MILAN: Italian energy company Eni will sell a 30 percent stake in its giant Egyptian offshore gas field Zohr to Russia’s Rosneft for $1.575 billion, pressing ahead with asset sales to fund investments and offset weak oil prices.
Eni, which owns 90 percent of the Shorouk concession containing Zohr, said Rosneft would pay $1.125 billion cash for the stake and would reimburse investments already carried out by Eni for around $450 million.
The deal comes less than a month after Eni’s sale of a 10 percent stake in Zohr to BP at the same implied price, bringing overall proceeds to around $2.1 billion.
Eni, whose cash flow fell 19 percent in the third quarter due to low oil prices, pledged at the start of the year to sell 7 billion euros ($7.43 billion) worth of assets to 2019 — 5 billion euros in the first two years.
“This is a great success for Eni to receive $2.1 billion for a year’s work and have major partners to share the risk and capex,” said Bernstein oil analyst Oswald Clint.
At 1354 GMT Eni shares were up 4.2 percent while the European oil and gas index was up 2.1 percent.
Oil prices rose as much as 6.5 percent on Monday after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output, though are still well below values above $100 a barrel seen in 2014.
Selling down stakes in oil and gas fields it operates is part of Eni’s so-called “dual exploration” strategy to raise cash to fund development and support dividends. In the last four years, Eni has raised about $6.3 billion in this way.
Zohr, discovered by Eni in 2015, is the biggest gas field in the Mediterranean with an estimated 850 billion cubic meters of gas in place.
The approval process for development of the field was completed in February and first gas should be produced by the end of 2017.
In November, Eni CEO Claudio Descalzi said he wanted to cut Eni’s stake in Zohr to 50 percent.
Rosneft, like BP, has an option to buy a further 5 percent stake.
“We suspect BP and Rosneft will take the additional 5 percent next year given the high return of this field,” said Bernstein’s Clint.
Eni sells 30% stake in Egypt’s Zohr gas field to Rosneft
Eni sells 30% stake in Egypt’s Zohr gas field to Rosneft
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
