Italy’s Eni, agreed to sell a 30 percent stake in Egypt’s Shorouk offshore concession to Russia’s Rosneft for about $1.58 billion, with an option to purchase another 5 percent interest, Eni said on Monday.
Egypt’s Shorouk contains the massive gas field Zohr - the largest natural gas field ever found in the Mediterranean, with an estimated 30 trillion cubic feet of gas, according to Eni who frist discovered the field in August 2015. The first phase of development of Zohr is now being fast-tracked with six wells successfully drilled and the first gas currently expected in late 2017.
Eni last month sold a 10 percent interest in the field to British Petroleum (BP) $375 million and now holds a 90 percent stake in the block through its subsidiary IEOC.
For Rosneft, the $1.58 billion deal includes approximately $450 million for pro quota reimbursement of past expenditures by Eni.
Eni’s “dual exploration model” in parallel with an accelerated development of the hydrocarbons reserves, aims at early monetization of the value through the dilution of the high participating interest owned in huge exploration discoveries. With this transaction, in the last four years the model has generated a total cash of approximately $6.3 billion US dollars, the firm said in a statement.
The transaction completion is subject to conditions and regulatory approvals from Egypt.