Published: Thu, March 15, 2018
Hi-Tech | By Ellis Neal

Mubadala, Eni sign deal to purchase stake in Egyptian Shorouk concession

Mubadala, Eni sign deal to purchase stake in Egyptian Shorouk concession

The stake in the offshore Shorouk concession is confirmed to be covering the massive Zohr gas field in the Mediterranean Sea.

Rome-based Eni is the fourth worldwide company to secure rights to one of Adnoc's new offshore concessions and the first to sign up for the Umm Shaif and Nasr block.

Eni discovered the Zohr gasfield, which holds up to 30 trillion cubic feet of gas, in August 2015.

"Our partnership with Eni, and other concession partners, will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain", ADNOC Chief Executive Sultan Al-Jaber said in the statement.

The Abu Dhabi National Oil Company (ADNOC) announced, yesterday, the signing of two historic agreements awarding Italy's multinational oil and gas company Eni stakes in two of Abu Dhabi's offshore concession areas. It split an offshore production concession that expired last week into three blocks, and Eni is the fourth worldwide entrant to secure rights to one of the new areas.

The emirate is seeking partners that can add downstream technology and join projects that will double refining capacity and almost triple petrochemical output, Adnoc said last week.

Group Chief Executive Officer and Managing Director of Mubadala Investment Company, Khaldoon Khalifa Al Mubarak was declared to have signed the deal for Mubadala Petroleum and Claudio Descalzi, Chief Executive Officer of Eni. Tom Quinn, a regional analyst for consultant firm Wood Mackenzie, said in a statement emailed late Sunday to that ENI can balance a North African focus with its deeper push into the Middle East offshore segment. Adnoc "is looking to find a balance in its strategic partners" between those from major oil-importing nations such as Japan and India and worldwide oil companies with technology and project expertise, he said.

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.

ENI paid a participation fee of 2.1 billion dirham (575 million US dollars) to enter the Umm Shaif and Nasr fields and a fee of 1.1 billion dirham to enter the Lower Zakum.

OMV AG, an Austrian energy company nearly 25% owned by Mubadala, is also poised to win a stake in the offshore concessions, people with knowledge of the matter said in February.

Currently, production from the Zohr field is 400 million scf per day.

The award marks Eni's first foray into oil development in the UAE, where Abu Dhabi, the country's largest sheikhdom, holds most of the crude.

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