BP has purchased a minority stake in the super-giant Zohr gas field from Italy’s Eni.
The company said on Monday that it has agreed to buy a 10 percent stake in the Shorouk concession in offshore Egypt for $375 million.
The concession holds the Zohr gas field that is believed the be the largest gas discovery ever made in the Mediterranean Sea.
The Zohr field was discovered by Eni in August 2015 and is located in the Mediterranean Sea, about 118 miles north of Port Said in water depths of about 4,921 feet.
So far, six wells have been successfully drilled at the field.
Eni has estimated that total gas resources in place at Zohr stand at about 30 trillion cubic feet.
The first phase of development of Zohr is currently being fast-tracked, with first gas expected in late 2017.
BP said that, at closing, it will reimburse Eni for BP’s share of past expenditure.
As part of the agreement, BP also has an option to buy another 5 percent interest in the concession before the end of 2017 under the same terms.
Eni currently operates the Shorouk concession with a 100 percent interest.
The purchase must still be approved by the relevant Egyptian Government authorities.
The deal is currently expected to be complete in the second quarter of 2017.
“This interest in a truly world-scale asset will complement our existing Egyptian business. We already have a strong partnership with Eni in Egypt and look forward to working closely with them to efficiently bring these important resources to the Egyptian market,” BP chief executive Bob Dudley said.
Dudley added that the first phase of BP’s major West Nile Delta project is on schedule to begin production in 2017.
Production at West Nile expected to be around 1.2 billion cubic feet a day, equivalent to nearly a third of Egypt’s current gas production.
BP’s fast-tracked development of the Atoll gas field is expected to come on stream in 2018, Dudley added.