Eni gains stronger position in Egypt

Italian company said it's committed to further exploration work in the Mediterranean region.
By Daniel J. Graeber  |  Dec. 28, 2016 at 8:25 AM
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MILAN, Italy, Dec. 28 (UPI) -- Italian energy company Eni said it continued its track record of success in the Mediterranean Sea by securing two new agreements in an Egyptian auction.

Eni secured the bulk of the new exploration and production concessions offered by the Egyptian government during the latest bidding round. Both agreements cover acreage in the shallow waters of the Mediterranean Sea.

Those agreements follow blocks awarded onshore in the Western Desert and in the deep waters of the Mediterranean.

"They strengthen Eni's portfolio and positioning in Egypt, a country of historic and strategic importance, and further confirm the company's commitment to pursue new exploration," the company said in a statement.

Eni serves as the operator of the two fields in partnerships that include British energy company BP and French supermajor Total as minority players. The company offered no reserve estimate for the new concessions, but said it's one of Egypt's top producers with equity production of around 224,000 barrels of oil equivalent per day.

Eni received consent from the Egyptian government to lay the groundwork for developing the field in early 2016. It made its initial gas discovery in the Zohr field in August 2015 and quickly described it as the largest ever made in regional waters and potentially the largest in the world.

A framework deal signed last year called for up to $5 billion in total investments in offshore Egypt.

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