Eni sells 10% Shorouk stake to Mubadala

Adjust Comment Print

INPEX agreed to a participation fee of $600 million to energy Lower Zakum.

Abu Dhabi National Oil Co. awarded Eni a 10 percent share in the Umm Shaif and Nasr oil fields in the Arabian Gulf for a payment of $575 million, the companies said.

A group of Indian companies paid $600 million for rights to 10 percent of Lower Zakum on February 10, and Japan's Inpex bought the same-sized stake later that month.

Eni is the fourth company to be awarded stakes in the new concessions after the breakup of the original ADMA block, and the first to sign a deal for the Umm Shaif and Nasr concession.

Spanish refiner Cia Espanola de Petroleos SA paid $1.5 billion for a 20 percent stake in the Sateh Al Razboot and Umm Lulu fields in a deal announced February 18.

With its new partners, ADNOC hopes to raise output to 1.125 million b/d, from around 700,000 b/d at present. There is now only 15% of the concession available for pickup. BP has a 10 per cent stake and Rosneft has a 30 per cent interest in the concession. The signing ceremony was presided over by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Paolo Gentiloni, Prime Minister of the Republic of Italy.

The Shorouk concession, located about 190km north of Port Said, contains the Zohr's super-giant gas field, which had started production since last December.

Its portfolio includes the Dolphin Gas Project in the Middle East, enhanced oil recovery operations in Oman along with exploration, development and production in Thailand, Indonesia, Malaysia and Vietnam.

Combined, the fields in question have a target rate of production of 910,000 barrels of oil per day. Its chief executive said the deal was "important and attractive".

ADNOC hopes to increase production at the Umm Shaif and Nasr concession to 460,000 b/d, from around 300,000 b/d now, as well as producing 500 MMcf/d of gas.

Mubadala Petroleum purchased a 10 per cent stake in an Egyptian concession holding the Mediterranean's biggest gas discovery from Italy's Eni, marking the Abu Dhabi hydrocarbons company's first foray into the Arab world's most populous nation. The concession is the only one with any gas potential. "This represents a further signal about the strength and quality of this world-class asset developed by Eni".