Eni Chief Meets el-Sisi, as Tensions Ease

Eni said late January 4 that its CEO Claudio Descalzi met the president of Egypt Abdel Fattah el-Sisi, earlier that day in Cairo.

Descalzi reviewed the ongoing development of the giant Zohr gasfield with the president, noting that the ultra-fast track project is progressing as expected, still with “production start-up confirmed by end of 2017.” The Eni CEO also said that the Nooros field will produce some 25mn m³/d (882mn ft³/d, or 172,000 barrels of oil equivalent/day) by the end of this month, just 15 months after start-up.

Eni agreed late 2016 to farm out potentially up to 50% of Zohr to Rosneft and BP. Each has an option for another 5% on top of their 30% and 10% holdings respectively.

The Italian operator said earlier last year that the Zohr field would start up in late 2017 initially at 1bn ft³/d, rising in phases to 2.8bn ft³/d by 2019

Egyptian President Abdel Fattah el-Sisi (Photo credit: government/Twitter)

Relations between Cairo and Eni are more cordial than those between Cairo and the Italian government. Rome withdrew its ambassador from Cairo in April over Egypt’s failure properly to investigate the abduction, torture and murder in early 2016 of Italian researcher Giulio Regeni. 

However ex-foreign minister Paolo Gentiloni, who became Italy’s prime minister on December 12, said later that month -- quoted by Italian news agency Ansa -- that "collaboration between Rome prosecutors and Cairo prosecutors has produced results". Italy will send a new ambassador to Cairo early this month, according to a recent report by newspaper Egyptian Independent.

Italy’s prime minister Paolo Gentiloni (Photo credit: Italian government)

Descalzi and el Sisi also discussed Eni’s exploration in the country, including on two new concession agreements (North El Hammad and the North Ras el Esh blocks) signed on December 27 2016 as a result of the Egas 2015 international bid round.

Eni said it invested $2.7bn in Egypt during 2016. Its equity production is some 230,000 boe/d.

Mark Smedley