant presence, and Mexico, which is auctioning a series of offshore exploration blocks, according to the report.

Eon owns a 28.1% stake in the Skarv gas condensate and oil field in the Norwegian Sea operated by BP. Its output is estimated at 165,000 barrels of oil per day. It also owns a 30% stake in the Statoil-operated Njord field, and a 17.5% holding in the small Hyme field, also run by the Norwegian energy company, the report reads.

Eon expects to gain $2 billion from sales of its oil fields in Norway, the British part of the North Sea and Algeria as part of the company's restructuring. LetterOne was given until October 20 to sell off its licenses in UK gas fields in the North Sea. The company obtained the licenses after it had bought in March 2015 an oil and gas company Dea from Germany's RWE for EUR 5 billion. The deal was approved by all of the countries where Dea was operating, except Britain. The UK Energy Minister warned that if the assets were not sold to another owner, the company would see its exploration licenses revoked. LetterOne operates 11 fields in the North Sea which are responsible for 3-5% of Britain's total gas output.

Ineos, the Switzerland-based chemicals group run by billionaire Jim Ratcliffe, and two investment funds Siccar Point Energy and Chrysaor were on the list of the recent potential buyers of LetterOne's assets, according to the FT.