Eni Makes Mega Gas Discovery Off Egypt

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Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity, fuels and chemical products.  The government of Italy owns 30% share of the company.  Eni has been leading in offshore oil field explorations, and their 85 trillion cf gas finding in 2011 in Mozambique is noteworthy.

Eni has had close ties with Egypt and has been one of their primary energy producers for the past 60 years.  Their daily output is about 200000 barrels of oil equivalent. Eni signed an MOU with the Government of Egypt in June 2015 to explore in the areas of Sinai, Gulf of Suez and the Mediterranean, in the Nile Delta.

The recent discovery of “Zohr” oil fields at a depth of 1450 meters in the Mediterranean Sea is said to be one of the world’s largest natural gas finds.  The expectation is that the oil fields could hold more than 30 trillion cubic feet of gas in a 100 square kilometre area.  Eni, as per the contract has full concession rights to the Zohr oil fields.  Anticipation states that more gas may be uncovered in the upcoming drilling activities.

In the recent past, the Mediterranean has proved to be a treasure trove for other natural gas fields.  This discovery is expected to help resolve the perpetual energy crisis that Egypt has been going through in the past few years.  This situation could mean lesser dependence on Russian gas imports.  It could also have a positive impact on Egypt’s economy that has been facing an energy crisis that has crippled production and progress.

Claudio Descalzi, CEO of Eni, who met the Egyptian President Abdel Fattah al-Sisi to discuss the find, is quoted to have said “This historic discovery will be able to transform the energy scenario of Egypt.”

Source: Reuters

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