As part of the deal, Rosneft agreed to pay $1.13bn to Eni to purchase the stake as well as an additional $450m to cover development costs already incurred by the Italian firm.
Rosneft also has an option to acquire a further 5% stake in the block.
The sale is part of Eni’s efforts to raise cash amid low oil prices. The firm, through its subsidiary IEOC, currently holds a 90% stake in the block.
Recently, Eni agreed to divest 10% stake in the block to BP. The transaction is currently ongoing.
Rosneft CE Igor Sechin said: “Rosneft participation in the Zohr field, developed jointly by our international partners – is a logical step in the development of our cooperation in Egypt and boosting of the positions of the Company at markets on the rise.”
Upon completion of the two deals, Rosneft, Eni and BP will hold up to 35%, 50% and up to 15% respectively in the Zohr gas field.
The Zohr field, located in the Shorouk Concession, is said to be the largest natural gas field ever found in the Mediterranean.
Discovered by Eni in August 2015, the field is estimated to have total potential of 850 billion cubic meters of gas in place.
While the production from the field is expected to start by the end of 2017, the field is anticipated to reach full production capacity in 2019.
Image: Eni intends to raise cash with the sale of stake in the Zohr field offshore Egypt. Photo: courtesy of num_skyman/FreeDigitalPhotos.net.
