(MEBG) - ENI's presence in Egypt began in 1954 in the Gulf of Suez. Today, he company is the second largest foreign oil company active in the country, and the largest natural gas operator. In 1999 ENI produced 31 percent of Egypt’s oil and 43 percent of its gas.
ENI imaintains its presence through the International Egyptian Oil Company (IEOC). ENIChem, Saipem and Tecnomare have representative offices in Cairo.
Oil & Gas Production and Exploration
ENI produces some 157,000 bpd in Egypt, but is expected to reach 190,000 bpd by 2003.
In 1997, exploration activities were conducted primarily in the Nile Delta area, which has proven to be one of the most important gas basins in the Mediterranean. ENI also discovered new reservoirs in the Belayim concession (Red Sea- Gulf of Suze) at levels deeper than those presently in production. It’s main natural gas field lays in the El-Qar’a fields and the adjoining offshore fields in the Nile Delta.
In 1999 ENI signed agreement foe the sell of natural gas from Port Fouad concession(formerly Port Said) , providing for the sale of 14 million cubic meters of natural gas daily, starting from 2003.
In 1998 ENI signed an agreement to sell 4 million of cubic metrs a day of natural gas for local consumption. The company agreed also to take part in a project run by Egyptian General Petroleum to connect offshore gas fields near Port Said to El-Arish, with a 170 km pipeline. In Sinai it also ha a production sharing agreement in the Bardawil exploration permit.
The company also spend $60 million, which respectively acquired it 100 percent and 75 percent in the Ashrafi and Nidoco concessions, where it is already an operator.
Natural Gas Project
The gas project provides for the development of numerous gas fields recently discovered in four concessions located offshore of the Nile Delta, in waters from 20 to 80 meters deep. Four gas fields (Waker, Darfeel, Baltim South and Port Fouad) produce an average of about 3.4 million cubic meters per day, of which 1.9 million represents ENI's share.
The construction of a gas transmission network linking Port Said with an industrial development area in the North East of the Sinai Peninsula is under way and the possibility of gas exports is being considered.
ENI through its subsidery Agip has been mentioned as a possibly main supplier of natural gas to Israel. The project is handled by Israel’s Ministry of Energy and a private company, Merhav, owned by Yossi Maiman. However, largely as a result of political uncertainty, and also major natural gas discoveries in Israeli territorial waters, the project has been put aside for the time being.
Engineering & Oilfield Services
In the engineering and oilfield services sectors, Saipem and Snamprogetti participated in the consortium for the construction of the Suez Gulf-Mediterranean Crude Oil Pipeline System (SUMED).
In addition, Snamprogetti carried out several NGL recovery units, platforms for offshore oil production projects, the Amerya LAB plant. The company also provided engineering services for several land-based and submrine pipelines.
Recently Snamprogetti signed a contract with Misr Oil Processing Co. (MOPCO) for the engineering, procurement and construction of a hydrocracking complex that will be built at the existing Suez Refinery. It will about 54,000 barrels per stream day (BPSD) of straight run residue.
The main conversion unit is a vacuum gasoil hydrocracker with capacity of 35,000 BPSD. The project includes also major process units as well as utilities and offsite facilities.
© 2000 Mena Report (www.menareport.com)
