Eni CEO says gas production of Zohr Field starts by end 2017

CAIRO - 28 March 2017: President Abdel Fatah al-Sisi met with the CEO of Italian oil and gas company Eni, Claudio Descalzi, on Monday in Cairo, according to a Tuesday press release by the presidential office.

The statement said that the meeting was held in the framework of the president’s periodic follow-up on the development of energy projects in Egypt.

The meeting was also attended by British Petroleum (BP) CEO Bob Dudley, and Russian Company CEO Rosneft Igor Sechin, Prime Minister Sherif Ismail, and Minister of Petroleum and Mineral Resources Tarek El-Molla.

Descalzi expected gas production of Zohr field to begin before the end of 2017. The field is believed to have an estimated reserve of 30 trillion cubic feet of gas.

During the meeting, Sisi and Descalzi also discussed Eni's future activities in Egypt, including the two new concession agreements for the north El Hammad and the north Ras El Esh blocks, located on the Mediterranean Sea. Signed in December 2016, the agreement was as a result of the Egyptian Natural Gas Holding company’s (EGAS) 2015 international bid round, according to a

press statement

released on Eni’s official website Monday.

Eni is the operator of the north El Hammad block with an equity of 37.5 percent. BP also holds a 37.5 percent stake, and Total holds 25 percent,

Mubasher

reported.
The Italian company also has a 50 percent stake in the north Ras El Esh block, operated by BP, which also holds a 50 percent equity, the report added.

Sisi praised efforts undertaken by the three oil companies in propping up the Egyptian economy, stressing the importance of the new energy-related discoveries in Egypt in meeting the energy needs required by the increasing growth of the Egyptian economy, closing the local gap and achieving self-sufficiency by the end of 2018, presidential spokesperson Alaa Youssef added, according to the statement.

Eni has been operating in Egypt since 1954 through its Egyptian subsidiary known as IEOC, while BP established its operations in Egypt in 1960 in partnership with Egyptian General Petroleum.

In March, Russian oil producer Rosneft signed a deal to supply 10 liquefied natural gas (LNG) cargoes to EGAS this year, and the first delivery is expected in May,

Reuters reported.