Italian oil and gas firm Eni said it has produced first gas from Egypt’s supergiant gas field Zohr in a record time of two and a half years for a field of its size.
The discovery with a potential of more than 30 trillion cubic feet of gas in place means Egypt could halt expensive energy imports in coming years and look towards being a self-sustainable.
Discovered in August 2015, Zohr is located in the in the Shorouk Block, offshore Egypt and approximately 190 km north of Port Said.
Eni said Zohr is one of its seven record-breaking projects, which have involved rapid development and production.
Eni said it can benefit from early monetisation of the project thanks to the sale of minority stakes, even as it maintained operatorship of the asset. By parallelising exploration, appraisal and development phases, the time-to market is quicker, equity development cost are lowered, and Eni achieves an accelerated cash flow. This winning combination allowed Eni to generate $9 billion from its exploration activities between 2014 and 2017.
“Today is a historic day for us. It further confirms the capability of Eni’s women and men to turn challenging opportunities into unprecedented achievements,” said Eni’s CEO, Claudio Descalzi.
“This project has been possible exploiting to the maximum level the competences, the skills as well as the human and infrastructural capabilities that this country offers in terms of local content. It will completely transform Egypt’s energy landscape, allowing it to become self-sufficient and to turn from an importer of natural gas into a future exporter.”
Eni holds a 60 per cent stake in Shorouk Block, Rosneft 30 per cent and BP 10 per cent. The company is co-operator of the project through Petrobel, jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Eni and the state company Egyptian Natural Gas holding Company (EGAS).
The company is Egypt’s main producer with an equity production of approximately 230,000 barrels of oil equivalent per day.