Petroleum min. signs final agreement to sell 10% of Eni stake in Zohr

CAIRO – 20 June 2018: Petroleum Minister Tarek el-Molla signed the final agreement of selling a 10 percent stake of Eni’s share in the Shorouk concession to Mubadala Petroleum, a subsidiary of Mubadala Investment Company, for $934 million, in addition to signing a signature grant worth $94 million.

The agreement was signed between the petroleum minister; the Italian company, Eni; UAE-based, Mubadala Investment Company; and the Egyptian Natural Gas Holding Company (EGAS).

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.

Eni discovered Egypt's giant Zohr gas field in 2015. In December 2017, the company delivered the first gas production from the field estimated at 30 trillion cubic feet, which makes it the biggest gas field in the Mediterranean.

Eni announced in May the start of the second production line of Zohr. Production of the field is scheduled to reach 1.2 billion cubic feet per day in May and 2 billion cubic feet per day by the end of 2018, amassing 2.7 billion cubic feet per day.

The minister commented on the signing, saying that the entry of new investment partners in the oil sector reflects the investment opportunities available, serves the Egyptian economy significantly by taking advantage of the vast experience of the new partners, and supports the efforts of the ministry to increase the volume of investments in the oil sector, increasing the production and reserves of petroleum wealth.

Molla added that it’s the first time for Mubadala to invest in Egypt through Zohr gas field, referring that the company showed its interest in the activities of research, exploration and development of fields.

Established in October 2002, Mubadala Investment Company is a public joint stock company and is a wholly owned investment vehicle of the government of Abu Dhabi in the United Arab Emirates.