Eni Gets Five New Exploration Licenses In Egypt

Eni Gets Five New Exploration Licenses In Egypt
Eni has been awarded five new exploration licenses by the Egyptian Ministry of Petroleum.

Italian energy major Eni has been awarded five new exploration licenses by the Egyptian Ministry of Petroleum.

Eni said that the licenses, four of which it now operates, were in the Egyptian offshore and onshore, and follow the successful participation in the 2021 competitive Egypt International Bid Round for Petroleum Exploration and Exploitation.

The bidding round was previously announced by the Egyptian General Petroleum Corporation and the Egyptian Natural Gas Holding Company through the Egypt Exploration and Production Gateway.

Two of the licenses are located in the Eastern Mediterranean Sea. Eni holds Block EGY-MED-E5 in a 50-50 partnership with BP while the second block – EGY-MED-E6 – is held by Eni’s subsidiary IEOC in full.

One license is located in the Gulf of Suez – also fully owned by Eni via IEOC. The remaining two licenses are in the Western Desert. The Egy-WD- 7 license is held in a 50-50 partnership with Apex while EGY-WD-9 is another IEOC fully owned license. The total acreage of the licenses is around 3,250 square miles.

According to Eni, the licenses are placed within prolific basins with proven petroleum systems able to generate liquid and gaseous hydrocarbons and can also rely on nearby existing producing and processing facilities and on a demanding market that will allow a quick valorization of the potential exploration discoveries.

“The bid results are aligned with Eni’s strategy to keep exploring and producing gas to sustain the Egyptian domestic market and contribute to LNG export, thanks to the recent restart of the Damietta LNG plant,” the company said.

The LNG plant restarted production in February 2021. The first cargo shipped out after the restart was the first batch of LNG produced at the terminal since its shutdown back in 2012.

It is worth noting that Eni has been present in Egypt since 1954 and is currently the country's main producer with equity hydrocarbon production of around 350,000 barrels of oil equivalent per day.

To contact the author, email bojan.lepic@rigzone.com

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