Edison, Total, BP Mulls Buying 40% Stake in Zohr
Italian Edison, French Total, and British Petroleum (BP), have requested information about Egypt’s Zohr gas field as they ponder negotiations with Eni over a purchase of 40% of the company’s stake in the Mediterranean Sea concession, offshore Egypt, according to Al-Mal News. The deals are expected to be concluded in 2017.
The share prices vary between $2b and $ 3b promising returns of $7b to $10b over 25 years of the life of the project. Eni is, nonetheless, to remain the main operator in the field.
The Italian giant has announced its plan to sell stakes in several recent discoveries in Egypt and other countries worth $7.7b in total before 2019. The measure is likely the result of the company having recorded losses of $9.7b last year due to low oil prices.
Earlier reports from March indicated that Eni was in talks with Russia’s Lukoil for a potential sale of 20% of Zohr, noted Energy Egypt.