Eni announces lease extension of Egypt’s assets, granted new license

enii 14Eni, Africa-focus oil and gas company, has announced a new concession agreement, aimed at governing an offshore exploration license in the prolific East Nile Delta Basin of the Mediterranean Sea, which has received approval by Egyptian authorities

The exploration license, named “Nour,” is located approximately 50km offshore in the Eastern Mediterranean, in water depth ranging from 50-400 meters, and covers a total area of 739 sq km. Eni plans to proceed with the drilling of an exploration well in the second half of 2018.

Nour is operated by Eni through its subsidiary IEOC. In the concession, which is in participation with Egyptian Natural Gas Holding Company (EGAS), Eni holds an 85 per cent stake in partnership with Tharwa Petroleum Company, which holds a 15 per cent stake.

Apart from this, Eni also announced that Egyptian Authorities have authorised a new Nile Delta Concession Agreement allowing a 10-year extension of the Abu Madi West Development Lease (203 sq km), where the Nooros field is located. In addition, the company has also announced the execution of further exploration activities within El Qar’a Exploration Lease (64 sq km). These assets are located in the “Great Nooros Area,” one of the most prolific areas of the Nile Delta, offshore Egypt.

Egyptian Authorities have authorised a five-year extension of the Ras Qattara Concession Agreement and relevant Development Lease. Following this extension, a new drilling campaign in the Zarif and Faras fields will unlock remaining hydrocarbon reserves and allow further exploration activities within the Western Desert basin.

The Great Nooros Area’s asset lease extension strengthens Eni’s gas portfolio while confirming the success of Eni’s strategy of near-field exploration that has revitalised production in the Nile Delta area, where the Nooros field is currently producing 32mn cu/m of gas per day, corresponding to about 215,000 boed. Eni, through its subsidiary IEOC, holds a 75 per cent stake if the Concession in partnership with BP, which has a 25 per cent stake. The operator of “Nile Delta” is Petrobel, a joint venture between IEOC and Egyptian General Petroleum Corporation (EGPC).

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