Egypt: Eni digs in deep offshore with more concessions awarded

Published October 13th, 2015 - 09:01 GMT
Eni has been operational in Egypt since 1954. (File photo)
Eni has been operational in Egypt since 1954. (File photo)

Eni has been awarded with two concession agreements in the Egyptian offshore Mediterranean as a result of the 2015 EGAS bid, the state-controlled company announced in a press release on Monday.

The Italian oil and gas company was awarded a 37.5 percent right in North El-Hammad along with BP (37.5 percent) and Total (25 percent). In the second block in North Ras El-Esh, Eni was awarded 50 percent with the other half held by BP, which will act as an operator.

The North El-Hammad and North Ras El-Esh blocks cover areas of 1,389 and 1,927 square kilometers respectively.

In August, Eni announced it discovered a 30 trillion cubic foot gas field in the Zohr prospect in Egypt's Mediterranean, making it the biggest gas discovery ever in the country.

During Egypt's economic development conference in March the company signed heads of agreement with the Egyptian government worth $5 billion over a period of 4-5 years.

In July, Egypt and Eni signed an update to the head of agreement reached in March, following the discovery of gas reserves of up to 15 billion cubic metres in Egypt's Nile Delta region.

The country garnered some $40 billion in energy deals during the development conference held in March as part of the government's plans to boost an economy battered by more than four years of political upheaval.

Eni has been operating in Egypt through its subsidiary IEOC Production B.V. since 1954 with a current daily production of 200,000 barrels of oil equivalent.


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