Eni said production capacity of Egypt’s giant Mediterranean Zohr gas field will rise by September as the Italian oil and gas major posted a surge in second-quarter earnings.
Production at Zohr at the end of the quarter stood at 1.6 billion cubic feet and would reach 2 billion by September, Eni said in its second quarter and first half financial statement. The company also raised 50 million euros ($58 million) as an advance on future gas supplies to Egyptian state-owned partners to finance Zohr capex, Eni added.
The company's oil and gas production rose 5.2 per cent quarter-on-quarter to 1.86 million barrels of oil equivalent per day (boe/d), fuelled by the ramp-up of the giant Zohr gas field off Egypt and helped by new fields in Indonesia, Congo, Ghana and the UAE.
Eni reported a 66 per cent jump in adjusted earnings for the quarter at €767 million. It said its the earnings growth was also underpinned by operating cost reductions which will allow it to fund capital spending plans an pay dividend -- referred to as cash neutrality -- at a Brent price of $55/b this year.
"Eni recorded another period of strong profitability in the second quarter," CEO Claudio Descalzi said in a statement. "Our cash generation also grew significantly, driven by the price of Brent and increased production levels."
Meanwhile, a 10 per cent stake sale in Zohr to Mubadala Petroleum was also completed.
Zohr, located in the offshore Shorouk block about 190 km north of Port Said, was discovered in 2015 and holds an estimated 30 trillion cubic feet of gas.