Eni Inks Agreement to Operate in Egypt’s Western Desert

Italian explorer EniSpA (E) has signed a new Concession Agreement to operate in a license area in Egypt's Western Desert.

The license in the South-West Melehia block in the Western Desert of Egypt follows the Egyptian General Petroleum Corporation (“EGPC”) 2013 international competitive bid round.

Eni operates the South-West Melehia, through its subsidiary IEOC, which holds a 100% stake. Located just south of Melehia license, the block spreads across 2,058 square kilometers. Agiba, a joint venture of IEOC and EGPC, operates the Melehia license besides managing Eni’s operations in the Western Desert.

Egypt has a strategic importance in Eni’s portfolio, with the company’s presence in the region dating back to 1954. The latest acquisition further enhances its portfolio and adds to the list of exploration successes in the area over the last two years. Eni has an equity production of around 210,000 barrels of oil equivalent per day and is the primary producer of oil in the country.

Eni with its consolidated subsidiaries is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments include Exploration and Production (“E&P”), Gas and Power, and Refining and Marketing. The company conducts its major exploration and production activities for hydrocarbons.

Eni operates in Italy, Croatia, North Africa, West Africa, the North Sea, the Gulf of Mexico, the Middle and Far East, the Caspian Sea, Australia and Latin America. Other segments include Chemicals, Services & Engineering, Other & Corporate, and Corporate & Financials. Additionally, Eni is involved in offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies.

Currently, Eni carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks from the same industry include Enbridge Energy Management LLC (EEQ), Seadrill Partners LLC (SDLP) and QEP Midstream Partners, LP (QEPM), all of which sport a Zacks Rank #1 (Strong Buy).

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