Africa Oil & Gas: Rosneft closes deal to acquire 30% stake in Zohr gas field

 

Workers stand next to logo of Russia's Rosneft oil company at central processing facility of Rosneft-owned Priobskoye oil field outside Nefteyugansk
Rosneft closes deal to acquire 30 percent stake in Zohr gas field

 

Rosneft has closed the deal to acquire a 30% stake in the concessions agreement for the development of the Zohr field, the largest gas field in the Mediterranean Sea, from Italian company Eni.

The cost of Rosneft stake acquisition is USD 1.125 bln. The Company also refunded its share in past project costs to Eni.

The Company becomes a participant of the project to develop the largest deepwater gas field offshore Egypt jointly with other world majors and strategic partners of Rosneft – Eni (60% stake) and BP (10% stake).

The deal will enable the Company to  share significant experience in offshore field development, using existing competencies in offshore production. Participation in the development of a unique production asset will strengthen positions of Rosneft in the strategic markets of Europe and Middle East.

Commenting on the deal, Rosneft Chief Executive Officer Igor Sechin said:

‘Having closed the deal to acquire a stake in the concession agreement for the development of Zohr gas field, Rosneft has entered the world class project. It opens up the opportunities for the Company to reinforce its positions in the promising and strategic region, broadens potential of our trading division and enhances our mutually beneficial cooperation with Egypt’.

Zohr gas field

Zohr gas field was discovered by Eni at the shelf of Egypt in 2015.  The area of the field is 231 km2, its in-place reserves exceed 850 bcm.

On December 12, 2016, during a working visit to Cairo, Rosneft Chief Executive Officer Igor Sechin  informed Egyptian President Abdel Fattah el-Sisi on the agreement for the acquisition by Rosneft from Eni of a stake in the concession agreement for the development of Zohr field and 15% in the project’s operator Petroshorouk, a joint parity enterprise of Eni and EGAS.

Photo - see caption

Location of Shorouk Concession and Zohr gas field (Source: Eni)

In November 2016, BP agreed to buy from Eni a 10% interest in the Shorouk concession offshore Egypt, which contains the super-giant Zohr gas field, for $375 million. BP also reimbursed Eni for BP’s share of past expenditure. Source: Rosneft

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