Eurasia Press & News
Eni SpA, Italy’s largest oil company, will invest $12 billion to boost its Egyptian natural gas operations over the next five years, Egypt’s oil ministry said Thursday.
Egypt, with proven gas reserves of 58.5 trillion cubic feet, or 1% of world stocks, is a key energy supplier to the Mediterranean rim countries and the Levant.
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Eni also plans to increase its oil reserves in the onshore Belayim field, located in the Gulf of Suez by 180 million barrels over the next 12 years, according to a statement by Egypt’s Ministry of Petroleum.The increase in the field’s reserves will be worth $9 billion of which Egypt’s share would amount to as much as $6 million, according to the statement.The new plans were announced during a meeting between Egypt’s oil minister Sameh Fahmy and Antonio Villa, Eni’s vice president for the Middle East and North Africa to discuss the company’s strategy in Egypt.
San Donato, Milan-based Eni produces more than half a million barrels a day of natural gas, crude oil and condensates in Egypt, according to the Egyptian government statement.
The company operates the Belayim field through a joint venture agreement with the Egyptian General Petroleum Corporation, or EGPC.
Eni also has a joint-venture with EGPC to extract oil from the Western Desert in the Meleiha and West Razzaq blocks in the Qattara depression.
The International Egyptian Oil Company, a subsidiary of Eni, is Egypt’s leading natural gas producer. It operates in the Gulf of Suez, the Nile Delta and the Western Desert. Together with Union Fenosa, Eni is a major shareholder in Egypt’s Damietta Liquified Natural Gas train.