Eni has completed the sale of 10% of its stake in the Shorouk concession offshore Egypt to Mubadala Petroleum, a subsidiary of Mubadala Investment Company.

This concession is where Zohr gas field is located.

Eni, through its unit IEOC, holds a 50% stake of contractor’s share, while Rosneft holds a 30% stake, BP and Mubadala Petroleum have 10% interests each.

The project, after a start-up of less than two-and-a-half years following discovery, is presently in its ramp-up phase with the intention of touching two billion cubic feet of gas per day (bcfd) of total installed treatment capacity by the end of 2019, and a production plateau of 2.7bcfd by the end of next year.

Eni chief executive officer Claudio Descalzi said: “We welcome today’s announcement with Mubadala Petroleum, a strong and reliable partner with whom we look forward to working with.

“Working alongside significant partners such as Mubadala Petroleum, BP and Rosneft is a further boost for the development of Zohr and underlines the quality of the asset, which will play a fundamental role in supporting Egypt’s goal of achieving energy independence.”

“We welcome today’s announcement with Mubadala Petroleum, a strong and reliable partner with whom we look forward to working with.”

Mubadala Petroleum chief executive officer Dr. Bakheet Al Katheeri said: “The acquisition of a 10% interest in the Shorouk concession with the producing Zohr gas field is a significant portfolio addition for Mubadala Petroleum and marks our entry into Egypt.

“This world-class asset will provide Mubadala Petroleum with increasing future production, and substantial reserves, all of which support our drive for long-term and profitable growth. At the same time we have joined a world-class partnership with Eni and look forward to working closely with them to deliver the resources to meet growing local energy demand.”

Zohr’s production is currently more than 1.1bcfd, corresponding to 200,000 barrels of oil equivalent per day.

The project is carried out by Petrobel, the operating company that is jointly owned by Eni and state-run Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, which in turn is jointly owned by the contractor (Eni and its partners) and state-run Egyptian Natural Gas Holding Company (EGAS).

Eni has been operating through its subsidiary IEOC Production BV in Egypt since 1954. The company is the primary producer in the country with an equity production of nearly 300,000 barrels of oil daily.