Abu Dhabi’s Mubadala has completed its acquisition of a 10 per cent interest in an Egyptian concession holding the Mediterranean’s largest gas field from Italy’s Eni.
The stake in the offshore Shorouk concession marks Mubadala Petroleum’s entrance in the Egyptian market and was acquired for $934m, according to media reports when the deal was announced in March.
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.
The first phase of production began in December. The field has a potential 30 trillion cubic feet of gas in place.
After the acquisition, Eni still owns 50 per cent of the concession, Russia’s Rosneft and British Petroleum 10 per cent.
“The acquisition of a 10 percent interest in the Shorouk concession with the producing Zohr gas field is a significant portfolio addition for Mubadala Petroleum and marks our entry into Egypt,” said Mubadala Petroleum CEO Bakheet Al Katheeri.
“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.”
Production at Shorouk is expected to increase to 2 billion cubic feet of gas by the end of 2018 and plateau at 2.7 billion by the end of 2019.
The deal coincides with the awarding of stakes in two of Abu Dhabi National Oil Company’s new offshore concessions to Eni for $875m.
ADNOC Offshore will operate both under a 40-year agreement backdated to March 9.