BP buys 10% interest in Egypt’s super-giant Zohr gas field
BP announced that it has agreed to buy from Eni a 10% interest in the Shorouk concession offshore Egypt, which contains the super-giant Zohr gas field, for $375 million.
On closing, BP will also reimburse Eni for BP’s share of past expenditure.
As part of the agreement, BP also has an option before the end of 2017 to buy a further 5% interest in the concession under the same terms.
“This interest in a truly world-scale asset will complement our existing Egyptian business,” Bob Dudley, BP group chief executive, said. “We already have a strong partnership with Eni in Egypt and look forward to working closely with them to efficiently bring these important resources to the Egyptian market.”
The Zohr field was discovered by Eni in August 2015; six wells have so far been successfully drilled on the field. The field is located in the Mediterranean Sea, approximately 190 km north of Port Said in waters approximately 1,500m deep. Thought to be the largest gas discovery made in the Mediterranean, Eni has estimated total gas resources in place in Zohr to be approximately 30 trillion cubic feet of gas. The first phase of development of Zohr is now being fast-tracked, with first gas currently expected in late 2017.
Eni is the operator and currently has a 100% interest in the Shorouk concession. The purchase, which is subject to receiving approvals from the relevant Egyptian Government authorities, is currently expected to complete in the second quarter of 2017.
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