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Eni Sells 30% Of Zohr Gas Field to Rosneft For $1.575 Billion

Eni's discovery of the largest gas field ever located in the Mediterranean is quickly paying off as they reportedly have sold a 30% stake to Russia's Rosneft for $1.575 billion.

Italian energy company Eni continues to reap plenty of rewards from the massive Zohr gas field, announcing that they will be selling a 30% stake to Russia’s Rosneft for $1.575 billion.

The Zohr gas field is widely considered as the biggest ever discovered in the Mediterranean and is believed to contain an estimated 850 billion cubic meters of gas. Discovered in 2015, Eni currently owns 90% of the Shorouk concession, where the gas field was discovered, and according to Reuters sold a 10% stake to BP in November for $525 million.

According to Reuters, Rosneft will pay $1.125 billion in cash and would reimburse around $450 million for a 30 percent stake of the Zohr gas field, with an option to buy a further 5 percent in the future.

In the last four year, Eni has raised $6.3 billion deploying a dual strategy of selling down stakes in oil and gas field and using the funding to increase development and support dividends.

As it stands the first gas is expected to reach the market by the end of 2017.