Eni secures two blocks in Egypt’s oil and gas exploration round

Italy’s Eni, represented by ENI.SPA, emerged as the dominant victor in an Egyptian oil and gas exploration rights auction on Tuesday, successfully securing concessions for two out of the four available blocks, as confirmed by the petroleum ministry’s announcement of the auction results.

In addition, the company clinched a third block in the Mediterranean Sea, partnering with BP (BP.L) and QatarEnergy (QATPE.UL). Meanwhile, Russia’s Zarubezhneft was granted a block in the Nile Delta region.

Zarubezhneft’s victory represents an unusual instance of overseas expansion by a Russian firm following Moscow’s comprehensive invasion of Ukraine in February 2022.

Zarubezhneft is currently active in seven nations, including Egypt, where it is involved in production sharing agreements pertaining to offshore blocks.

With a population of 105 million and increasing gas demand, Egypt is actively striving to establish itself as a prominent regional energy hub. The country is not only marketing its own gas but also serving as a conduit for the export of liquefied natural gas (LNG) from Israel to destinations across the Middle East, Africa, and Europe.

Nonetheless, Egypt encountered intermittent power shortages during the summer season, and its natural gas output has declined to its lowest level in three years.

In July, the government unveiled a $1.8 billion initiative to commence drilling natural gas exploration wells in both the Mediterranean Sea and the Nile Delta.

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