ABN - Italian energy firm Eni (BIT:ENI) has sold a stake in Egypt’s Zohr gasfield, worth US$1.1 billion, to state-owned Russian oil giant Rosneft
This sale represents Eni’s ongoing ‘dual exploration model’, which aims to cash in on its most recent discovery, following a similar deal struck last month with BP (LSE:BP).
The British multinational bought a 10% stake in the same gasfield worth $375 million. These two deals combined will reduce Eni’s overall stake in the area to 60%.
Zohr is an offshore natural gasfield located in the Egyptian sector of the Mediterranean Sea and was unearthed in August 2015.
Rosneft CEO Igor Sechin said: “Rosneft participation in the Zohr field, developed jointly by our international partners – is a logical step in the development of our cooperation in Egypt and boosting of the positions of the company at markets on the rise.”
Since its discovery, it has become the largest gasfield in the region, with a total potential of 850 billion cubic metres of gas in place.
Production at Zohr is set to start at the end of 2017 with the gas expected to be used for domestic consumption across Egypt.