Italian explorer EniSpA (E) has further strengthened its Egyptian presence after signing new concession agreements permitting it to explore two more blocks namely the North Leil and Karawan in offshore Egypt.
Eni, the operator, holds 100% interest in North Leil and 50% stake in Karawan. The remaining 50% of Karawan is held by BP plc (BP). Both the blocks will be operated by Eni’s subsidiary IEOC. The blocks are located off the shores of the deepwater Mediterranean, west of the Shorouk block, and were acquired by Eni in 2014.North Leil and Karawan blocks are spread across 5,105 and 4,565 square kilometers of acreage, respectively.
The license for these two new exploration blocks in the Egyptian Mediterranean follows the recently awarded South-West Melehia block in the Western Desert of Egypt.
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) and Spectra Energy Partners, LP (SEP). Both stocks sport a Zacks Rank #1 (Strong Buy).
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