This energy company just found the ‘largest-ever’ gas field in the …

1 Sep 2015 | Author: | No comments yet »

Eni finds biggest gas field in Mediterranean off Egypt.

Eni SpA, an Italian energy company, announced in a press release on Sunday that it has discovered a “supergiant” natural gas field. The “largest ever” offshore pure fuel area within the Mediterranean has been found inside Egypt’s territorial waters, in response to the Italian power big Eni. The new “supergiant” offshore field revealed a day earlier by Italy’s Eni SpA and billed as the “largest-ever” found in the Mediterranean Sea could alleviate the Arab world’s most populous nation’s need for gas imports, they said. The invention, introduced by the corporate on Sunday and confirmed by Egypt’s oil ministry, might maintain a possible 850 billion cubic metres of lean fuel in an space of about 100 sq. kilometres. The deep-water deposit in the Zohr Prospect in the Shorouk block might hold 849 cubic meters of gas, equivalent to 5.5 billion barrels of oil, Eni said in an e-mailed statement on Sunday.

This discovery, which the company dubs “historic,” could potentially hold 30 trillion cubic feet of gas within a 100 square kilometer area, making it one of the world’s largest natural gas finds. The latest discovery represents about half of Egypt’s current gas needs, and will cut its trade deficit and help bring in tax revenue when it comes online in some five years, said Angus Blair of investment advisory firm Signet. “It’s a very useful positive economic factor in Egypt,” he said. “Obviously it will help President (Abdel-Fattah) el-Sissi and the government, but to look at it very practically, and economically, it has just come at a very good time.” Egypt is making a gradual economic recovery from the years of chaos since a 2011 uprising toppled longtime autocrat Hosni Mubarak. Rolling power cuts have been a regular feature of life as the country has been ruled by the military, an Islamist president and then a military-backed government. Egypt’s petroleum ministry confirmed the discovery in a separate statement. “Egypt has still great potential,” Eni chief executive officer Claudio Descalzi said in the statement. “This historic discovery” will transform the energy industry in Egypt, he said. Eni’s CEO Claudio Descalzi recently travelled to Egypt to update President Abdel Fattah Al-Sisi on Eni’s discovery and to discuss it with Prime Minister Ibrahim Mahlab and Minister of Petroleum and Mineral Resources Sherif Ismail.

Descalzi stated that finding this gas field in Egypt is strategic for the company, adding value to the discovery because “important synergies with the existing infrastructures can be exploited allowing [Eni] a fast production startup.” Eni stated it’ll “instantly appraise the sector with the goal of accelerating a fast-track improvement of the invention,” giving a timeframe of 4 years.

Last March, authorities signed a $4.6 billion contract with Germany’s Siemens AG to build a new 4.4-gigawatt power plant in southern Egypt and generate 2 gigawatts of wind power. Combined with other agreements signed with Siemens, and the U.S. firm General Electric, Cairo hopes that it could boost its electricity generation capacity by a third. Companions Noble Power and Delek Group, who in recent times found two sizeable fields in Israeli waters, have been negotiating long-term contracts to promote fuel to clients in Egypt, however the offers have been held up by regulatory uncertainty in Israel. Companies including Noble Energy Inc, which are developing gas fields in Israel, have been pushing plans to export the fuel to Egypt since the start of the year.

Descalzi, who became CEO a year ago, met Egyptian President Abdel-Fattah al-Sisi along with the country’s prime minister to discuss the discovery on Saturday in Cairo, according to the Egyptian petroleum ministry statement.

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