Mubadala buys stake in Eni’s giant Zohr field

Italian oil company Eni has agreed to sell to Mubadala Petroleum a 10% stake in the Shorouk concession, offshore Egypt, where Zohr super-giant gas field is located.

The Zohr field was discovered by Eni in August 2015. Eni, through its subsidiary IEOC, currently holds a 60% stake, while the other partners are Rosneft with 30% and BP with 10%. BP entered the Zohr field in February 2017 and Rosneft in October 2017.

Eni informed on Sunday that the agreed consideration for the 10% stake in the concession to Mubadala is $934 million. The completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorizations from Egypt’s authorities.

The Zohr super-giant gas field was started-up in December 2017, in only 28 months after its discovery, and is currently producing 400 million scf per day. The production will gradually ramp up to reach the plateau by the end of 2019.

Claudio Descalzi, Chief Executive Office of Eni, said: “We are pleased to be working with Mubadala and welcome them into the partnership for the Shorouk concession. This represents a further signal about the strength and quality of this world class asset developed by Eni.”

Musabbeh Al Kaabi, Chief Executive Officer of Petroleum & Petrochemicals, Mubadala Investment Company, and Chairman of Mubadala Petroleum said: “This is an important and attractive investment for Mubadala, adding a world-class asset to our portfolio with long-term cash flows. We are joining a strong partnership with Eni as operator, who have delivered the project in record time and with the full support of the Egyptian authorities.”