Rosneft Completes 30% of Zohr Purchase

Rosneft announced on October 9 that it has closed the deal to acquire a 30% stake in the concessions agreement for the development of Zohr field, the largest gas field in the Mediterranean Sea, from Italy's Eni.

The Russian state-run oil giant said the cost of its acquisition is $1.125 bn. It has also refunded its share of Zohr past project costs to Eni.

Rosneft said that, as a result of the acquisition, it becomes a participant of the project to develop the largest deepwater gas field offshore Egypt jointly with both Eni (60%) and BP (10% stake). It called Zohr a "unique production asset [that] will strengthen [the] positions of Rosneft in the strategic markets of Europe and the Middle East."

Rosneft CEO Igor Sechin said: "It opens up the opportunities for the company to reinforce its positions in the promising and strategic region, broadens potential of our trading division and enhances our mutually beneficial cooperation with Egypt."

The deal was first announced in December 2016. Both BP and Eni each have an option to buy an additional 5% Zohr stake from Eni later, which would reduce the Italian firm's stake to 50%.

Mark Smedley