CAIRO - Italy's eni has discovered gas reserves of up to 15 billion cubic meters in Egypt's Nile Delta region, with production set to start in two months, the Egyptian oil ministry said on Monday.
The discovery was made in Western Abu Madi, 120 km northeast of Alexandria, where eni holds 75 percent of exploration rights through an Egyptian subsidiary, with Britain's BP holding a 25 percent stake.
Preliminary estimates of the discovery account for a potential of 15 Bcm of gas in place with upside, plus associated condensates.
The discovery was made by the Nidoco NW2 Dir NFW well, which reached a total depth of 3,600 m and encountered a 60-m thick gas bearing sandstone interval of Messianian age with excellent petrophysical properties, further of other gas layers in the overlying Pliocene section.
The discovery will be put into production in two months' time through a tie-in to the existing Abu Madi gas treatment plant.
eni made the discovery at a depth of 3,600 meters and initial estimates point towards reserves of up to 15 billion cubic meters of natural gas and natural gas condensate, an Egyptian oil ministry statement quoted the company as saying.
The oil ministry signed a $2 billion energy exploration deal with eni in June.
Egypt raised the prices it pays eni and Edison for the natural gas they produce in the country in July.
The agreements marked an attempt by Egyptian authorities to improve terms for foreign oil and gas businesses in the hope that more competitive pricing will encourage investment in the energy-hungry country.
eni has started operating in Egypt since 1954 with the acquisition of shares of the company ieoc, which became fully owned in 1961. eni has operated in eni has reported a gas discovery in the Nooros exploration prospect, in the Abu Madi West license in the Nile Delta, 120 km northeast of Alexandria, Egypt.
eni, through its subsidiary Ieoc Production BV, holds a 75% of working interest in the West Abu Madi development lease, with BP as a partner with 25%. Petrobel, equally owned by ieoc (50%) and EGPC (50%), is the operator of the concession.
Egypt for more than 60 years through its Egyptian subsidiary ieoc and is one of the main energy producers in the country, with a daily output of around 180 thousand barrels of oil equivalent.
© The Saudi Gazette 2015
