Deal signed to sell part of Egypt's Nour gas field to BP and Mubadala

BP will take 25 percent and Mubadala 20 percent of ENI's 85 percent interest in the field

  
Worker on an offshore oil platform. Image used for illustrative purpose.

Worker on an offshore oil platform. Image used for illustrative purpose.

Getty Images

Egyptian Minister of Petroleum and Mineral Resources Tariq Al-Mulla has signed an agreement with Britain’s BP and Abu Dhabi’s Mubadala to secure stakes in the Nour gas field off the northern Sinai coast.

The companies have bought stakes that are owned by Italian oil & gas company Eni, which currently has an 85 percent stake in the field. Egypt’s Tharwa Petroleum owns the remaining 15 percent.

BP has secured a 25 percent stake in the field, while Mubadala has bought 20 percent, Al Mulla announced during a signing ceremony which took place on Sunday. Following the deal, ENI has kept a 40 percent stake and Tharwa Petroleum retains its 15 percent share.

The Nour field is located in the eastern basin of the Nile Delta, about 50 km from the Mediterranean coast. It has a depth of between 50-400 meters and covers a total area of 739 square kilometers. ENI is currently drilling the initial exploration well in the concession area.

Al Mulla said following the signing that the number and diversity of international companies operating in the region confirms the confidence in the investment climate in the oil and gas industry in Egypt, and helps to diversify the sources of funding for the project. He added that it would also reduce the risk component for partners and offer a diversity of technologies.

The strategy of the Ministry of Petroleum to intensify research and exploration work in the area to support reserves and increase domestic production of oil and gas, securing supply sources both for the needs of the local market and Egypt’s economic development plans.

”The deal is the second acquisition of Mubadala Petroleum in Egypt, where the company began operations there in June 2018, when it acquired a 10 percent stake in Italy's Eni gas field,” the minister told Zawya after the signing ceremony, referring to an earlier deal for a concession in the Shorouk field.

He said the ministry had an ambitious plan to increase investments in the of exploration and development of discovered fields, and increasing local production of oil and gas. 

BP has been working in Egypt for 50 years, focusing on exploration and production. It currently produces almost 15 percent of Egypt’s entire oil production and close to 30 percent of Egypt’s gas production, with its partners. 

The British company discovered the Atoll field, in the North Damietta concession of the East Nile Delta, in 2015. The field has gas reserves of 1.5 trillion cubic feet and 31 million barrels of condensates. 

(Reporting by Marwa Abo AlMajd; Editing by Michael Fahy)

(michael.fahy@refinitiv.com)

© ZAWYA 2018

More From Business