By Mohammed Jetutu, in Cairo
The European company is on a ‘gassy’ roll in North Africa’s largest economy
Italian major ENI will be delivering half a billion cubic feet per day in Egypt’s Noras field by mid- 2016.
Noras is located in West Meleiha, onshore Western Desert, and has no relationship with the company’s recent discoveries in onshore West Abu Madi development lease in July 2015 (estimated at 500Bcf) and Zohr, in offshore Mediterranean in August 2015(estimated 30Tcf).
Through a discovery it made in January 2015, the company intends to add about 300Million cubic feet of gas to the daily production from Noras field by the end of 2015, with three wells.
One of the wells will start production later in September, while the second will be activated next December. This will make a total of four wells. First gas commenced in August 2015 in Noras field with one well, which produced 60MMscf/d. Gas production from Noras field is significant in the context of Egypt, which has experienced a steep decline from a peak of 6.1bcf/d in 2009 to 4.7bcf/d in 2014.
A new gas price agreement between ENI and Egypt over the January 2015 Noras discovery is being finalized within the framework of the complete overhaul of domestic gas prices in the country.
The Italian operator owns 76% of the Meleiha concession area through IEOC, Eni’s company in Egypt, while the Russian Lukoil owns 24%.