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.
Abu Dhabi National Oil Co. awarded Eni a 10% share in the Umm Shaif and Nasr oil fields in the Persian Gulf for a payment of $575 million, the companies said. Rome-based Eni will also take a 5% stake in the Lower Zakum deposit for $300 million, they said.
At the same time, Abu Dhabi government-owned Mubadala Investment Co. agreed to pay Eni $934 million for 10% of Egypt’s Shorouk concession, the Mediterranean area containing the Zohr gas field, Eni and Mubadala said in separate statements.
Eni’s 40-year oil contract with Abu Dhabi will give it long-term access to crude and enable the company to expand its regional business, said Tom Quinn, a Dubai-based analyst at consultant Wood Mackenzie Ltd. Eni produces crude and gas in Libya and oil in Iraq, in addition to its operations in Egypt, where it started producing gas from the giant offshore Zohr field in December. Read More