BP has reached an agreement with Italian oil company Eni to buy 10 per cent of its Shorouk concession offshore Egypt, which includes the super-giant 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 per cent 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
km 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.

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 trillion cu ft of gas.

Eni is the operator and currently has a 100 per cent interest in the Shorouk concession. The purchase, which is subject to receiving approvals from the relevant Egyptian Government authorities, is currently expected to complete in the second quarter of 2017.

The first phase of development of Zohr is now being fast-tracked, with first gas currently expected in late 2017.

According to Dudley, BP has now been in Egypt for over 50 years and it continues to see opportunities to further develop its extensive activities there.

"Beyond Zohr, the first phase of our major West Nile Delta 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," he added.-TradeArabia News Service