Italian energy group Eni has discovered the largest known gas field in the Mediterranean off the Egyptian coast, predicting that the find could help meet the North African nation’s gas needs for decades to come
The ‘super giant’ offshore Zohr field is predicted to hold 849.5bn cu/m of gas, covering an area of about 100 sq km.
“Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural gas finds,” Eni revealed, adding that it had full concession rights to the area.
The find is expected to have a major impact on the region’s economy and potentially offer Europe new supply options, allowing it to lessen its dependence on Russian gas imports.
It also represents a major boost for Egypt, where power cuts caused by gas and oil shortages have often fuelled unrest, Reuters reported.
Eni said that the discovery was located at a depth of 1,450 metres, adding that it planned to fast track development of the site, using existing infrastructure. It said yet more gas might be uncovered in future drilling.
Eni is the biggest foreign oil and gas producer in Africa, where it has significant operations in Libya. It has been operating for more than 60 years in Egypt and is one of the main energy producers in the country with 200,000 boepd.
In June this year, it signed an energy exploration deal with Egypt worth US$2bn, allowing Eni to explore in Sinai, the Gulf of Suez, the Mediterranean and areas in the Nile Delta.
“This historic discovery will be able to transform the energy scenario of Egypt,” said Eni CEO Claudio Descalzi.
Santander analyst Jason Kenney said that the Egypt discovery was material and supportive of deep value for Eni. He added that Eni is very likely to look at monetising a sizeable stake, possibly 30-40 per cent within three to four years.
