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Mubadala Petroleum acquires 10% stake in Egypt's Shorouk Concession

13 March 2018

During the signing of the agreement, Crown Prince of Abu Dhabi His Highness Sheikh Mohamed bin Zayed Al Nahyan has been present, alongside Italy's Prime Minister Paolo Gentiloni.

The stake in the offshore Shorouk concession is confirmed to be covering the massive Zohr gas field in the Mediterranean Sea.

Eni, which will have a 50 per cent stake in the concession after the sale to Mubadala Petroleum, is the operator of the offshore concession. It has agreed to buy a 5% stake in the Lower Zakum offshore oilfield and a 10% stake in the offshore Umm. Adnoc will keep a 60 percent stake in each of the new offshore concessions.

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Mubadala Investment Petroleum & Petrochemicals CEO and Mubadala Petroleum chairman Musabbeh Al Kaabi said: "This is an important and attractive investment for Mubadala, adding a world-class asset to our portfolio with long-term cash flows".

H.E. Dr. Al Jaber said: "These agreements underline the worldwide market's confidence in ADNOC's long-term growth plans and the UAE's stable and reliable investment environment".

"Our partnership with Eni, and other concession partners, will enable us to accelerate our growth, increase revenue and improve integration across the upstream value chain, as part of our ongoing transformation and build on the foundations that have been laid to deliver a more profitable upstream business". Adnoc "is looking to find a balance in its strategic partners" between those from major oil-importing nations such as Japan and India and global oil companies with technology and project expertise, he said.

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Eni is active in 73 countries and has operations both upstream and downstream. A group of Indian companies paid $600 million for rights to 10 percent of Lower Zakum on February 10, and Japan's Inpex Corp. bought the same-sized stake last month.

Eni joins an Indian consortium, led by ONGC Videsh, and Japan's INPEX as stakeholders in the Lower Zakum concession.

Rosneft (ROSN.MM) holds a 30 percent share and BP (BP.L) 10 percent.

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"The stakes in the two concessions give access to giant fields with huge potential and Eni is willing to contribute its best technology to maximize the future production", Eni's CEO Claudio Descalzi said in a statement. "This represents a further signal about the strength and quality of this world class asset developed by Eni".

Mubadala Petroleum acquires 10% stake in Egypt's Shorouk Concession