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    Loss-Maker Eni Updates on Egypt Drilling



Eni updates its upstream activities in Egypt, including its first appraisal well on giant Zohr discovery

by: Mark Smedley

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Natural Gas & LNG News, Corporate, Exploration & Production, Financials, News By Country, Egypt, Africa

Loss-Maker Eni Updates on Egypt Drilling

Eni has successfully drilled a new well 'Nidoco North 1X' in the Nooros East exploration prospect in the Abu Madi West license, it said February 26.

It is expected to start up by the end of March 2016 and allow the Nooros area, which began production in September 2015 – just two months after the initial Nooros discovery – to reach a production of some 45,000 barrels of oil equivalent/day.

By mid-2016 with new development wells, production capacity will increase to over 60,000 boe/d. Gas and condensates are being sent to the Abu Madi treatment plant, about 25 km from the discovery, and then routed to the Egyptian network.

Eni, through subsidiary IEOC, holds a 75% stake in the concession of Abu Madi West, while BP holds 25%.

The Italian oil company also completed drilling the Zohr 2X well, the first appraisal well on its giant Zohr discovery, in the Shorouk block.

It was drilled in the Shorouk block where Eni, through IEOC, holds a 100% share. It is 1.5 km southeast from Zohr 1X and down-dip of it, on the flank of the Zohr structure, in a water depth of 4,800 ft.

The appraisal plan for Zohr envisages the drilling of three further wells to fully delineate the field which holds a potential of up to 30 trillion ft3 of lean gas (5.5 billion boe) in place. Eni and Egypt recently completed the approvals process for the Zohr field development.

Eni however also on February 26 reported a group-wide net loss of €8.46bn in fourth quarter 2015, and €8.82bn overall in full year 2015.

Special items included net charges of €5.45bn and €5.75bn in the fourth quarter and the full year 2015. The bulk of that comprised impairments due to low oil and gas prices of €4.66bn and €4.82bn respectively -- the most notable impairments having been on assets acquired by Eni during times of higher oil prices (in Algeria, Congo and Turkmenistan) and in areas with high-cost operations (Angola, USA, UK and Norway).