BP to Buy 10% Stake in Eni's Giant Zohr Gas Field Off Egypt Coast
November 25 2016 - 1:04PM
Dow Jones News
By Sarah Kent
LONDON -- BP PLC has agreed to buy a 10% stake in Eni SpA's
super-giant Zohr gas field offshore Egypt, expanding an already
extensive footprint in the country.
The $375 million stake in the Shorouk concession will give BP
access to one of the biggest gas discoveries in recent years. The
Zohr field was discovered by Eni in 2015 and is thought to hold
roughly 30 trillion cubic feet of gas.
The Italian oil company has said it will sell EUR7 billion in
assets by 2019, largely through divesting stakes in recently
discovered fields, to help it weather a dramatic crash in oil
prices and to finance future developments.
Under the terms of the Egyptian deal, BP will retain the right
to buy another 5% stake in the concession before the end of 2017.
The British oil giant will also reimburse Eni for its share of past
expenditure once the deal closes.
"This interest in a truly world-scale asset will complement our
existing Egyptian business," BP CEO Bob Dudley said in a press
release. The company has highlighted its gas interests in Egypt as
an attractive example of a region where it's been possible to
fast-track the development of discoveries and quickly generate cash
in a low-oil-price environment. First gas from Zohr is expected
late next year.
The deal is expected to complete in the second quarter of 2017,
subject to regulatory approval.
Write to Sarah Kent at sarah.kent@wsj.com
(END) Dow Jones Newswires
November 25, 2016 12:49 ET (17:49 GMT)
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