Cabinet denies giving up stake in Zohr gas field to foreign company



Sun, 02 Jun 2019 - 12:48 GMT


Sun, 02 Jun 2019 - 12:48 GMT

Works on Zohr gas field on the Mediterranean- Photo courtesy of Eni website

Works on Zohr gas field on the Mediterranean- Photo courtesy of Eni website

CAIRO - 2 June 2019: The Cabinet's media center revealed Sunday that Egypt did not give up its stake in Egypt’s gas field,Zohr,to a foreign company, stressing that all the rumors on social media are baseless.

Zohr is not the only gas field in Egypt; West Nile Delta (WND), Greater Nooros Area, Atoll Phase 1, and WDDM – Burullus Phase 9B are all important gas fields that add to the national gas production.

Egypt’s total gas production came to 6.6 billion scfd in September, compared to 2017’s average of 5.1 billion scfd and 2016’s 4.4 billion scfd, according to the Petroleum Ministry, meaning that between 2018 and 2017, there was a 29.4 percent year-on-year increase.

Italian Oil Company Enidiscovered Egypt's giant gas field, Zohr, in 2015. In December 2017, the company delivered the first gas production from the field estimated at 30 trillion cubic feet, which makes it the biggest gas field in the Mediterranean region.

In March, Italian Oil Company Eni announced a new gas discovery under evaluation in the Nour exploration prospect located in Nour North Sinai Concession, in the Eastern Egyptian Mediterranean, about 50 km North of the Sinai peninsula.

Eni clarified in a press release that Nour-1 Field Wildcat (NFW), which has led to the discovery, was drilled by the Scarabeo-9 semi-sub in a water depth of 295 meters and reached a total depth of 5,914 meters.

“In the concession, Eni is the operator with a 40 percent stake,in cooperation with Egyptian Natural Gas Holding Company (EGAS), BP holds a 25 percent stake, Mubadala Petroleum holds a 20 percent stake while Tharwa Petroleum Company holds a 15 percent stake of the contractors' share,” the company noted.

It added that the JV Operator will start the feasibility studies to accelerate the exploitation of these new resources, leveraging the synergies with existing facilities and infrastructures, after finalizing the discovery evaluation.

Enihas operated in Egypt through its subsidiary Ieoc since 1954. The company is the country's leading producer with equity above 340,000 barrels of oil equivalent per day that will further growin 2019 with the ramp up of the Zohr Project to production plateau.

Eni CEO Claudio Descalzi said that Eni seeks to pump investments of $3 billion in Egypt during the upcoming period.

Descalzi added that the total investments pumped in Noras and Zohr fields so far have reached $8.4 billion, noting that 70 percent of the company’s investments exist in Egypt.

On the other hand, Cavanna said in April that gas production from the Noras gas field increased to around 1.2 billion cubic feet per day (bcf/day).

Egypt recently signed several oil agreements for the exploration of oil and gas in several areas, including the Mediterranean, Western desert, Nile Delta and the Gulf of Suez.
The number of signed petroleum agreements since 2014 reached 88 and the authority is working on signing 13 new agreements.

In fiscal year 2018/2019, the targeted investments in the petroleum sector are estimated at LE 145.6 billion ($8.12 billion), marking 15.5 percent of the year’s total investments.
Natural gas investments represent 91 percent of petroleum investments, which amounts to LE 132.8 billion.



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