Eni sells 30 per cent stake in the Shorouk concession, offshore Egypt, to Rosneft

San Donato Milanese Metanopoli Secondo palazzo degli uffici ENISan Donato Milanese, head quarters of ENI. (Image source: Arbatlete/Commons)Eni has finalised the sale of a 30 per cent stake in the Shorouk concession, where the Zohr gas field is located, to Rosneft

The terms of the sale, agreed in December 2016, include a payment of US$1.125mn US dollars and a pro quota reimbursement of investments already made.

Zohr, which is considered the largest natural gas field ever found in the Mediterranean, was discovered by Eni in August 2015. Its start-up is scheduled by the end of 2017, just over two years after its discovery, setting a record for the industry. Eni, through its subsidiary IEOC, now holds a 60 per cent stake in the concession, Rosneft, through its subsidiary Upstream Projects PTE Ltd, 30 per cent and BP hold 10 per cent.

This transaction reaffirms Eni’s "dual exploration" strategy, which consists of selling minority stakes in its exploration successes, while maintaining control and operatorship, in parallel to the fast track development of discovered reserves. Through this strategy, which allows accelerated monetisation of the exploration successes, Eni has been able to cash in more than US$9bn in the last four years.

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC. The company is the country's leading producer with equity of about 230,000 barrels of oil equivalent per day.

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