Eni To Sell A 30% Stake In The Shorouk Concession, Offshore Egypt, To Rosneft

(RTTNews) - Italian oil and gas company Eni SpA (E) said Monday that it agreed to sell to a 30% participating interest in the Shourouk Concession offshore Egypt, where the supergiant gas field Zohr is located, Rosneft. Eni, through its subsidiary IEOC, currently holds a 90% stake in the block following the recent dilution of 10% to BP which completion is ongoing.

The agreed conditions include a consideration of $1.125 billion and the pro quota reimbursement of past expenditures, which amount so far at approximately $450 million. In addition, Rosneft has an option to buy a further 5% stake under the same terms.

The completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorizations from Egypt's authorities.

The Zohr field, located in the Shorouk Concession, was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of 850 billion cubic meters of gas in place. On February 2015, the authorization process for the development of field was completed, while the first gas is expected by the end of 2017.