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Italy-based energy company Eni has signed an agreement to sell its 30% participating interest in the Shourouk Concession in offshore Egypt to Russia's Rosneft for $1.57bn. 

Rosneft will pay $1.12bn for its interest, in addition to another $450m to cover development costs that are already incurred by Eni. Rosneft also has an option to buy another 5% stake in the field under the same terms.

The Zohr gasfield is located in the Shourouk block, which Eni currently holds a 90% stake in through its subsidiary IEOC after the recent sale of 10% to BP.

Eni stated that the agreement further confirms the success of its ‘dual exploration model’, which aims at early monetisation of the value through diluting the high participating interest owned in significant exploration discoveries.

"Zohr natural gasfield has a total potential of 850 billion cubic metres of gas in-place."

With this transaction, the model has generated around $6.3bn during the last four years.

Completion of the deal is subject to fulfilment of certain standard conditions, including all necessary approvals from authorities in Egypt.

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By GlobalData

Discovered by Eni in August last year in the Mediterranean, the Zohr natural gasfield has a total potential of 850 billion cubic metres of gas in-place.

The authorisation process for the field development was completed in February last year, with the first gas expected by 2017 year-end.

In Egypt, Eni operates through IEOC Production.