BP and Eni have reached an agreement on the sale by Eni of a 10% interest in the Shorouk concession offshore Egypt, where the super-giant Zohr gas field is located, to BP for US$375m.
Eni is the operator and currently has a 100% interest in the Shorouk concession. In August 2015, the company discovered the Zohr field, which is estimated to hold a total of 30 Tcf (847 bcm) of total gas resources in place. The first phase of development of Zohr is now being fast-tracked, with first gas currently expected in late 2017.
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. 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.
Eni plans to cut its stake in the field to 50% and is in talks with various companies to sell interests in Zohr. The group would remain operator.