Eni Operations in Egypt

From Oil4All
Jump to: navigation, search

Historical overview

Eni started operating in Egypt in 1955 when it acquired shares in the International Egyptian Oil Company (IEOC), over which Eni gained full ownership in 1961. In the same year, Eni discovered Egypt's first offshore field, Balayim Marine, which remains the country's largest oil reserve. In 1967 the company discovered Egypt's first natural gas field, Abu Madi.[1]

In 2001, Eni inaugurated the Intersinai Gas Pipeline, which transports gas from the Petrobel fields in the Nile delta through the Sinai peninsula to its destination in Jordan. In 2004, the Damietta LNG plant started operations. The plant was constructed and operated by SEGAS, in which Eni holds a 40 percent share. The plant processes gas from the Nile Delta fields into liquefied natural gas (LNG), which is shipped mainly to Spain.[2]

Current operations

Eni is the largest foreign hydrocarbon operator in Egypt, producing 236,000 barrels of oil equivalent per day in 2011, including 91,000 barrels per day (bpd) of crude and condensates and 22.7 million cubic metres per day of natural gas, totaling 15 percent of annual hydrocarbon production in the country. Eni’s operations are concentrated in a total developed and non-developed area of 15,836 square kilometers (with Eni’s share amounting to 5,898 square kilometers).[3]

Eni operates in Egypt through its fully-owned subsidiary International Egyptian Oil Company. IEOC performs exploration directly and coordinates development and production operations through operating companies that are jointly set up with the Egyptian General Petroleum Corporation (EGPC).[4]

Areas of upstream operation

Eni’s main production operations are located in the Gulf of Suez, mainly in the Belayim field (of which Eni owns 100 percent), and in the Western Desert, in the Melehia (in which Eni holds a 56 percent share) and Ras Qattara (Eni holds 75 percent) concessions where oil and condensates are produced. Eni is also active in concessions in the Nile Delta at North Port Said (100 percent Eni), El Temsah (50 percent Eni, of which it is also the operator), Baltim (50 percent Eni as operator) and Ras el Barr (50 percent Eni), which produce mainly gas. In 2011, production from these concessions represented 91% of Eni’s total share of production in Egypt.[5]

References

  1. "Eni in Egypt", Eni homepage, June 2006.
  2. "Eni in Egypt", Eni homepage, June 2006.
  3. "Exploration & Production", Eni website, retrived 8 May 2013.
  4. "Eni in Egypt", Eni homepage, June 2006.
  5. "Exploration & Production", Eni website, retrived 8 May 2013.