MILAN, July 23 (Reuters) -

Eni has signed an exclusivity agreement with

investment firm KKR over the potential sale of a

minority stake in biofuel unit Enilive that could value the

subsidiary up to 12.5 billion euros ($13.6 billion), the energy

group said.

The deal, under which KKR could buy between 10% and 20% of

Enilive, is part of Eni's satellite strategy to develop separate

units focused on specific businesses and make them become

financially independent.

"The strong interest shown in this period by leading

institutional financial investors could lead to the subsequent

sale of a further stake of up to 10% of Enilive," the Italian

energy group said in a statement.

In December Swiss fund Energy Infrastructure Partners (EIP)

bought a minority stake in Eni's retail and renewable unit

Plenitude in a deal that valued the company around 10 billion

euros.

($1 = 0.9185 euros)