Mubadala Petroleum has bought a 10 per cent interest in the offshore Shorouk Concession from Italy’s Eni, marking its entry into Egypt and the supergiant Zohr gas field.
Dr. Bakheet Al Katheeri, CEO of Mubadala Petroleum signed a deed with Eni completing the sale to Mubadala Petroleum, the UAE company said in a statement without disclosing the deal value.
Zohr is currently producing over 1.1 billion cubic feet of gas per day (bcfd), equivalent to approximately 200,000 barrels of oil equivalent per day. Production is expected to increase to 2 bcfd by end 2018 and to reach a production plateau of 2.7 bcfd by end 2019.
“This world-class asset will provide Mubadala Petroleum with increasing future production, and substantial reserves, all of which support our drive for long-term and profitable growth,” said Dr. Al Katheeri. “At the same time we have joined a world-class partnership with Eni and look forward to working closely with them to deliver the resources to meet growing local energy demand.”
The Zohr field was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of up to 30 trillion cubic feet of gas in place. Production in the first phase of the Zohr gas field kicked off in December 2017 after a record delivery time.
Eni's CEO, Claudio Descalzi, said: "Working alongside significant partners such as Mubadala Petroleum, BP and Rosneft is a further boost for the development of Zohr and underlines the quality of the asset, which will play a fundamental role in supporting Egypt's goal of achieving energy independence.”
The field is located approximately 190 kilometers north of Port Said in waters approximately 1,500m deep.
Following the completion, Eni, through its subsidiary IEOC, holds a 50 per cent interest in the concession. The other partners in the concession are BP with 10 percent interest and Rosneft with 30 per cent interest.