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INVESTMENT
EGAS/Eni JV wins

exploration rights to
Northeast El Arish

Egypt’s cabinet has given the preliminary green
light to a joint venture between Egyptian Natu-
ral Gas Holding Co. (EGAS), the national cham-
pion, and supermajor Eni (Italy) for oil and gas
exploration rights for the Northeast El Arish
concession located in the offshore Mediterra-
nean north of the Sinai, Egypt Today reported.
The cabinet’s approval is subject to parlia-
ment legislating the concession granting the
agreement into law and Ministry of Petroleum
licensing procedures.
Egypt is leveraging its natural gas resources to
take maximum advantage of an expected surge
in demand from Europe following EU policy-
makers floating plans to reduce reliance on Rus-
sian supplies.
The government is trying to open up new and UAE’s Mubadala Petroleum 10% of the con- importance of integrating climate and develop-
areas for oil and gas exploration to maintain tractor’s share. ment, as well as the need for an enabling policy
national output levels. Natural gas revenues con- Petrobel, the operating company jointly held and regulatory environment alongside strength-
stitute an important source of foreign exchange by Eni and state-owned Egyptian General Petro- ened institutions in the energy sector,” the state-
income for Egypt providing balance of payments leum Corp. (EGPC), is the official operator of the ment said.
support. field. “[He] affirmed to Vice President Osinbajo the
In April, Eni and EGAS signed a framework The Zohr natural gas field is Egypt’s largest WBG’s readiness to support Nigeria in phasing
agreement allowing Cairo to increase gas pro- and the biggest gas discovery in the Mediterra- out regressive fuel subsidies, while increasing
duction and LNG exports to Europe, in particu- nean, with natural gas production estimated at social assistance for the poor and vulnerable.”
lar to Italy. 706mn barrels of oil equivalent per day (boepd). bna/IntelliNews, September 2 2022
In recent years, Eni has taken part in impor- bna/IntelliNews, August 30 2022
tant oil discoveries in the country, discovering Nigeria’s oil sector
in 2015 the giant Zohr gas field, the biggest ever
found in the Mediterranean, which holds an POLICY contracts for ninth
estimated 30 trillion cubic feet (849.6bn cubic
metres) of gas. World Bank urges consecutive quarter
bna/IntelliNews, August 26 2022
Nigeria to end domestic The Nigerian oil sector recorded negative growth
of -11.8% year on year in Q2-2022, the National
fuel price subsidy This is the ninth quarter in a row that the sec-
PERFORMANCE Bureau of Statistics (NBS) has revealed.
Output at Egypt’s Zohr gas The World Bank is ready to support Nigeria in tor has recorded negative growth, but is less stark
than the previous quarter’s contraction of -26%.
phasing out regressive fuel subsidies, its presi-
field reaches record high dent, David Malpass, has said. Oil had the largest contraction of all sectors in
Nigeria is spending huge sums of money on the second quarter, followed by the gas sector.
of 76.5 mcm per day the fuel subsidy every year, which has taken a sig- in global oil prices as a result of the Rus-
The contraction comes despite growth
nificant toll on the country’s budget. The govern-
Production at Egypt’s Zohr natural gas field in ment has estimated that it will cost the country sian-Ukraine war.
the offshore Mediterranean, operated by Italy’s NGN6.72 trillion ($15.87bn) for the entirety of Nigeria’s oil sector has seen a fall in revenue
Eni, hit a record 2.7bn cubic feet (76.5mn cubic 2023. The Central Bank of Nigeria (CBN) has due to significant growth in oil theft. Accord-
metres) per day of natural gas, in addition to asked the government to “jettison the current ing to Premium Times, quoting official figures,
5,000 barrels of condensates per day in the fiscal fuel subsidy policy” due to the high cost to the Nigeria loses some 400,000 barrels per day (bpd)
year 2021/2022, which ended last June, Egypt Oil economy. of crude to oil theft. This translates to a lost daily
and Gas reported, citing Petroshrouk chairman According to a statement made by Malpass, income of around $40mn.
Khaled Mowafy. Nigeria should increase social assistance for Companies in the oil sector have also seen
The Zohr field is located within the offshore the poor and vulnerable and put a stop to the their share prices be negatively affected by grow-
Shorouk concession. In the Block, Eni holds a subsidies. ing political uncertainty, ahead of the 2023 pres-
50% stake, Russia’s Rosneft 30%, UK’s BP 10% “President Malpass emphasised the idential election.

P16 www. NEWSBASE .com Week 36 08•September•2022