Representatives of Italian explorer Eni and the Egyptian government gathered in Rome to sign updated Head of Agreement terms, following a new offshore discovery made in the Nile Delta earlier this week.
The update says the two will jointly evaluate the development opportunities of the discovery by renegotiating the terms and contract extension of the concession.
On Tuesday 21 July, Eni announced the discovery of gas at the Nooros exploration prospect in the Abu Madi West license, in the Nile Delta, offshore Egypt. The Nidoco NW2 Dir NFW well, which sits 120km northeast of Alexandria, reached 3600m total depth and encountered a 60m thick gas bearing sandstone interval of Messianian age with excellent petrophysical properties, further of other gas layers in the overlying Pliocene section.
Preliminary estimates show a potential 15 Bcm of gas in place, plus associated condensates. Eni will be focused on a fast track exploitation of this potential to fill up the processing capacity of Abu Madi Gas Plant.
Egypt’s Minister of Petroleum and Mineral Resources Sherif Ismail, Egyptian Prime Minister Ibrahim Mahlab, Italian Prime Minister Matteo Renzi and Eni’s CEO Claudio Descalzi were present at the signing.
“Today’s update further reaffirms and strengthens the commitments undertaken with the Head of Agreement signed last March during the Egyptian Economic Development Conference in Sharm El Sheik, which, following the revision of the contractual parameters and temporary extensions of some concessions, envisages investments of an estimate US$5 billion,” Eni said. “The investment will lead to the realization of projects to be implemented in the next four years and directed to the development of 200 MMbbl of oil and 1.3 TCF of gas. These investments will also contribute effectively to the increasing energy needs of local demand.”
Eni, through its subsidiary Ieoc Production, holds a 75% of working interest in the West Abu Madi development lease, with BP as a partner with 25%. Petrobel, equally owned by Ieoc (50%) and EGPC (50%), is the operator of the concession.
Image: Eni CEO Claudio Descalzi
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