Overview

Egypt
We have been present in Egypt since 1954 with exploration and production activities, as well as in the Gas & Power sector. Our major production activities are located in the Gulf of Suez with the production of oil and condensates and in the Nile Delta concessions, producing mainly gas. In March 2015 we signed an agreement with the Egyptian Ministry of Petroleum and Mineral Resources for the development of oil resources in the country that foresees total investments of an estimated value of about $5 billion to 100%.

Exploration & Production

In 2015, hydrocarbon production was 189 thousand boe/day net to Eni, 11% of annual production of hydrocarbons. Eni operates over a total developed and undeveloped area of 23,452 square kilometres (9,668 square kilometres net to Eni). Eni’s main producing activities are:
  • in the Gulf of Suez, mainly in the Belayim field (Eni 100%) and in the Western Desert, primarily in the Melehia (Eni 76%) and Ras Qattara (Eni 75%) concessions, with the production of oil and condensates 
  • in concessions in the Nile Delta of North Port Said (Eni 100%), El Temsah (Eni 50%, operator), Baltim (Eni 50%, operator) and Ras el Barr (Eni 50%) mainly for the production of gas. In 2015, production from these concessions accounted for about 92% of total production net to Eni in the country.

In March 2015, Eni and the Egyptian Ministry of Petroleum and Mineral Resources signed a framework agreement, which comprises a plan to invest up to $5 billion (at 100%) in the development of the Country’s oil and gas reserves over the next few years. The agreement also includes a revision of certain Eni’s ongoing oil contracts, with the economic effects retroactive to January 1, 2015. The agreement also comprises the identification of new measures to reduce overdue amounts of trade receivables relating to hydrocarbons supplies to Egyptian state-owned companies. In November 2015, as foreseen in the agreement, Eni signed three amendments for the concessions of Sinai 12 (Eni’s interest 100%) and Abu Madi (Eni’s interest 75%), North Port Said and Baltim, for the realization of projects to be implemented in the next years and to support the increasing energy needs of Egyptian local demand. In addition, Eni signed a new Concession Agreement for the Ashrafi area (Eni’s interest 25%). Certain planned activities are currently in the execution phase and one additional well in Baltim concession has already been put into production.

Exploration activities yielded positive results with the giant Zohr gas discovery, in the operated Shorouk licence (Eni’s interest 100%) located in the deep offshore of Mediterranean Sea. This field is estimated to retain 30 trillion cubic feet of gas in place. The discovery could grant energy independence to the Country for many years to come. In February 2016, the Egyptian Ministry of Petroleum and Mineral Resources has approved to award to Eni the Zohr Development Lease that allows the start-up of the development program at the Zohr gas field. The first gas is expected at the end of 2017. In addition, appraisal activity yielded positive results with the Zohr 2X well, the first delineation well. The delineation campaign provides the drilling of three additional wells.

During the year, Concession Agreements were ratified for the following blocks: 
  • the Southwest Melehia (Eni’s interest 100%) in the western desert; 
  • Karawan (Eni operator with a 50% interest) and North Leil (Eni’s interest 100%) in the deep offshore of Mediterranean Sea;
  • North El Hammad (Eni operator with 37.5% interest) and North Ras El Esh (Eni’s interest 50%) in the offshore Nile Delta, which is still expected to be ratified by the Country’s Authorities.
Exploration and production activities in Egypt are regulated by Production Sharing Agreements.

Gulf of Suez

Production in this area comes mainly from the Belayim field, the first major oil discovery in the country, which, in 2015, produced about 97,000 barrels/day (64,000 boe/day net to Eni). Infilling well drilling operations have been completed in the Belayim area in order to optimise the recovery of residual mineral potential. Exploration activities yielded positive results at the ARM-14 well, with an oil discovery in the Abu Rudeis concession (Eni 100%), which is already connected to the area’s production facility, making it possible to double production from the field.

Nile Delta

North Port Said

Production for the year amounted to approximately 25 kboe/d (approximately 18 kboe/d net to Eni), approximately 106 mmcf/d of natural gas and approximately 3 kbbl/d of condensates. Part of the production of this concession is supplied to the United Gas Derivatives Co (Eni’s interest 33.33%) with a treatment capacity of 1.3 bcf/d of natural gas and a yearly production of 380 ktonnes of propane, 305 ktonnes of LPG and 1.5 mmbbl of condensates.

Development activities performed have aimed at supporting current gas production.

 

Baltim

In 2015 production amounted to approximately 40 kboe/d (approximately 12 kboe/d net to Eni); approximately 177 mmcf/d of natural gas and 5 kbbl/d of condensates.
Development activities performed have aimed at supporting current gas production.

 

Ras el Barr

In 2015, the production amounted to approximately 83 kboe/d (approximately 25 kboe/d net to Eni), mainly gas from Ha’py, Akhen, Taurt and Seth fields.
During the year, sub-sea END Phase 3 project was started up.

 

El Temsah

This concession includes the Temsah, Denise, Tuna and Deka fields. Production in 2015 amounted to approximately 115 kboe/d (approximately 32 kboe/d net to Eni); approximately 600 mmcf/d of natural gas and approximately 3 kbbl/d of condensates net to Eni.
Development activities concerned infilling activity in order to optimize the residual mineral potential recovery.

Exploration in the Nile Delta

Exploration activity yielded positive results with a gas discovery in the Nooros exploration prospect, located in the Abu Madi West license (Eni’s interest 75%). This field is estimated to retain approximately 530 billion cubic feet of gas in place with upside, and associated condensates. The discovery was put into production in two months time through a tie-in to the existing Abu Madi gas treatment plant. In February 2016, a new success exploration was achieved with the drilling of the Nidoco North 1X well. Production start-up is expected in the second quarter 2016 and will allow to achieve an overall production of 45 kboe/d in the area.

 

Western Desert

Other operated production activities are located in the Western Desert, in particular in the Melehia, Ras Qattara, West Abu Gharadig (Eni’s interest 45%) and West Razzak (Eni’s interest 100%) development permits containing mainly oil. Concessions in the Western Desert accounted for approximately 15% of Eni’s production in Egypt in 2015.
Development activities included infilling activities in order to optimize the mineral potential recovery factor, particularly in the Meleiha concession.
Exploration activity yielded positive results with an oil and gas discovery with the Melehia West Deep well in the Melehia concession.

Offices & contacts

Exploration & Production
Ieoc Production B.V.
BIT. box, 52
1, Road 204
Degla Square
11742 Maadi
Cairo
Tel. (0020) 2 7057171

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.
Gastec Building
El Teseen -5th Street Settlement Area
Cairo
Egypt
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