SOCHI, Jun 23 (PRIME) -- Russian oil major Rosneft plans to produce about 9 billion cubic meters (bcm) of gas annually on the Zohr deposit in Egypt, safe for a possible increase of reserves after geological exploration, and sell the gas in Europe among other markets, a source in the company told PRIME Friday.
“At the annual shareholder meeting, (CEO) Igor Ivanovich (Sechin) was talking about participation in strategic project Zohr, from which we will surely export gas, including to the European market and the Middle East, depending on economic attractiveness of export options,” the source said.
He said that the deposit has a vast potential for resource increase after geological exploration.
The deposit with reserves of 850 bcm of gas, was discovered by Italy’s Eni in 2015. In 2016, Eni sold a 10% stake in a concession operating it to BP for U.S. $375 million. BP has an option to buy 5% more in the concession until 2018. Rosneft also entered the project in 2016. The company can buy 30% in the concession agreement and 15% in the project operator for $2.8 billion.
According to earlier reports, Rosneft’s investment in the field can total $4.5 billion over four years.
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