Rus­sian Ros­neft buys 30% of Eni stake in Zohr gas field

The Daily News Egypt - - Business - By Mo­hamed Farag

Min­is­ter of Pe­tro­leum-Tarek El Molla signed an agree­ment with Italy's Eni, Rus­sian oil gi­ant Ros­neft and the Egyp­tian Nat­u­ral Gas Hold­ing Com­pany (EGAS), un­der which Ros­neft will ac­quire up to a 30% stake in the Shorouk con­ces­sion for the devel­op­ment of the Zohr gas field in the Mediter­ranean.

Eni will sell the 30% stake for $1.125bn, in ad­di­tion to a $114m of con­ces­sion grant, which is the largest con­ces­sion granted to the oil sec­tor. Ros­neft would re­pay in­vest­ments al­ready paid by Eni, which have reached a to­tal of around $450m, ac­cord­ing to a state­ment by the Min­istry of Pe­tro­leum.

El Molla said the joint in­vest­ments be­tween ma­jor in­ter­na­tional com­pa­nies in the Zohr gas field re­flect pos­i­tively on the speed of ac­com­plish­ing the work in the field, sched­uled to start pro­duc­tion be­fore the end of the year.

The min­is­ter wel­comed the en­try of Ros­neft in the Egypt, stress­ing that the Egyp­tian oil in­dus­try has be­come more at­trac­tive to in­ter­na­tional com­pa­nies and in­vestors af­ter the pos­i­tive re­sults achieved dur­ing the last three years.

He pointed out that the in­crease of ma­jor in­ter­na­tional com­pa­nies’ in­vest­ment will be re­flected on the Egyp­tian econ­omy sig­nif­i­cantly and will in­crease oil and gas pro­duc­tion and re­serves to se­cure the needs of eco­nomic growth of en­ergy sup­plies.

Rus­sian state-run Ros­neft is the world’s largest state-owned oil com­pany in terms of pe­tro­leum pro­duc­tion and re­serves.

Italy’s Eni is the main op­er­a­tor of the Zohr field, with a 60% stake in the Shorouk con­ces­sion, while Rus­sian Ros­neft now has 30% and the re­main­ing 10% is owned by Bri­tish com­pany BP.

Min­is­ter of Pe­tro­leum Tarek El Molla

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