Eni and British Petroleum (BP) have completed the previously announced sale of 10% stake in Shorouk concession in Egypt.
In November last year, Eni has agreed to sell a 10% stake in its Shorouk concession, where Zohr gas field is located, to BP for $375m. As per the deal terms, Eni will also be reimbursed by BP with around $150m as part of past expenditure.
With the sale, IEDC, a subsidiary of Eni now holds 90% of stake in the license, while Rosneft has agreed to acquire a 30% stake, subject to approval from the Egypt government.
The Zohr field, which was discovered in 2015, has a total potential of about 850 billion m3 of gas in place and is considered as one of the largest natural gas deposits in the Mediterranean.
Recently, Eni CEO Claudio Descalzi noted that work at Zohr is moving at a fast pace and he expected that the production at Zohr would start in 2017.
Eni and BP are also partners in Egypt at the Nooros field, discovered in July 2015, in the Nile Delta, that was already producing about 25 MMScm/d only 15 months after the startup of the field, as well as in Baltim SW field, discovered in June 2016. The start-up of Baltim SW is expected in 2019.
Eni has been present in Egypt since 1954, operating through its subsidiary IEOC. The company is the main producer in the country with an equity production of approximately 230,000 barrels of oil equivalent per day.