Abu Dhabi’s Mubadala acquires 10% stake in Egypt gas concession from Italy’s Eni

Abu Dhabi’s Mubadala Petroleum has announced an agreement to acquire a 10 per cent stake in an Egyptian concession holding the Mediterranean’s largest gas field from Italy’s Eni.

The stake in the offshore Shorouk concession would mark Mubadala Petroleum’s entrance in the Egyptian market and is being acquired for $934m, according to media reports.

Eni discovered the Zohr gas field the concession encompasses in August 2015 some 190km north of Port Said at a depth of approximately 1,500m.

Production of the first phase began in December. The field has a potential 30 trillion cubic feet of gas in place.

The Italian firm owns owns 60 per cent of the Shorouk concession, with Rosneft holding 30 per cent and British Petroleum 10 per cent.

Mubadala said the completion of the transaction was subject to conditions including approval from the Egyptian government.

“This is an important and attractive investment for Mubadala, adding a world-class asset to our portfolio with long-term cash flows,” said Mubadala Investment Company CEO for petroleum and petrochemicals Musabbeh Al Kaabi.

“We are joining a strong partnership with Eni as operator, who have delivered the project in record time and with the full support of the Egyptian authorities. This is an investment in Egypt in a project that will help meet the country’s growing energy demand while it is reshaping the energy sector and opening new opportunities across the full energy value chain.”

The deal coincides with the awarding of stakes in two of Abu Dhabi National Oil Company’s new offshore concessions to Eni for $875m.

Read: Abu Dhabi awards offshore concessions to Italy’s Eni for $875m

ADNOC Offshore will operate both under a 40-year agreement backdated to March 9.