UAE’s Mubadala buys 10% of Zohr field

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The Ministry of Petroleum signed a final agreement to sell 10% of Zohr concession areas to the UAE’s Mubadala Oil Company, according to a statement from the ministry on Wednesday.

The ministry said it has signed a contract with the Italian company Eni and Mubadala and the Egyptian Natural Gas Holding Company (EGAS) to sell 10% of the concession area that includes Zohr field.

The transaction is valued at approximately $934m, next to a signing grant worth $94m.

In March, the Italian company Eni announced the sale of a new stake of 10% of Shorouk concession, where Zohr, the largest natural gas field in the Mediterranean, is located.

The Minister of Petroleum Tarek El-Molla said that the unprecedented results achieved in the field project in all its stages have contributed strongly to increasing the demand of investors to enter as a partner in this giant project and made Egypt the focus of global investments in the oil and gas industry.

He added that the entry of new partners to invest in the oil sector reflects the investment opportunities distinguished by the sector and serves the Egyptian economy significantly during the next phase by taking advantage of the vast experience of new partners.

Mubadala is investing in Egypt for the first time through its partnership in the field.

Mubadala Petroleum is owned by Mubadala Investment Company, which is owned by the government of Abu Dhabi. The company operates in 13 sectors, including energy, in over 30 countries.

Mubadala expressed its interest in the promising investment opportunities in the oil sector in exploration and field development activities, the statement read.

Italy’s Eni, the original owner of the Shorouk concession, currently owns 50% of the area, against 10% for BP (British Petroleum), 30% for Rosneft, and 10% now for Mubadala.

The post UAE’s Mubadala buys 10% of Zohr field appeared first on Daily News Egypt.

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