Action ramps up in Egypt as a third production unit comes on stream in the Zohr field

After a record start-up, with production beginning just two and a half years after gas was discovered north of the Egyptian town of Port Said, the project is now ramping up with the aim of production hitting a plateau in 2019. In May 2018, Eni announced the start-up of the third production unit (T-2) in the Zohr field, which will bring the total installed capacity to 1.2 billion cubic feet of gas per day. A few weeks before this, in April 2018, we brought the second unit (T-1) into production, just four months after the official commissioning of the field. Zohr is now producing approximately 200,000 boe/day, of which Eni’s share is currently 75,000. These latest figures boost the exceptional progress of the Zohr field which, as one of Eni’s seven record projects, plays a key role in helping Egypt avoid the need to import liquefied natural gas (LNG).

Zohr: stages of development and the design-to-cost model

Development involves using hi-tech solutions to create infrastructure while meeting time, cost and quality objectives. Thanks to some highly advanced technology we were able to adopt a parallel approach, combining the exploration and development stages (exploration, study of the deposit using 3D models, design of engineering technology and procurement). Initial analysis of the development potential was carried out at the same time as exploration was taking place, collecting the necessary information to improve project engineering and reduce the time required to arrive at the FID. This is the design-to-cost model; dividing up the projects into phases to reduce the risk of damage to the subsoil. As a result of this integrated approach, we arrived at a FID for Zohr in February 2016. The first gas was achieved in late 2017, just over two years from its discovery.

Bold challenge, surprising result

The story of Zohr dates back to 2012, when the field's 15 exploration areas came up for tender. Perforating offshore oil wells in the Mediterranean Sea had never produced good results in the past, but when a new opportunity arose Eni had to decide quickly whether to bid for the tender. Monitoring revealed that a reservoir was concealed in Block 9 and the decision was made to enter the fray. In August 2015, Zohr turned out to be a sensational discovery. Today the deposit is testament to the success of Eni’s dual exploration model, previously used in offshore Mozambique, an area divided up between Eni, CNPC and Exxon Mobil. In 2016, Zohr was the focus of a process that led to minority stakes in the Shorouk concession being sold to BP and Rosneft; the Russian company received 30 per cent and the British giant 10 per cent.

Zohr: the journey from discovery to sale

• The first stage of exploring a new deposit involves selecting key areas of interest based on the results of geological and geophysical research. Acquisition takes place through direct negotiation with the country concerned or as the result of a commercial agreement between oil and gas companies. Alternatively, an international tender is issued by the host country, which is what happened in the case of Zohr.
• Each exploration project is assessed by a team of experts and evaluated for the probability of finding a hydrocarbon deposit. Geological models and analysis of geophysical data are used to define a prospect – an asset with a potential supply of hydrocarbons that is ready for perforation.
• Once the licences and handling of the exploration project have been finalised, the next step is appraisal, involving perforation to confirm whether wells contain hydrocarbon reserves. The first well at Zohr confirmed the hypotheses and the great potential of the project. Two appraisal wells and three development wells were then drilled, to confirm the potential of the block.