Eni scooped up three new exploration licenses in Egypt as a result of the 2013 Egyptian General Petroleum Corp. (EGPC) and the Egyptian Natural Gas Holding Co. (EGAS) international licensing bid rounds. Two of the three blocks are located in the deepwater Mediterranean Sea near the boundary of Cypriot’s waters.
Through the EGAS bid rounds, Eni was awarded the operatorship stakes for blocks 8 and 9. It will hold a 100% interest in Block 9 (North Leil Offshore), and will split participation with BP in Block 8 (Karawan Offshore). Block 9 covers 5105sq km and is located in water 2100-2800m deep, while Block 8 covers 4565sq km in water depths ranging from 2000 to 2500m.
The two companies have celebrated recent success in the country. On 21 August, Eni, with partner BP, announced the start of production from the Denise-Karawan (DEKA) project offshore Nile Delta through the new subsea well Denise South 6 at a gas rate of 1.8MMcm/d and approximately 800bbl/d of associated condensates.
Through the EGPC bid round, Eni will gain operatorship and 100% equity in the onshore South-West Melehia block in Egypt’s Western Desert.
A total of 10 blocks were offered in EGAS’ international bid round, which launched on 30 December 2013. Deloitte said that a total of 26,012sq km were offered, with three onshore and five offshore blocks.
Although it is the largest international hydrocarbon operator in Egypt, Eni, working in the country since 1954, has been steadily increasing its already-high presence in the region. Sasol Petroleum International farmed out 40% interest and the operatorship to Eni for exploration right permit 236 off South Africa.
The Italian company said in a statement that it was the new licenses will be formally awarded soon, after the ratification and finalization of the Concession Agreements.
Blocks offered in the EGAS licensing round shaded in blue. Image from Deloitte PetroView.
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