Abu Dhabi’s Mubadala Energy has completed the acquisition of a 15 per cent participating stake in Egypt’s Nargis Offshore Area concession from Italian energy firm Eni, as the UAE company expands its portfolio in the Eastern Mediterranean.
The exploration block is about 50km off Egypt’s northern coast in the East Nile Delta Basin. It includes the Nargis-1 gas discovery, which was made in early 2023. It is part of a broader push to tap into new reserves by Egypt, which seeks to reverse declining output and become a regional gas hub.
The concession is operated by Chevron, which holds a 45 per cent majority interest. Following the transaction, Eni retains a 30 per cent stake through a subsidiary, while Tharwa Petroleum Company owns the remaining 10 per cent. The financial terms of the transaction were not disclosed.
The deal adds to Mubadala Energy’s portfolio in Egypt and the Eastern Mediterranean. The company also holds a 20 per cent interest in the adjacent Nour concession, also operated by Eni. Mubadala Energy also owns a 10 per cent stake in the Shorouk concession, which is home to the massive Zohr gasfield, the largest in the Eastern Mediterranean.
The acquisition reinforced the company’s long-term commitment to Egypt and added a “high-impact growth opportunity” alongside established international partners in the region, Mubadala Energy chief executive Mansoor Al Hamed said.
Egypt has been working to attract foreign investment into offshore exploration and development as domestic gas production declines and local demand for power rises.
Italy's Eni is also advancing plans for gas developments across the Eastern Mediterranean and North Africa, to fast-track supply into Europe through Egypt’s liquefied natural gas infrastructure, Guido Brusco, Eni's chief operating officer of global natural resources, told The National.
In Egypt, Eni is continuing gas exploration while seeking to maximise output from mature assets, including in the Western Desert, where production records have been set in recent years. Eni is also exploring for more potential within Zohr, which is estimated to hold 30 trillion cubic feet of gas.
Cairo has in recent weeks signed preliminary agreements with Lebanon, Syria, Jordan and Cyprus to supply gas in the future, despite facing shortages at home. Egypt has signed a $35 billion agreement with Israel to import gas from Leviathan to meet its domestic gas deficit.
