It has signed a deal with the Egyptian General Petroleum Corporation (EGPC) and Lukoil, which renamed the combined concessions as Merged Meleiha.
The deal also extended the Merged Meleiha’s concessions to 2036, with possibilities of stretching the time period further to 2041. This is expected to unlock the true potential of the area’s resources.
The company is expected to use high-resolution 3D seismic data for development of the prolific basin of the Egyptian Western Desert.
The company has been working in Egypt since 1954. At present, its daily equity output in the country is estimated at 320 thousand barrels of oil equivalent.
Importantly, Eni intends to use experienced local contractors at the site, who also worked in the Zohr gas field. A joint venture between Eni and EGPC will be the operator at the concession, with a 76% stake. Russian energy company Lukoil owns the remaining 24% interest.
Eni’s constant efforts to expand upstream operations will go a long way in generating growth. The company has recorded massive production growth in the past few years, thanks to ramped-up production from Egypt’s Zohr and Noroos gas fields.
Moreover, the start-up of key upstream projects is expected to enable it to achieve a compound annual growth rate of 4% from 2021 through 2024.
This comes as Eni SPA E is planning to purchase oil and gas assets of BP plc BP in Algeria as part of efforts to realign their businesses to address the burdensome debt plaguing the companies amid climate pressures.
As a result, both companies are considering the transfer of their assets through several options, including an outright sale and the possibility of providing BP an option to pick stakes in Eni’s assets around the world.