BP Buys 10% Stake in Egypt Gas Field

BP has reached an agreement with Italian oil company Eni to buy 10% of its Shorouk concession offshore Egypt, which includes the super-giant Zohr gas field, for $375 million. BP will also reimburse Eni for BP’s share of past expenditure, Trade Arabia reported. As part of the agreement, BP also has an option before the end of 2017 to buy a further 5$ interest in the concession under the same terms. The Zohr field was discovered by Eni in August 2015; six wells have so far been successfully drilled on the field. The field is located in the Mediterranean Sea, approximately 190 kilometers north of Port Said in waters approximately 1,500m deep. On the deal, Bob Dudley, BP group chief executive, stated that this stake in a truly world-scale asset will complement its existing Egyptian business. "We already have a strong partnership with Eni in Egypt and look forward to working closely with them to efficiently bring these important resources to the Egyptian market," noted Dudley.