Abu Dhabi awards stakes in two offshore concessions to Italy's Eni


Italian oil company Eni (ENI.MI) said on Sunday it would sell a 10 percent stake in the Shorouk concession in Egypt's Zohr gas field to Mubadala Petroleum of the United Arab Emirates for $934 million.

OMV, an Austrian energy company nearly 25 percent owned by Mubadala, is also poised to win a stake in the offshore concessions, people with knowledge of the matter said in February.

"This is an important and attractive investment for Mubadala, adding a world-class asset to our portfolio with long-term cash flows", said Musabbeh Al Kaabi, chairman of Mubadala Petroleum and chief executive of petroleum and petrochemicals at Mubadala Investment Company.

The Italian energy giant is now holds a stake of 60% via its subsidiary IEOC with the other partners being Rosneft and BP, which own stakes of 30% and 10%, respectively.

The Zohr gas field was discovered in 2015 and began production in December past year.

Mubadala said the completion of the transaction was subject to conditions including approval from the Egyptian government.

Dr. Sultan Ahmed Al Jaber (front R), ADNOC Group CEO, and Claudio Descalzi (front L), CEO of Eni, sign historic agreements awarding Eni stakes in two of Abu Dhabi's offshore concessions, witnessed by H.H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces (back center R), and H.E. Paolo Gentiloni, Prime Minister of Italy (back center L). The field is located approximately 190 km north of Port Said in waters approximately 1,500 m deep.

"We are pleased to be working with Mubadala and welcome them into the partnership for the Shorouk concession", said Mr Descalzi.

"Eni also believes further collaboration with ADNOC in the downstream would create synergies, bringing mutual benefits from capital, resources and knowledge sharing, and would create significant added value to ADNOC's refining assets".

Cia Espanola de Petroleos, a Spanish refiner owned by Mubadala, paid $1.5 billion for a 20 percent stake in Abu Dhabi's Sateh Al Razboot and Umm Lulu fields in a deal announced February 18.

Eni is the fourth company to be awarded stakes in the new concessions after the breakup of the original ADMA block, and the first to sign a deal for the Umm Shaif and Nasr concession.

Combined, the fields in question have a target rate of production of 910,000 barrels of oil per day.