The UK has added Egypt’s Zohr gas field, where Russian oil giant Rosneft holds a 30% stake and London-based BP owns 10%, to its list of projects exempt from Russian sanctions.
Rosneft and Lukoil, Russia’s top oil producers, were sanctioned by the UK and the United States in October for their role in financing Moscow’s invasion of Ukraine, according to Reuters report.
The sanctions include financial restrictions on loans and investments, trade limitations on contracts and exports, and asset freezes or travel bans targeting executives and company holdings.
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Licence update
The updated general licence now allows payments and business operations linked to Zohr to continue until October 2027. BP holds its stake in the field alongside majority owner Eni, Rosneft, and other partners.
The licence did not provide a reason for the exemption. Other projects covered under the licence include large oil and gas ventures in Russia, Kazakhstan, and the Caspian region.
In October, the United States also issued general licences permitting ongoing work in major energy ventures such as Tengizchevroil in Kazakhstan, which includes Lukoil, and the Caspian Pipeline Consortium in Russia and Kazakhstan, where Rosneft is a shareholder.
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International law firm Gowling WLG noted that such licences act as “wind-down” or carve-out tools, enabling certain projects to continue under sanctions, helping companies manage compliance and avoid abrupt disruption.
Zohr, operated by Italy’s Eni, is the Mediterranean’s largest gas field with an estimated 30 trillion cubic feet of gas, although production has fallen well below its 2019 peak.
Eni has pledged roughly $8 billion in investment in Egypt and recently launched a Mediterranean drilling campaign to boost output.
