Eni to sell $934m stake in Egypt's Shorouk concession to Mubadala Petroleum

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On Sunday Eni also signed a 40-year deal with UAE's Abu Dhabi National Oil Company (ADNOC), awarding it a 10 percent stake in the Umm Shaif and Nasr offshore oil concession and a 5 percent stake in Lower Zakum, for a total participation fee of about $875 million.

Italian energy company Eni SpA won rights to pump oil at two blocks off the coast of Abu Dhabi and sold the Middle Eastern crude producer a stake in Egypt's giant Zohr natural gas field, a deal involving combined payments of $1.8 billion.

ENI paid a participation fee of 2.1 billion dirham (575 million USA dollars) to enter the Umm Shaif and Nasr fields and a fee of 1.1 billion dirham to enter the Lower Zakum.

In both concessions ADNOC owns a 60 percent stake.

Abu Dhabi plans to raise oil-output capacity to 3.5 million barrels a day by the end of the year, even as the UAE curbs production as part of a global effort to clear a glut.

Umm Lulu, the largest single oil field up for offer, has attracted winning bids from an Indian consortium led by ONGC Videsh, and Japan's Inpex. On the other hand, about 30% stake in the Umm Shaif and Nasr concession is still up for grabs.

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Abu Dhabi Crown Prince Sheikh Mohamed Bin Zayed and Italy's Prime Minister Paolo Gentiloni attended the signing ceremony, UAE's state news agency WAM reported.

The awards mark the first time an Italian energy company has been given concession rights in Abu Dhabi's oil and gas sector.

Its portfolio includes the Dolphin Gas Project in the Middle East, enhanced oil recovery operations in Oman along with exploration, development and production in Thailand, Indonesia, Malaysia and Vietnam.

The agreement diversified ADNOC's partnership base, while contributing experience, technology, capital and market access, Jaber said in the statement. The concession is the only one with any gas potential.

Eni has agreed to sell to Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, a 10% stake in the Shorouk concession, offshore Egypt, where Zohr's super-giant gas field is located.

"Eni also believes further collaboration with ADNOC in the downstream would create synergies, bringing mutual benefits from capital, resources and knowledge sharing, and would create significant added value to ADNOC's refining assets", Descalzi said. The Zohr super-giant gas field was successfully started-up in December 2017, in only 28 months after its discovery, and is now producing 400 million scf per day.

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