BP has acquired 10% interest in the Shorouk concession which contains the Zohr gas field, offshore Egypt from Eni at a cost of $375 million.

According to the company, as part of the agreement, BP has an option before the end of 2017 to purchase additional 5% interest in the concession under the same terms.

Upon closing of the agreement, BP will reimburse Eni for its share of past expenses, which amounts to about $150 million.

“This interest in a truly world-scale asset will complement our existing Egyptian business. BP has now been in Egypt for over 50 years and we continue to see opportunities to further develop our extensive activities here. 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,” Bob Dudley (photo), BP Group Chief Executive told Offshore Energy Today.

Eni is the operator of the Shorouk concession with 100% interest. The acquisition is subject to approvals from the relevant Egyptian Government authorities and is currently expected to be complete in Q2 of 2017.

Anita Fatunji