Eni to sell 10% stake in Shorouk concession to Mubadala Petroleum for $934m

Oil and gas industry news : Italian oil and gas company Eni has struck a deal to divest a stake of 10% in the Shorouk concession, offshore Egypt, containing the super-giant Zohr gas field to Mubadala Petroleum for a sum of $934 million.

The UAE-based Mubadala Petroleum is a 100% owned subsidiary of Mubadala Investment Company.

Currently, Eni holds a stake of 60% in the Shorouk concession through its subsidiary IEOC, and is partnered by Russian energy company Rosneft and BP, which holds 10%.

Having started production in December 2017, within three years after its discovery, the Zohr gas field has a production of 400 million scf per day. The Zohr gas field production is expected to be increased gradually to reach the plateau by the end of next year.

Offshore oil and gas production. Photo courtesy of Petroleum man1 at FreeDigitalPhotos.net.

Commenting on the Shorouk concession deal with Mubadala Petroleum, Claudio Descalzi – CEO 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.”

The transaction completion will depend on fulfillment of certain standard conditions, like all necessary approvals from Egyptian authorities.

Musabbeh Al Kaabi – CEO of Petroleum & Petrochemicals, Mubadala Investment Company, and Chairman of Mubadala Petroleum, commenting on the Shorouk concession deal with Eni, 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 operating in Egypt for nearly 65 years through its subsidiary IEOC Production. The company is a leading oil producer in Egypt with an equity production of about 230,000 barrels of oil equivalent per day.

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