As part of the agreement, BP also has an option before the end of 2017 to buy a further 5-percent interest in the concession under the same terms.
Commenting on the issue, Bob Dudley, BP group chief executive, said that this interest in a truly world-scale asset will complement the company’s 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,” he added.
Dudley pointed out that beyond Zohr, the first phase of the 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.
The Zohr field was discovered by Eni in August 2015. The field is located in the Mediterranean Sea, approximately 190 kilometers north of Port Said. 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 cubic feet of gas. The first phase of development of Zohr is now being fast-tracked, with first gas currently expected in late 2017.
Eni is the operator and currently has a 100-percent 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.
BP has made a series of discoveries in Egypt in recent years including Taurt North, Seth South and Salmon and Rahamat, Satis, Hodoa, Notus, Salamat and Atoll. In June 2016, BP approved the fast-track development of the Atoll Phase One project, expected to begin production in 2018.
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