Egypt – The Chief Financial Officer of the Italian company Eni, Francesco Gatti, revealed the company’s intention to carry out work in the Zohr field in Egyptian waters, at the beginning of 2025, to restore the previous level of natural gas production.
Gatti said, in a press statement, that the macroeconomic situation in Egypt is improving, and this means that international oil companies are expanding their activity in this vital sector.
The Zohr field in Egyptian waters is a joint project between Eni, BP, Russia’s Rosneft, and the UAE’s Mubadala Energy, in addition to the Egyptian Natural Gas Holding Company (EGAS).
The Egyptian government attributed the decline in gas field production – which forced it to resort to importing liquefied gas for the first time in years – to the delay in paying the bill of the foreign partner in the gas fields.
Egyptian Prime Minister Mostafa Madbouly said last September that “the matter is related to the return of the foreign partner to invest,” expecting Egypt to return to its usual production rates before the end of next June.
Madbouly denied reports that cast doubt on Egypt’s ability to produce gas, and what some circulated about the existence of problems in the production of the Zohr field and that it was beginning to dry up, adding: “We confirm that the production of the Egyptian fields will gradually return to its levels before the summer period, which will reduce the import bill.”
A few days ago, Eni confirmed that three rigs for the “Agiba” Petroleum Company would start operating in the second week of this month, with the aim of returning production rates in the Zohr field to their levels.
Egyptian Minister of Petroleum Karim Badawy stated that the Zohr natural gas field in the Mediterranean Sea will witness new well drilling works through the Italian company Eni during the coming period, which will contribute to developing gas reserves and exploiting opportunities to increase gas production rates again from the field, which is of great importance in Egypt and the region. Mediterranean Sea.
Badawi said, in a press conference the day before yesterday, that Eni will resume drilling work in the Zohr field, with the driller arriving at the field during next December, to drill two wells with the aim of returning to the production plan before the drilling work stopped. By introducing new production of up to 220 million cubic feet per day.
He noted the entry of excavators into the onshore concession area of “Agiba” Company. To begin drilling work, with 3 rigs entering to drill new wells and 2 rigs to repair the wells.
The rapid decline in gas production and the unusually hot summer in Egypt prompted the government to increase its gas imports this year to the highest level since 2018, and the government sought to import quantities sufficient for the country’s needs and cover electricity production, after months of daily power cuts.
Source: RT + Egyptian media
#Egypt. #Eni #intends #carry #work #Zohr #field #restore #gas #production #levels
Interview with Francesco Gatti, CFO of Eni
Editor: Thank you for joining us today, Mr. Gatti. Let’s start with the recent announcement regarding Eni’s plans to work in the Zohr field. Can you elaborate on what specific actions Eni intends to take in early 2025 to restore production levels?
Francesco Gatti: Thank you for having me. Our intention is to enhance the production capabilities of the Zohr field through investment in modern technologies and methods. We plan to evaluate current infrastructure and identify opportunities for optimization, which will help us restore the field’s production to previous levels.
Editor: You mentioned that the macroeconomic situation in Egypt is improving. How does this impact Eni’s operations and partnership in Egypt, especially concerning the Zohr project?
Francesco Gatti: The improving macroeconomic climate is encouraging for both local and international investors. It creates a more favorable regulatory and financial environment for partnerships like ours. As the economy stabilizes, we expect to see increased collaboration and support from the Egyptian government, which is crucial for the success of our ventures in the oil and gas sector.
Editor: The Egyptian government has attributed the recent decline in gas production to payment delays to foreign partners. Can you comment on how Eni plans to manage financial relationships going forward to avoid these issues?
Francesco Gatti: Open communication and transparency are key. We are committed to working closely with the Egyptian Natural Gas Holding Company and other stakeholders to ensure timely payments and clear financial frameworks. This collaborative approach will help mitigate risks and foster a productive environment for all parties involved.
Editor: Prime Minister Madbouly has expressed confidence in restoring production rates by mid-2024. What measures does Eni foresee implementing to support this timeline?
Francesco Gatti: We are aligning our operational strategies with the Egyptian government’s objectives. By prioritizing efficiency and technological advancements, we aim to contribute to reaching those production targets. Our teams are already on the ground conducting assessments and preparing for the upcoming projects.
Editor: what message would you like to convey to the international community regarding Eni’s commitment to the Zohr field and Egypt’s energy sector?
Francesco Gatti: I want to assure our partners and investors that Eni remains fully committed to the Zohr project and to Egypt as a strategic energy hub. We believe in the potential of this region and are dedicated to ensuring sustainable production that benefits both Egypt and the wider market. Together, we can harness the resources responsibly and effectively.
Editor: Thank you, Mr. Gatti, for sharing your insights and plans for Eni in Egypt. We look forward to seeing how your initiatives unfold in the coming years.
Interview with Francesco Gatti, CFO of Eni
Editor: Thank you for joining us today, Mr. Gatti. Let’s start with the recent announcement regarding Eni’s plans to work in the Zohr field. Can you elaborate on what specific actions Eni intends to take in early 2025 to restore production levels?
Francesco Gatti: Thank you for having me. Our intention is to enhance the production capabilities of the Zohr field through investment in modern technologies and methods. In early 2025, we will assess the current infrastructure to identify optimization opportunities, allowing us to restore the field’s production to its previous levels promptly.
Editor: You mentioned that the macroeconomic situation in Egypt is improving. How does this impact Eni’s operations and partnership in Egypt, especially concerning the Zohr project?
Francesco Gatti: The improving macroeconomic climate is encouraging for both local and international investors. A more favorable regulatory and financial environment enables us to strengthen our partnerships. As the economy stabilizes, we anticipate greater collaboration and support from the Egyptian government, which is essential for the success of our ventures in the oil and gas sector.
Editor: The Egyptian government has attributed the recent decline in gas production to payment delays to foreign partners. Can you comment on how Eni plans to manage financial relationships going forward to avoid these issues?
Francesco Gatti: Open communication and transparency are key. We are committed to working closely with the Egyptian Natural Gas Holding Company and other stakeholders to ensure timely payments and develop clear financial frameworks. By fostering this collaborative approach, we aim to mitigate risks and enhance our operational efficiency, ensuring the successful continuation of the Zohr project.
Editor: There are reports of plans to drill new wells at the Zohr field. How significant do you consider this move in terms of boosting production levels?
Francesco Gatti: Drilling new wells is a critical step in our strategy. It will not only help us tap into additional reserves but also enable us to develop the field’s full potential. We expect these new wells will contribute significantly to lifting production rates, aiming to return to our desired output of up to 220 million cubic feet per day.
Editor: Lastly, with the increasing gas imports and recent challenges faced in the sector, how do you see the future of gas production in Egypt?
Francesco Gatti: Despite the challenges, I remain optimistic about the future of gas production in Egypt. The government’s commitment to revitalizing the sector, along with our strategic initiatives at the Zohr field, will help us overcome current obstacles. We believe that with continued investment and cooperation, we can meet Egypt’s gas demands and support its energy transition effectively. Thank you for the opportunity to discuss this with you.
