In line with Eni S.P.A’s plan to raise cash for financing future development projects, the company has decided to sell 10 percent of its Egyptian Zhor gas field stock where it is the main shareholder.
The Italian multinational oil and gas company sells 10 percent of the company stock for $934 million to Mubadala Petroleum, a United Arab Emirates company with assets worth over 125 billion dollars.
According to Eni CEO, Claudio Descalzi, the transaction relating to the Shorouk concession in the Zohr gas field for $934 million ‘represents another sign of the strength and quality of this world-class asset.’
Prior to Eni’s share sale, the Italian company had a 60 percent of shareholding in the block, followed by Rosneft from Russia with 30 percent, while the British BP owns the remaining 10 percent.
The agreement between Eni and Mubadala Petroleum, is in line with Eni’s ‘double exploration’ strategy, where it seeks to sell downward holdings in the fields it operates to raise cash to finance the future development and support dividends.
Zohr gas field which was officially inaugurated on the 31st of January by Egyptian President, Abdel Fattah El Sisi, will increase its production capacity from 350 million cubic feet of fuel per day to 2.7 billion cubic feet of liquefied natural gas (LNG) per day by the end of 2019.