Eni sells 10% stake of Egypt's Shorouk Concession for $934M

CAIRO - 11 March 2018: Eni has agreed to sell to Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, a 10 percent stake in the Shorouk concession, offshore Egypt, where Zohr's super-giant gas field is located. Eni, through its subsidiary IEOC, currently holds a 60 percent stake, while the other partners are Rosneft with 30 percent and BP with 10 percent.

The agreed consideration is $934 million. The completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorizations 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 400 million scf per day. The production will gradually ramp up to reach the plateau by the end of 2019. 

"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," said Chief Executive Office of Eni, Claudio Descalzi.

Musabbeh Al Kaabi, Chief Executive Officer of Petroleum & Petrochemicals, 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 barrels of oil equivalent per day.