Eni sells 10 per cent stake in Egypt’s concession to Mubadala Petroleum

Eni MubadalaEni has agreed to sell a 10 per cent stake in the Shorouk concession, offshore Egypt, where Zohr's super-giant gas field is located to Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company

Eni, through its subsidiary IEOC, currently holds a 60 per cent stake, while the other partners are Rosneft with 30 per cent and BP with 10 per cent interest.

The agreed consideration is US$934mn. The completion of the transaction is subject to the fulfilment of certain standard conditions including all necessary authorisations from Egypt’s authorities.

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

Musabbeh Al Kaabi, CEO of petroleum and petrochemicals at 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.”

Eni has been present in Egypt since 1954, where it operates through the subsidiary IEOC Production BV. The company is the main producer in the country with an equity production of around 230,000 boepd.

The signing ceremony was attended by Sultan bin Saeed Al Mansouri, minister of economy, Dr Anwar bin Mohammed Gargash, minister of state for foreign affairs, Suhail bin Mohammed Faraj Faris Al Mazrouei, minister of energy and industry, Mohammed bin Ahmad Al Bawardi, minister of state for defence affairs and Dr Sultan bin Ahmad Sultan Al Jaber, minister of state and a number of officials.

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