Gas discovery spurs Eni further into Egypt

As energy firms face challenges across North Africa, Italy’s Eni continues to find fortune in Egypt. This week saw the energy giant announce that they would be strengthening their commitment to its operations in the country following further discoveries in the Nile Delta. According to a UPI report, Eni updated their operations in the country to reflect a natural gas discovery at their Abu Madi West lisence amounting to at least 530 cubic feet of reserves.

“The update describes the commitment of the parties to jointly evaluate the development opportunities of the discovery by renegotiating the terms and contract extension of the concession,” the Italian company said in a statement, according to UPI. The discovery comes after a $5 billion investment announcement for both oil and gas efforts in Egypt, which followed two new offshore agreements in January of this year.

“These investments will also contribute effectively to the increasing energy needs of local demand,” the company said in a statement. The discovery and renewaed commitment is likely welcome news in Egypt – a country whose energy sector has struggled in recent years. Egypt has a long history of energy challenges, though they have grown especially daunting over the last four years. With the collapse of the long-standing government of Hosni Mubarak, the country of over 80 million found itself economically isolated, which served to reduce its foreign reserves and with it, the ability to keep up payments to oil and gas importers.

At the same time, the country’s domestic production has continued to slow, a situation made worse by a series of attacks on eastbound gas pipelines to buyers in Israel and Jordan, further reducing needed energy sector revenue. To help prepare for further new investment, Cairo has been working to provide the necessary infrastructure. In September of 2014, the country announced plans to dedicate $14.5 billion in petrochemical and refinery investment as a part of an expansive campaign to increase the country’s ability to meet increasing demand.

http://www.forbes.com/sites/christophercoats/2015/07/31/gas-discovery-spurs-eni-further-into-egypt/2/?ss=energy