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Sunday, 18 February 2018

EGAS to hold exploration tender for nine blocks by June

EGAS to hold exploration tender for nine blocks by June: EGAS plans to hold an international exploration tender for nine blocks “before the end of 1H2018,” EGAS Vice Chairman for Agreements and Exploration Ahmed Salah Abdel Wahed said on Thursday, Youm7 reports. The tender includes six offshore and three onshore blocks. Though he did not specify where these blocks will be, the offshore ones are expected to include areas in the Mediterranean as EGAS has put a plan to issue tenders for natural gas exploration annually, with a focus on the Mediterranean. Last week, Oil Minister Tarek El Molla said that the ministry plans to float tenders in the West Mediterranean once seismic mapping of the area is complete and a marketing strategy for the field has been developed. He added that the Red Sea and South Egypt areas will also see tenders — for the first time — once geological data has been collected.

Will the impact of the early launch of the Atoll gas field be minimal? Analysts speaking to chemical industry news firm ICIS appear to think so, adding that LNG imports are likely to continue to the end of the year. “The Atoll field is a reasonably significant addition to the trend of growing domestic gas production in Egypt, but on its own it would only have a limited impact,” said Andy Flower, an independent LNG consultant. BP had announced the launch of the Atoll gas field seven months early last week.

Meanwhile, Eni is doing well—and preparing to reap the rewards of Zohr, as its net profits more than doubled in the fourth quarter to c. EUR 1 bn and production in December reaching an all time high of 1.9 mn boe/d. Production from Zohr is expected to 70,000 boe/d for Eni this year, CEO Claudio Descalzi said in the company’s earnings release (pdf).

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