IMF: Egypt’s gas discovery will support Egyptian Economy in the medium term

The Eni discovery of a major deposit of natural gas off the Egyptian coast should help ensure positive economic growth and stimulate the Egyptian economy in the medium term.

Italian Oil Company Eni declared some weeks ago the Mediterranean’s biggest-ever and the world’s 20th largest gas discovery offshore Egypt, in the Zohr field located in the Shorouk Block on the country’s offshore boundary in the Deepwater of the Mediterranean and very near to Cyprus’ Block 12 containing the Aphrodite discovery and Isreal’s Leviathan discovery.

ENI sources said that the discovery which covers an area of about 100 sq km could hold a potential of 30 TCF of lean gas in place (5.5 billion boe in place). The company will start appraise the field with the aim of accelerating a fast track development of the discovery that will best utilize existing offshore and onshore infrastructures.

Egypt is the largest oil and gas producer in Africa though not a member of the Organization of Petroleum Exporting Countries. It’s also the largest oil and gas consumer in the region, leaving it struggling to support domestic demand.

Eni said the gas discovery off the Egyptian coast and recent cooperation with Cyprus could support the European energy security.

About the new discovery, ENI’s CEO, Claudio Descalzi, said: “It’s a very important event for ENI and its people. This outstanding result confirms our expertise and our technological innovation capacity with immediate operational application, and above all shows the strength of the cooperation spirit amongst all the company’s units which are at the foundation of our great successes. Our exploration strategy allows us to persist in the mature areas of countries which we have known for decades and has proved to be winning; reconfirming that Egypt has still great potential”.