Russian Oil Company Rosneft Buys 30 Percent Stake in Egypt's Zohr Gas Field

Published October 11th, 2017 - 09:22 GMT
Through this deal, Rosneft has become a partner in the development of the largest gas field in the Mediterranean Sea. (AFP/ File)
Through this deal, Rosneft has become a partner in the development of the largest gas field in the Mediterranean Sea. (AFP/ File)

Russian company Rosneft bought 30 percent of Egypt’s Zohr gas field in the Mediterranean Sea from the Italian company Eni at $1.1 billion, the company announced in a statement on its official website.

The company said in the statement that, through this deal, it has become a partner in the development of the largest gas field in the Mediterranean Sea, along with two other global partners, namely Eni, which owns 60 percent of the project, and BP which owns 10 percent.

The deal will give the Russian company an opportunity to exchange important expertise on the development of offshore fields, and will strengthen its position in the European and the Middle East markets.

According to Rosneft CEO Igor Sechin, the Zohr project will "enhance the position of Rosneft in a region of strategic importance," by expanding the business potential of the company and allowing for added mutual benefit and cooperation with Egypt. 

Rosneft is an integrated oil company majority owned by the Government of Russia.

Production on the field is expected to begin by the end of this year.


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