Rosneft buys stake in Egypt offshore gas project from Eni for $2.8 bln

Rosneft approved the acquisition of a stake in the Shorouk gas field for $2.8 bln.

Rosneft approved the acquisition of a stake in the Shorouk gas field for $2.8 bln.

Reuters
Russian company buys stake in Shorouk gas field

The board of directors of Rosneft approved the acquisition of a stake in the Shorouk gas field in the Egyptian offshore area from Italy’s Eni for $2.8 billion, the Russian company said in a statement.

In particular, the board approved the purchase of a 30 percent stake in the concession agreement regarding the Shorouk bloc in Egypt, as well as the acquisition of 15 percent of shares in a joint venture, created by IEOC Production B.V. and Egyptian Natural Gas Holding Company, which is the operator of the project on the stage of its development.

Rosneft also has been given an option to acquire a 5 percent stake in the concession agreement and 2.5 percent of the joint venture before Dec. 31, 2017.

The transfer of shares should take place within one year since the signing of the agreement, full payment should be made not later than May 31, 2018.

Earlier it was reported that the board of directors of Rosneft will consider an option to buy up to 35 percent in the concession agreement of the Shorouk gas fields in the offshore area of Egypt.

In late November, BP said that it plans to buy 10 percent in the concession agreement on Shorouk from Eni for $375 million.

Shorouk is part of Zohr, which is the largest gas field in Egypt.

According to Eni, which reported the discovery of the field in August 2015 its reserves may amount to 850 billion cubic meters.

Source: TASS

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