The Italian Eni seeks to link the production of 20 wells in Zohr field to the national gas network over the course of two phases.
The first phase is planned to be completed in mid-2018, and will include four wells. The second phase will take place by 2020 and will include the remaining 16 wells, according to a company statement.
A prominent official at Eni said, in statements to Daily News Egypt, that approximately $5bn will be invested in the execution of the first phase of the Zohr field project in the Shorouk concession area of the deep waters in the Mediterranean.
The total investments of both phases are estimated at approximately $12bn to be spent over the project’s period.
The official added that Eni is currently focused on working in the Shorouk concession area located in the Mediterranean to produce natural gas and link the production to the national gas network as soon as possible.
Eni has completed the drilling of the second well following the discovery of the Zohr field in the deep waters of the Mediterranean. The results show that there is a layer that carries larger amounts of gas, compared to the layer found in the first well. This resulted in creating reserves of approximately 30tr cubic feet of gas.
The discovery of the second well revealed an estimated 20% increase in reserves, meaning that gas production will increase by the end of the development process.
“Eni is concerned that the government will not be able to continue repaying dollar dues to foreign oil companies if the shortage in dollar liquidity continues in the market,” the official said.
He added that Egypt is also considered one of the largest most productive five countries for Eni, even before the discovery of the Zohr gas field. The current decline of oil prices has affected the performance of the company, resulting in slower work rates.
In global market trading on Tuesday, Brent prices reached $39.41 per barrel.