MILAN, Italy — Eni SpA has agreed to sell Rosneft a 30% participating interest in the Shourouk concession, offshore Egypt, where the supergiant Zohr gas field is located. Eni, through its subsidiary IEOC, holds a 90% stake in the block after selling 10% interest to BP in Nov. 2016.
The agreed conditions include a consideration of $1.125 billion U.S. and the pro quota reimbursement of past expenditures, which to date, total approximately $450 million. In addition, Rosneft has an option to buy an additional 5% stake under the same terms.
This agreement further confirms the success of Eni’s “dual exploration model” which, 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 large exploration discoveries. With this transaction, in the last four years the model has generated approximately $6.3 billion.
The completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorizations from Egypt’s authorities.
The Zohr field, located in the Shorouk concession, was discovered by Eni in August 2015 and is the largest natural gas field ever identified in the Mediterranean, with a total potential of 850 billion cmg in place. On February 2015, the authorization process for the development of field was completed, while the first gas is expected by the end of 2017. Eni has been present in Egypt since 1954 where it operates through IEOC Production BV.