Eni extends Zohr gas field exploration in Egypt by two years

Natural gas production at the Zohr field in Egypt has significantly declined over the past few years. In response, Italian operator Eni plans to intensify its exploration and prospecting efforts on this field, extending its studies for an additional two years. This announcement was made by Egyptian Prime Minister Mostafa Madbouly during a televised speech on February 13.

A strategic issue for energy supply

The Zohr field, discovered in 2015 and brought into production in 2017, is a key infrastructure for Egypt’s energy industry. It accounts for 40% of the country’s national gas production, which dominates the energy mix at 52%. However, site production has declined from 2.7 billion cubic feet per day to 1.9 billion cubic feet in the first half of 2024. This decrease has led to adjustments in energy supply management.

Increased imports to compensate for production decline

In response to the decreasing extraction volumes at Zohr, Egypt has ramped up its imports of liquefied natural gas (LNG). Last week, Reuters reported that the country had finalized a new agreement to acquire 60 LNG cargoes from Shell and TotalEnergies. This measure aims to stabilize domestic demand and secure the supply for industrial and power infrastructure.

Significant reserves but an uncertain future

According to Eni’s official data, the Zohr field currently holds estimated reserves of 480 million barrels of oil equivalent. However, future production will depend on the results of the new exploration phases. The announced extension of prospecting work could help identify new exploitable volumes and prolong the site’s profitability in an energy market under pressure.