By Menna Samir
Italian energy giant Eni witnessed an increase in its share value of 2.46% on the Italian stock exchange, after posting comments by the company’s CEO, Claudio Descalzi, concerning the recently discovered natural gas field in the Mediterranean Sea off Egypt.
The value per share reached €15.2 after Descalzi announced that he expected investments worth 6bn to $10bn for the development of the field.
In late August of this year, Eni announced the discovery of “Zohr” the “largest ever” natural gas field in the Mediterranean Sea off Egypt.
The company said that the giant well lies 1,450 meters (4,700 feet) beneath the surface in the Shorouk Block, and about 190 km (120 miles) off the Egyptian coast.
Eni added that “Zohr” is the largest gas discovery ever found in Egypt, as well as in the Mediterranean Sea, and could become one of the world’s largest natural gas finds, “The discovery, after its full development, will be able to ensure Egypt’s natural gas demands are satisfied for decades”,
Earlier in September, days after the discovery, international rating agency Moody’s credited the discovery as positive for the company, and for Egypt.
For Eni, the discovery will add sizable undeveloped resources and proven reserves, while potentially adding to its production base in the medium-term.
For Egypt, the discovery will help alleviate its balance of payments pressures. Also, the potential increase in oil and gas sector investments will support GDP growth and government revenues, Moody’s said.
Last week, Chairman of EGAS Khaled Abdel Badie told Daily News Egypt that Eni will finalize the development plan of the newly discovered field in three years, and that the company has already dug one excavation well in the target area.