MEOG: Eni farms down Ghasha stake

Italian major Eni this week farmed down its 25% stake in Abu Dhabi’s giant offshore Ghasha concession, which contains the Dalma, Ghasha, Hail, Mubarraz, Nasr and Satah al-Razboot (SARB) fields.

Eni will retain 10% in the project with 15% understood to have been acquired by the gas arm of Abu Dhabi National Oil Co. (ADNOC). Following completion of the deal, ADNOC Gas will hold 70% and be the operator, with German firm Wintershall Dea (10%), Austria’s OMV (5%) and Russian company Lukoil (5%) also joining Eni.

Despite the farm-down, Eni told media it remains committed to the project, noting in comments carried by the MEED intelligence agency that “equity gas production is one of the pillars which Eni has been leveraging to face the energy trilemma, particularly within the current geopolitical developments.”

Meanwhile, Wintershall Dea is understood to have been seeking to withdraw from the concession for some time amid delays and cancellations.

In May last year, ADNOC terminated pre-construction contracts awarded for the multi-billion-dollar Hail and Ghasha sour gas development months earlier, shortly before relaunching the project, which is the world’s largest offshore sour gas development.