Eni prolongs exploration of Zohr gas field in Egypt for an additional two years

The Zohr gas field in Egypt has faced a notable decline in natural gas production in recent years, prompting Italian oil company Eni to pursue additional exploration activities at the site for an extended period of two years. This decision was communicated by Egyptian Prime Minister Mostafa Madbouly in a public address on February 13.

The Zohr field, initially discovered in 2015 and commenced production in 2017, plays a crucial role in Egypt’s energy sector by contributing 40% to the nation’s overall gas production, which holds a dominant position in the energy mix at 52%. However, production levels at the field have dropped from 2.7 billion cubic feet per day to 1.9 billion cubic feet in the first part of 2024, prompting the need for strategic adjustments in energy supply management.

To offset the diminishing extraction rates at Zohr, Egypt has heightened its imports of liquefied natural gas (LNG). Recent reports from Reuters have indicated that the country has finalized an agreement to obtain 60 LNG cargoes from Shell and TotalEnergies. This move is aimed at maintaining stability in domestic gas demand and securing the necessary supply for industrial and power-related infrastructures.

Although the Zohr field currently boasts sizable reserves estimated at 480 million barrels of oil equivalent as per Eni’s official reports, the future outlook for production remains uncertain and contingent on the outcomes of ongoing exploration phases. The decision to extend prospecting activities at the field signals a proactive approach to identifying new exploitable resources that could not only sustain but also enhance the site’s profitability amidst the competitive landscape of the energy sector.

In conclusion, the efforts to intensify exploration at the Zohr gas field underscore its critical significance in Egypt’s energy landscape and the broader implications for domestic energy security. By prolonging exploration endeavors, Eni aims to unlock the potential for additional reserves that could bolster the field’s operational viability and contribute towards ensuring a stable supply of natural gas for Egypt’s energy needs.