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Eni sells interest in Shorouk Concession to BP

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LNG Industry,

Eni has announced that it has agreed to sell a 10% participating interest in the Shorouk Concession, offshore Egypt, to BP.

The supergiant Zohr gas field is located in the Shorouk Concession. The gas field, which has a total potential of 850 billion m3 of gas in place, was discovered by Eni in August 2015. It is the largest natural gas field ever found in the Mediterranean. Eni, through its subsidiary IEOC, currently holds a 100% stake in the block.

In February 2016, the authorisation process for the development of the Zohr gas field was completed, and first gas is expected by the end of next year.

The agreed conditions of the sale include a consideration of US$375 million and the pro-quota reimbursement of past expenditures, which amount to approximately US$150 million. Under the same terms, BP also has an option to buy a further 5% stake.

Eni said that the transaction is in line with its ‘dual exploration model’, aiming at the early monetisation of the value through the dilution of recent huge exploration discoveries owned with high participating interests.

The completion of the transaction is subject to the fulfilment of certain standard conditions, including all necessary authorisations from Egypt’s authorities.

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