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Eni completes sale of 10% stake in Shorouk concession to Mubadala Petroleum

Mubadala Pet
Posted: June 20, 2018 at 10:52 pm   /   by   /   comments (0)

Eni has finalized a 10% stake sale in the Shorouk concession to Mubadala Petroleum, a wholly-owned subsidiary of Mubadala Investment Company. The Shorouk concession is offshore Egypt, where the supergiant Zohr gas field is located. Eni, through its subsidiary IEOC, now holds a 50% stake of the Contractor’s Share, while Rosneft holds 30%, BP 10% and Mubadala Petroleum 10%.

Following a record start-up less than two and a half years from discovery, the project is now in its ramp-up phase with the aim of reaching 2 billion cubic feet of gas per day (bcfd) of total installed treatment capacity by the end of the year, and a production plateau of 2.7 bcfd by the end of 2019.

Eni’s Chief Executive Officer, Claudio Descalzi, said: “We welcome today’s announcement with Mubadala Petroleum, a strong and reliable partner with whom we look forward to working with. Working alongside significant partners such as Mubadala Petroleum, BP and Rosneft is a further boost for the development of Zohr and underlines the quality of the asset, which will play a fundamental role in supporting Egypt’s goal of achieving energy independence.”

Dr. Bakheet Al Katheeri, Chief Executive Officer of Mubadala Petroleum, said: “The acquisition of a 10 percent interest in the Shorouk concession with the producing Zohr gas field is a significant portfolio addition for Mubadala Petroleum and marks our entry into Egypt. This world-class asset will provide Mubadala Petroleum with increasing future production, and substantial reserves, all of which support our drive for long-term and profitable growth.  At the same time we have joined a world-class partnership with Eni and look forward to working closely with them to deliver the resources to meet growing local energy demand.”

Zohr’s current production is over 1.1 bcfd, corresponding to 200,000 barrels of oil equivalent per day. The project is executed by Petrobel, the operating company jointly owned by Eni and the state company Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly owned by the Contractor (Eni and its partners) and by the state company Egyptian Natural Gas holding Company (EGAS).

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC Production BV. The company is the main producer in the country with an equity production of approximately 300,000 barrels of oil equivalent per day.

Mubadala Petroleum completes the acquisition of a 10 percent interest in the Shorouk Concession in Egypt

Mubadala Petroleum announces that it has completed the acquisition from Italy’s Eni of a 10 percent participating interest in the offshore Shorouk Concession in Egypt, which contains the supergiant Zohr gas field. Following the completion, Eni, through its subsidiary IEOC, holds a 50 percent interest in the concession. The other partners in the concession are BP with 10 percent interest and Rosneft with 30 percent interest.

Dr. Bakheet Al Katheeri, Chief Executive Officer, Mubadala Petroleum signed a deed with Eni completing the sale to Mubadala Petroleum in the presence of the Egyptian Minister of Petroleum, HE Tarek El-Molla, in Cairo.

Dr. Al Katheeri said: “The acquisition of a 10 percent interest in the Shorouk concession with the producing Zohr gas field is a significant portfolio addition for Mubadala Petroleum and marks our entry into Egypt. This world-class asset will provide Mubadala Petroleum with increasing future production, and substantial reserves, all of which support our drive for long-term and profitable growth. At the same time we have joined a world-class partnership with Eni and look forward to working closely with them to deliver the resources to meet growing local energy demand.”

Eni’s Chief Executive Officer, Claudio Descalzi, said: “We welcome today’s announcement with Mubadala Petroleum, a strong and reliable partner with whom we look forward to working with. Working alongside significant partners such as Mubadala Petroleum, BP and Rosneft is a further boost for the development of Zohr and underlines the quality of the asset, which will play a fundamental role in supporting Egypt’s goal of achieving energy independence.”

The Zohr field was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of up to 30 trillion cubic feet of gas in place. The field is located approximately 190 kilometers north of Port Said in waters approximately 1,500m deep.

The project was delivered in record time as production in the first phase of the Zohr gas field commenced in December 2017. The field is currently producing over 1.1 billion cubic feet of gas per day (bcfd), equivalent to approximately 200,000 barrels of oil equivalent per day. Production is expected to increase to 2 bcfd by end 2018 and to reach a production plateau of 2.7 bcfd by end 2019.

(Eni & Mubadala Petroleum Press Releases)

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