But it is good news for Eni that the Italian company has found another slug of it.
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Eni will achieve a “significant level” of production at Zohr in about 2018 or 2019, as the deposit lies close to fields that are already in operation and can be tied into their infrastructure, London consultant Energy Aspects Ltd. said in a report published Monday. Had he not heard ENI’s assertion that the Zohr well would meet Egypt’s gas needs for decades?
Eni will complete the drilling activities early next year, where three wells will be drilled for a quick detection of further discoveries by utilising the available infrastructure. The brand new fuel discovery can be used to generate electrical energy but in addition gasoline business, whose progress has been lagging as a effect of shortages.
“We must approve the gas road map and strengthen the Israeli gas industry”, he said referring to a cabinet-backed deal to develop Israel’s Tamar and Leviathan reserves.
“Egypt will not need to import gas from Israel, and it might be able to restart some gas exports”, said Robin Mills, a non-resident fellow for energy at the Brookings Doha Center.
Eni said the discovery made in its prospect “in the deep waters of Egypt” could hold a potential 30 trillion cubic feet of gas over an area of 100 square kilometers (38.6 square miles). That’s more than half of Norway’s average shipments to the United Kingdom.
Israeli media described yesterday as a black day for Tel Aviv’s energy shares. “This historic discovery” will transform the energy industry in Egypt, he said.
EFG Hermes Holding SAE, the Egypt’s biggest investment bank, forecast the field could yield $48 billion of revenue for the government.
According to Reuters Africa, Italian, state-controlled integrated oil and gas company Eni SpA (ADR) (NYSE: E) is willing to sell a stake in the Zohr gas field discovery off of Egypt, CEO Claudio Descalzi said.
Egypt used to export gas to Israel and Jordan but the country turned to a gas importer since the 2011 upheaval that toppled former leader Hosni Mubarak and the following few years of political turmoil.
Barclays analyst Tavy Rosner said the sell-off in Israeli energy shares seemed excessive, noting Leviathan’s main aim for Egypt was to supply BG International’s LNG facility there though a sub-sea pipeline, whereas much of the Egyptian gas – initially at least – would likely be for domestic consumption.
The benchmark EGX 30 Index declined 0.4 percent on Tuesday after climbing 2.8 percent on Monday in one of the biggest rallies globally. It didn’t provide a time line for the project in the statement.
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