BP has agreed to buy a 10% interest in the Shorouk concession offshore Egypt, containing the super-giant Zohr gas field, for US$375 million.
As part of the deal with Eni, BP will also reimburse Eni for BP’s share of past expenditure. BP also has an option to buy a further 5% stake under the same terms.
The Zohr field was discovered by Eni in August 2015; six wells have so far been successfully drilled on the field. The field is in the Mediterranean Sea, about 190km north of Port Said in 1500m water depth.
Thought to be the largest gas discovery made in the Mediterranean, Eni has estimated total gas resources in place in Zohr to be approximately 30 Tcf. The first phase of development of Zohr is now being fast-tracked, with first gas currently expected in late 2017.
BP CEO Bob Dudley said: “This interest in a truly world-scale asset will complement our existing Egyptian business. We already have a strong partnership with Eni in Egypt and look forward to working closely with them to efficiently bring these important resources to the Egyptian market.
“BP has now been in Egypt for over 50 years and we continue to see opportunities to further develop our extensive activities here. Beyond Zohr, the first phase of our major West Nile Delta project is on schedule to begin production next year and the fast-tracked development of the Atoll gas field is expected to come on stream in 2018.”
Eni is the operator and currently has a 100% interest in the Shorouk concession. The purchase, which is subject to receiving approvals from the relevant Egyptian Government authorities, is currently expected to complete in Q2 2017.