Eni has uncovered gas reserves estimated at up to 30 trillion cubic feet in Egypt’s Zohr field, making it the largest gas discovery ever recorded in the country.
Petroleum Ministry spokesman Hamdy Abdel-Aziz said the discovery adds about one-third of Egypt’s total natural gas reserves, which currently stand at roughly 65 trillion cubic feet.
According to Eni, the Zohr well holds around 30 trillion cubic feet of lean gas in place, equal to about 5.5 billion barrels of oil equivalent, and covers an area of nearly 100 square kilometers.
Eni said Zohr is the biggest gas discovery in Egypt and the Mediterranean Sea and could rank among the largest natural gas finds worldwide.
The discovery was made in the Shorouk offshore block, which Egypt awarded to Eni in January 2014 through an international bidding process.
The company said the Zohr well lies within Egypt’s Mediterranean economic waters at a depth of about 4,757 feet, or 1,450 meters.
Abdel-Aziz said gas production from the field should begin within 30 to 36 months.
He added that the government expects Egypt to achieve gas self-sufficiency within five years, supported by the Zohr discovery and other anticipated finds.
Egypt has shifted from being a net gas exporter to a net importer in recent years as domestic consumption rose and production declined.
The country’s energy sector, already under pressure since 2008, suffered further setbacks after the 2011 uprising as debts to foreign oil companies increased and output slowed.
Eni Chief Executive Claudio Descalzi said the discovery means Egypt may not need to import gas for decades.
He said the find secures a long-term energy supply for Egypt and described it as a major resource for the country’s future, adding that the field could hold up to 40 trillion cubic feet of gas and oil.
Eni, which is state-owned, has operated in Egypt through its subsidiary IEOC Production B.V. since 1954 and currently produces about 200,000 barrels of oil equivalent per day.
At Egypt’s economic development conference in March, the company signed agreements with the government worth $5 billion to be invested over four to five years.
In July, Egypt and Eni updated the March agreement following the discovery of gas reserves of up to 15 billion cubic meters in the Nile Delta region.
During the March conference, Egypt secured around $40 billion in energy deals as part of efforts to revive an economy weakened by years of political instability.
source: english.ahram.org.eg
African Energy Council