BP has agreed to buy from Eni a 10% interest in Egypt’s Shorouk concession, which contains the supergiant Zohr gas field, for $375 million. On closing, BP will also reimburse Eni for BP’s share of past expenditure.

As part of the agreement, BP also has an option, before the end of 2017, to buy a further 5% interest in the concession under the same terms.

Bob Dudley, BP group chief executive, 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’>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.”

Zohr field was discovered by Eni in August 2015; six wells have so far been successfully drilled on the field. The field lies in the Mediterranean Sea, approximately 190 km north of Port Said in waters approximately 1,500 m deep.

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 expected in late 2017.

Eni is the operator and currently has a 100% interest in the Shorouk concession. BP’s purchase is expected to close in the second quarter of 2017.

Source: www.worldoil.com