ENI in UAE offshore but sells 10% reserve to Egypt

Gentiloni attends, exchange worth 10 bn dollars

12 March, 10:51

    ROME - Italian energy giant Eni is entering in the United Arab Emirates and ''in exchange'' is giving Abu Dhabi a majority stake in the Egyptian Zohr gas field. The company obtained two long-term concessions in the UAE offshore worth 875 million dollars. It also sold for 934 million dollars 10% of the giant gas field off the coast of Egypt to UAE investment group Mubdala.
    The deal enabled the Italian group, on the one hand, to reach its aim of going down to 50% of its stake in Zohr, maintaining the relative majority compared to other partners (Rosneft and Bp), and on the other hand to step for the first time into a country with one of the most significant reserves of hydrocarbons in the world, explained the CEO Claudio Descalzi, to widen the group's presence in the Middle East, ''in line with its ''expansion strategy''.
    And in Abu Dhabi, Descalzi signed with the CEO of State-run company ADNOC, Ahmed al Jaber, two 40-year-long 'concession agreements' to enter the Gulf's offshore with a 5% stake in the Lower Zakum oil reserve and with a 10% stake in the oi and gas fields Umm Shaif and Nasr. The production target of the first block is of 450,000 oil barrels a day, while for Umm Shaif and Nasr the objective is 460,000 oil barrels a day. Premier Paolo Gentiloni travelled to the Gulf to attend the signature which also took place at the presence of Abu Dhabi's Prince Heir Mohamed bin Zayed Al Nahyan.
    As far as Zohr, the agreement provides for Mubadala Petroleum, which is part of the Mubadala Investment Company, an investment arm of the Emirati government, to buy a 10% stake in the concession of Shorouk, in which the large field is situated.
    Production, which has a potential of resources of 850 cubic meters of gas was started last December, 28 months after its initial discovery, a record time according to Eni, and reached the gross production of over 11 million of cubic meters of gas a day. The production will gradually increase to reach its plateau by the end of 2019. The perforation of 20 fields is scheduled by the same year.

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