Eni will invest no more than 10 billion dollars for the full exploitation of the maxi gas field of Zohr, recently discovered in Egypt. The estimate was presented this morning by CEO Claudio Descalzi during a hearing in the Senate. Above all, however, it was learned that the estimate of a total of 850 billion cubic meters "is conservative" and the field could have further developments as "probably - explained the manager - there is another field under this field, also an important one. Not pure gas, there may be some condensates or oil and we will check it. There are therefore expectations both on the reservoir and on further important underlying reserves”. The title Eni it is the buying center on the Stock Exchange and is growing by 2,3% at 12,50.
“It is very premature to make estimates – Descalzi specified – we are still refining the numbers. I can only say that it is an easy field. The Egyptian energy minister has estimated it at 6/7 billion dollars. It's a reasonable order of magnitude. I think we will stay within 10 billion for the overall development of the field. It's a positive cost”, said the manager answering questions from the senators.
The Egyptian authorities "want to be able to develop this discovery quickly, super-fast, in 2017". Descalzi added that the development plan will be prepared "in the coming weeks", then there will be the concession. Furthermore, the CEO intends to go "in December" to the board of Eni to approve the final investment.
Descalzi, during the hearing, defined the characteristics of the gas in the reservoir as "impressive", in which "neither CO2 nor sulfur was found: it is practically methane and hardly needs to be treated", he added. In addition, there is also “good pressure and low temperature”. Wells can therefore be built “quickly and safely because it is clean and pure gas at a low temperature. Besides, it is important that it is close to our installations. It is practically facing our facilities”. In this area, Descalzi added, Saipem and Italian industry will also have an "important space". Exploitation of the field will be important for Egypt because it will be able to reduce if not eliminate the quota of imported gas and may also have the "direct or indirect" impact of resuming exports, as a hub, particularly in the southern Mediterranean, towards Italy and Spain.
Among the new elements that emerged from the hearing there is also that the exploration of the field is 100% owned by Eni. It's a “rare case” – he specified – to be 100% but, he added, “we tried to have partners. There was an option until the end of July and it was not exercised, fortunately for us and unfortunately for them”. Finally, Zohr's already enormous potential could hold further surprises.
