Mubadala buys 10% stake in Egyptian Shorouk concession from Eni

Nellie Chapman
March 13, 2018

In both concessions ADNOC owns a 60 percent stake.

The award marks Eni's first foray into oil development in the UAE, where Abu Dhabi, the country's largest sheikhdom, holds most of the crude.

The Umm Shaif and Nasr, and Lower Zakum concessions, along with the SARB and Umm Lulu concession areas, have been created from the former ADMA offshore concession, with the aim of maximising commercial value, broadening the partner base, expanding technical expertise, and enabling greater market access. The signing was witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces, and His Excellency Paolo Gentiloni, Prime Minister of Italy.

Eni joins an Indian consortium, led by ONGC Videsh, and Japan's INPEX as stakeholders in the Lower Zakum concession.

Zohr field was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of up to 30 Tcf of gas in place.

Stock In Spotlight: Time Warner Inc. (NYSE:TWX)
Carl Tiedemann increased its stake in Time Warner Inc (TWX ) by 31.51% based on its latest 2017Q3 regulatory filing with the SEC. The institutional investor owned 87,060 shares of the media conglomerate's stock after selling 155,000 shares during the period.


Eni is operator with now 60% interest and other partners in the concession are BP with 10% interest and Rosneft with 30% interest.

Italy's Eni is due to sign a contract with state producer Abu Dhabi National Oil Co. for two offshore oil blocks in the Arabian Gulf, according to people with knowledge of the matter.

Eni, which produced an average of 1.8 million b/d of oil equivalent in 2017 from its global operations, has held regular meetings with ADNOC and Mubadala, the emirate's energy and industry investment vehicle, to discuss opportunities for collaboration in the upstream and downstream sectors.

Abu Dhabi's Mubadala Petroleum has struck a deal to acquire a 10% interest in the Shorouk concession from Italian operator Eni.

"The ADNOC deal provides low-risk, long-term barrels, and lays the foundation for Eni's Middle East portfolio", said Tom Quinn, senior research analyst for Middle East upstream at Wood Mackenzie, adding that this was especially notable when compared with its other blocks in Oman and Lebanon which are considered high risk. It split an offshore production concession that expired last week into three blocks, and Eni is the fourth worldwide entrant to secure rights to one of the new areas. "This represents a further signal about the strength and quality of this world class asset developed by Eni".

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER