Eni buys into Timor Sea Evans Shoal gas field

Eni says it has purchased 32.5% interest in the Evans Shoal gas field in the Timor Sea.

Offshore staff

MILAN, Italy – Eni says it has purchased 32.5% interest in the Evans Shoal gas field in the Timor Sea. The undeveloped field holds an estimated 7 tcf of natural gas.

This past October, Eni agreed with Santos Ltd. to purchase its 40% equity share in the field. The agreement involved an initial payment of $250 million and a contingent future cash payment of up to $100 million subject to a positive final investment decision for the development of Evans Shoal and the level of 2P reserves at FID.

Subject to completion of the purchase of Santos’ interests, in a separate transaction, Eni agreed to sell a 7.5% equity share in exploration permit NT/P48 to Shell Development (Australia) Proprietary Ltd.

Both transactions are subject to normal consents and regulatory approvals.

Following completion of these transactions, the partners in the revised NT/P48 joint venture will be Eni (32.5%), Shell (32.5% and operator), Petronas Carigali (Australia) Pty Ltd (25%), and Osaka Gas Australia Pty Ltd (10%).

11/29/2011

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