Eni Announces $8.5B Investment Plan to Boost E&P Activities in Egypt
Eni S.p.A E, an Italian multi-energy company, recently met with the president of Egypt, Abdel Fattah el-Sisi, in Cairo to discuss its investment plans and boost exploration and production activities in the country. The company’s CEO, Claudio Descalzi, announced that it intends to spend $8.5 billion in Egypt to expand its upstream business in the region.
Drilling Program to Support Upstream Expansion
Eni’s investment program includes drilling nearly 30 exploration wells to search for new oil and gas resources and around 200 development wells across various concessions in Egypt, including the Zohr gas field.
Denise West Gas Project Moves Toward FID
Eni also mentioned that it is working with BP and the Egyptian Petroleum Corporation (“EGPC”) on the newly discovered Denise West natural gas field. The companies intend to reach a final investment decision (FID) on the field soon, as per a report by Reuters. Furthermore, Eni mentioned that gas production from the discovery may start in less than two years. The Denise West discovery was announced in April this year, and Eni planned to use the existing infrastructure in the region for a fast-track development.
Cronos Gas Project Expands Mediterranean Opportunities
Eni also discussed the development of the Cronos field offshore Cyprus with president Abdel Fattah el-Sisi. The company stated that the Cronos gas development will play an important role in establishing Egypt’s position as an energy hub in the Mediterranean. In fact, the company plans to process gas from the Cronos development at Egypt’s Damietta LNG plant. Eni remains committed to supporting Egypt’s efforts to expand its energy reserves and increase production, contributing to the nation’s energy security goals.
These developments are also positive for Eni’s exploration and production business. Eni has maintained its presence in Egypt since 1954 and intends to reinforce its position as the largest energy company operating in the nation through its investment program. The extensive drilling program and new gas projects in the Mediterranean are expected to strengthen Eni’s upstream portfolio over time.
E’s Zacks Rank & Key Picks
Eni currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Par Pacific Holdings PARR, Valero Energy VLO and Galp Energia SGPS SA GLPEY. While Par Pacific and Valero sport a Zacks Rank #1 (Strong Buy) each, Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
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