Eni SpA E has received two new exploration licences, North El Hammad and North Ras El Esh, located in the Egyptian offshore of the Mediterranean Sea. These blocks were awarded following the competitive 2015 EGAS bid round.
Eni will operate North El Hammad with a participating interest of 37.5%. Other partners in the block are BP plc BP and Total SA TOT holding 37.5% and 25%, respectively. Eni has been awarded an interest of 50% in North Ras El Esh, while the remaining will be held by BP. BP will operate the North Ras El Esh block.
The aforesaid blocks lie in the shallow waters of the Mediterranean Sea facing the Nile Delta and are located southwest of the Temsah area and west of the Baltim area. Both blocks will be managed by a subsidiary of Eni – IEOC. Notably, Eni operates existing fields and production facilities in the area.
The North El Hammad and North Ras El Esh blocks span across acreage of 1,389 and 1,927 square kilometers, respectively.
The latest award further strengthens Eni’s presence in Egypt. Interestingly, Eni was recently awarded the deep water Karawan and North Leil blocks. These contracts bolster Eni’s exploration activities in the region after the vital successes of Nidoco NW and Zohr.
Eni’s presence in Egypt dates back to 1954. The company is one of the most important producers in the country with equity of about 190,000 barrels of oil equivalent per day.
Eni, along with its consolidated subsidiaries, is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. The company’s major business segments are Exploration and Production, Gas and Power, and Refining and Marketing.
The company conducts the majority of its exploration and production activities for hydrocarbons. Eni operates these activities out of 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.
Eni carries a Zacks Rank #3 (Hold). A better-ranked stock from the same space is Natural Gas Services Group Inc. NGS, which sports a Zacks Rank #1 (Strong Buy).
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