Italian oil and gas company Eni has agreed to sell its 10% participating interest in the Shorouk Concession to BP.

The Shorouk Concession in offshore Egypt holds the Zohr gasfield.

Currently, Eni holds complete stake in the block through its subsidiary IEOC.

The agreed terms include a consideration of $375m and the pro-quota reimbursement of past expenditures that cumulated to nearly $150m.

In addition, BP has an option to buy a further 5% stake under the same conditions.

"Zohr field holds a potentiality of around 850 billion cubic metres of gas in-place."

The deal is in line with Eni’s ‘dual exploration model’ that emphasises early monetisation of the value through the dilution of recent huge exploration discoveries where it holds high participating interests.

Completion of the transaction is subject to fulfilment of all standard conditions, including necessary approval from the concerned authorities of Egypt. 

Zohr field was discovered by Eni in August 2015, and is one of the largest natural gasfield in the Mediterranean Sea. It holds a potentiality of around 850 billion cubic metres of gas in-place.

The authorisation procedure was completed in February 2016, with the first gas expected by the end of next year.

Eni is operating in Egypt since 1954 through IEOC Production BV.

In 2015, the equity production was nearly 200,000 barrels of oil equivalent a day.