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Eni to sell $934m stake in Egypt’s Shorouk concession to Mubadala Petroleum

EBR Staff Writer Published 13 March 2018

Eni has agreed to sell 10% of its stake in the Shorouk concession, located offshore Egypt in the Mediterranean Sea to UAE-based Mubadala Petroleum for $934m.

The Italian energy giant is currently holds a stake of 60% via its subsidiary IEOC with the other partners being Rosneft and BP, which own stakes of 30% and 10%, respectively.

Mubadala Petroleum, which will join the Shorouk concession alongside the partners, is a subsidiary of Mubadala Investment.

Eni CEO Claudio Descalzi 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 Shorouk concession, located about 190km north of Port Said, contains the Zohr's super-giant gas field, which had started production since last December.

Discovered in 2015, the Zohr field is estimated to have potential resources of more than 30Tcf of gas in place.

Currently, production from the Zohr field is 400 million scf per day. Eni said that production at the offshore natural gas field will be gradually boosted to reach the plateau by the end of 2019.

Mubadala Investment Petroleum & Petrochemicals CEO and Mubadala Petroleum chairman Musabbeh Al Kaabi 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.”

Headquartered in Abu Dhabi, Mubadala Petroleum has exploration, development and production activities across eight countries, with main focus on the Middle East and Southeast Asia.

Its portfolio includes the Dolphin Gas Project in the Middle East, enhanced oil recovery operations in Oman along with exploration, development and production in Thailand, Indonesia, Malaysia and Vietnam.

The company’s average working interest production in 2016 was 320,000 barrels of oil equivalent per day.