PARIS (Thomson Financial) - The French government is considering the entry of EDF and Total into the fuel division of Areva as one of the scenarios for the reorganisation of the state-owned nuclear power group, La Tribune reported, without indicating its sources.
The daily also cited EDF CEO Pierre Gadonneix as saying that, 'like in the gas sector, we want to strengthen our position upstream by acquiring stakes in new mines alongside major groups like Areva or BHP Billiton.'
'We will need to secure (fuel) contracts to cover our needs until 2050-60,' he said, noting that EDF's current contracts have secured its fuel supply for a little under 20 years.
Total, meanwhile, is preparing to seriously study the question of nuclear fuel, La Tribune said, without giving any details.
The oil company has previously said it is exploring other energy sources, including renewable and nuclear sources.
The French government confirmed earlier this month that it is conducting a review of the energy sector following press reports it is looking at options for reorganising Areva, notably a three-way tie-up between Areva, Alstom and Bouygues.
Les Echos also reported at the time that the government review could provide a role for EDF and Total. tfn.paris@thomson.com gt/rfw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.