BP has signed to purchase a 10 percent interest in Egypt’s Shorouk offshore concession from Italy’s Eni for $375 million, gaining access to the massive Zohr gas field, the British firm said.
Al Zohr is the largest gas discovery in the Mediterranean Sea with an estimated 30 trillion cubic feet of gas, according to Eni. 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.
BP, who will reimburse Eni on closing of the deal for BP’s share of past expenditure, has an option to buy a further five per cent interest in the concession before the end of next year, under the same terms, the firm said in a statement.
“BP has now been in Egypt for over 50 years and we continue to see opportunities to further develop our extensive activities here,” Bob Dudley, BP group chief executive, said in the statement. Beyond Zohr, the first phase of our major West Nile Delta project is on schedule to begin production next year and the fast-tracked development of the Atoll gas field is expected to come on stream in 2018”,” he said.
Eni, who first discovered Al Zohr field in August 2015, is the operator and currently has a 100 percent interest in the Shorouk concession. The purchase, which is subject to receiving approvals from the relevant Egyptian Government authorities, is expected to complete in the second quarter of 2017.