Britain exempted Egypt’s Zohr gas field from its sanctions targeting Russia, adding the project to a list of energy ventures granted special waivers, according to Reuters.
Russia’s state-owned oil giant Rosneft holds a 30% stake in the Zohr field, while BP owns 10%. The field is operated by Italy’s Eni.
Britain and the United States imposed sanctions in October on Rosneft and Lukoil, Russia’s two largest oil producers, as part of efforts to curb Moscow’s energy revenues and pressure it to end the war in Ukraine. Despite Rosneft’s involvement, the Zohr project has been excluded from the scope of the UK measures.
The Zohr field, operated by Eni, is estimated to hold around 30 trillion cubic feet of natural gas, making it the largest gas discovery in the Mediterranean. Although production has declined from its 2019 peak, the field remains a cornerstone of Egypt’s gas output.
According to Asharq, Eni is seeking to produce about 120 million cubic feet of gas per day from two wells at Zohr, located in deep waters of the Mediterranean, by the end of this year. The field currently accounts for approximately 35% of Egypt’s total gas production, estimated at about 4.06 billion cubic feet per day.
Under the amended UK general license issued on Wednesday, payments and commercial operations related to the Zohr field will be permitted until October 2027. The license did not specify the reasons for granting the exemption, Reuters reported.
Other projects exempted from British sanctions include major oil and gas developments in Russia, Kazakhstan, and the Caspian Sea region.
Eni currently has investments worth about $8 billion in Egypt and has recently launched a new exploration campaign in the Mediterranean aimed at boosting the country’s gas production.
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