Mubadala unit agrees deal to buy stake in Egypt gas concession

Mubadala Petroleum says it has agreed with Eni to purchase a 20% interest from its share in the Nour concession
Mubadala unit agrees deal to buy stake in Egypt gas concession
Musabbeh Al Kaabi, CEO of Petroleum and Petrochemicals, Mubadala Investment Company and chairman of the board of Mubadala Petroleum.
By Sam Bridge
Mon 12 Nov 2018 04:48 PM

Mubadala Petroleum has announced that it has agreed with Eni to purchase a 20 percent interest from its share in the Nour concession, an offshore exploration block in Egypt.

Eni is the operator of the concession through its subsidiary, IEOC, state news agency WAM reported on Monday.

In the concession, which is in participation with Egyptian Natural Gas Holding Company (EGAS), Eni holds an 85 percent interest in partnership with Tharwa Petroleum Company, which holds a 15 percent interest.

Musabbeh Al Kaabi, CEO of Petroleum and Petrochemicals, Mubadala Investment Company and chairman of the board of Mubadala Petroleum, said: "This investment enables Mubadala Petroleum to further expand our position in Egypt while deepening our strategic partnership with Eni, the operator of both the Shorouk and Nour concessions.

"This exploration block complements our existing investment in Zohr, supports our growth strategy in Egypt and holds the potential to unlock an additional resource base that could add to our business in the longer term."

The completion of the transaction is subject to the satisfaction of certain customary conditions, including receiving approvals from the relevant Egyptian Government authorities, WAM said.

The transaction would mark Mubadala Petroleum’s second acquisition in Egypt. The company entered the country in June by acquiring from Eni a 10 percent participating interest in the Shorouk concession, which contains the producing world-class Zohr gas field.

Claudio Descalzi, CEO of Eni, said: "This transaction strengthens our partnership after the successful relationship in Zohr and confirms Mubadala Petroleum’s trust in Eni’s robustness as operator, both in projects development and exploration activities."

The Nour exploration block is located approximately 50km offshore in the eastern Mediterranean, in water depth ranging from 50 to 400 metres, and covers a total area of 739 sq km.
Eni and Tharwa Petroleum Company are currently carrying out drilling of the exploration well.

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