Eni Sells Zohr Stake to Abu Dhabi
Eni has agreed to sell a 10% stake in the giant Zohr supergiant gas field and surrounding Shorouk concession to the Abu Dhabi state-owned Mubadala Investment Company for $934mn. If concluded, Eni's equity will decrease from its current 60% level to 50%. The other partners are Russian state Rosneft 30% and BP 10%, who have both turned down their options to buy a further 5%.
Completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorisations from Egypt's authorities.
The March 11 signing ceremony was presided over by Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed Al Nahyan and Italian prime minister Paolo Gentiloni. The same day, Eni bought stakes in two gas fields in Abu Dhabi.
Zohr was successfully started-up in December 2017, in only 28 months after its discovery, and is producing 400mn ft3/d gross. The production will gradually ramp up to reach the expected 2.8bn ft3/d 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 Eni CEO Claudio Descalzi. Mubadala's CEO, Petroleum and Petrochemicals, Musabbeh Al Kaabi, said: "This is an important and attractive investment for Mubadala, adding a world-class asset to our portfolio with long-term cash flows."
Seated: Eni CEO Claudio Descalzi (L) and Mubadala Investment Company CEO Khaldoon Khalifa Al Mubarak. Standing: Italian PM Paolo Gentiloni (L) and Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi (Photo credit: Mubadala)