Eni Sells 10% Shorouk Concession Stake for $934 Million; Buys Abu Dhabi Concessions

   By Marc Bisbal Arias

Eni SpA (ENI.MI) said Sunday that it would sell a 10% stake in the Shorouk concession, offshore Egypt, to Mubadala Petroleum for $934 million, and announced separate purchases in two Abu Dhabi concessions for $875 million.

Eni is the operator of the Shorouk concession and currently holds a 60% stake in it through its subsidiary Italian Egyptian Oil Company. Rosneft Oil Co. (ROSN.MZ) and BP PLC (BP.LN) hold a 30% and 10% stake respectively.

Mubadala Petroleum is a subsidiary of Mubadala Investment Co. The stake sale in the Shorouk concession is subject to regulatory approval.

In a separate release on Sunday, Eni said it agreed to acquire a 5% stake in the Lower Zakum offshore oil field, and a 10% stake in the oil-and-gas offshore fields of Umm Shaif and Nasr, all offshore Abu Dhabi, for about $875 million and a duration of 40 years.

The Italy-based company said that the agreements are in line with its expansion strategy to gain access to a country rich in hydrocarbon reserves.

Write to Marc Bisbal Arias at marc.bisbalarias@dowjones.com

(END) Dow Jones Newswires

March 12, 2018 03:30 ET (07:30 GMT)

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