In 2017, hydrocarbon production was 230 thousand boe/day net to Eni, 12,66% of annual production of hydrocarbons. Eni operates over a total developed and undeveloped area of 25,375 square kilometres (9,192 square kilometres net to Eni).
Exploration activity yielded positive results with the near-field Meleiha South 1X, Aman East 1X and Karnak Deep 1X oil wells in the Meleiha concession (Eni's interest 76%). The discoveries were already linked to the existing production facilities in the area.
Eni closed two agreements with major international players in the oil&gas business for the disposal of a 40% interest in the giant Zohr field, with the approval by Egyptian government. These transactions are a part of Eni's “Dual Exploration Model” which is targeting simultaneously the fast-track development of discovered resources and the partial dilution of the high stakes retained in exploration leases to monetize in advance part of discovered volumes.
The agreements concerned the sale of:
- a 10% interest to BP for a consideration amount of $375 million and the pro-quota reimbursement of past expenditures, which amount so far at approximately $150 million;
- a 30% interest to Rosneft for a consideration amount of $1,125 million and the pro-quota reimbursement of past expenditures, which amount so far at approximately $450 million.
In December 2017, production start-up was achieved by means of offshore wells and subsea facility at the Zohr field (Eni operator with a 60% interest) in a record time-to-market, in less than two and a half years from discovery. The natural gas production is carried by sea-line to the first treatment train of onshore plant with a capacity of approximately 350 mmcf/d. The development plan of the Zohr field includes the construction of additional seven treatment trains that will support production ramp-up to achieve a production plateau of approximately 2.7 bcf/d. Development activities progressed with drilling activities to start-up 20 planned production wells, of which 6 wells already drilled, and the construction of treatment facilities. The field is estimated to have over 30 tcf gas in place (approximately 5.5 billion boe). In March 2018, Eni signed an agreement with Mubadala Petroleum for the divestment of an additional 10% interest in the Zohr gas field for a consideration of $934 million. The transaction is subject to the fulfillment of certain conditions and all necessary authorizations from Egypt's Authorities.
Within the social responsibility initiatives, the renovation of the El Garabaa hospital and the supply of necessary medical equipment were completed. The hospital is located nearby Zohr onshore production facilities. In March 2017, Eni signed a Memorandum of Understanding with the local relevant Authorities. The agreement, which integrates the development activities, is aimed at implementing certain socioeconomic and health programs of local communities in the next four years, in particular in the Zohr and Port Said areas. The programs will be fully financed by Eni and its partners in the Zohr project with an overall expense of $20 million. The defined initiatives concern three main areas:
- aquaculture and fisheries;
- health projects;
- programs to support youth.
In 2018, a hospital and a youth center will be built in the south-western area of Port Said; the start-up of activities to build an aquaculture center nearby to the Zohr onshore plants.
The Baltim South West offshore project (Eni operator with a 50% interest) was sanctioned. The project is located in the Nile Delta and provides to put into production six wells through the installation of a production platform and linkage facilities to the existing gas treatment plant in the Nooros area (Eni's interest 75%).
Other development activities concerned:
- infilling activities and production optimization at the Gulf of Suez (Eni's interest 100%), North Port Said (Eni's interest 50%) and Meleiha (Eni's interest 76%) concessions;
- start-up of three additional wells and the completion of the second and third treatment unit of the Nooros field to achieve a production of approximately 1 bcf/d.
Offices & contacts
Exploration & Production
Ieoc Production B.V.
Building No. 200 and 201, Second Sector of City Centre, Fifth Settlement
Arab Republic of Egypt
P.O. Box: 2 - Fifth Settlement, 11835
Tecnomare Egypt Ltd.
4A St. 200, Degla, Maadi - Cairo, Egypt
Tel. +20 2 7028432
+20 2 7028349
Fax. +20 2 7028461
Gas & Power
Egyptian International Gas Technology Co.
El Teseen -5th Street Settlement Area
Cairo - Egypt