CAIRO, Egypt – BP has agreed to acquire a 10% interest from Eni in the Shorouk concession offshore Egypt for $375 million.
The concession contains the giant Zohr gas field. On closing of the deal, BP will also reimburse Eni for BP’s share of past expenditure.
There is an option to take a further 5% interest in the concession under the same terms.
Bob Dudley, BP group CEO, said: “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 fasttracked development of the Atoll gas field is expected to come onstream in 2018.”
Eni discovered Zohr in August 2015, and has to date drilled six successful wells on the field. The location is in the Mediterranean Sea, 190 km (118 mi) north of Port Said in around 1,500 m (4,921 ft) of water.
In place reserves are thought to be about 30 tcf. First gas from the current first-phase development is scheduled for late 2017.
BP’s purchase, although subject to approvals from Egyptian government authorities, is due to be complete during 2Q 2017.