Zohr gasfield bigger than expected

Italian producer Eni has increased its estimates for the huge and newly discovered Zohr gasfield off Egypt’s Mediterranean coast.

“It’s too early to make estimates, we are still refining the numbers. I can only say that it’s an easy field. The Egyptian energy minister has given an estimate of $6-7 billion, which is a reasonable order of magnitude,” Eni CEO Claudio Descalzi said, speaking before Italy’s senate on Wednesday. He further said the expected investment in the field could reach $10 billion.

Initial estimates for the field were at 2.97 tcm (105 tcf) of recoverable gas reserves, or 5.5 billion barrels of oil equivalent. The field would be relatively simple to develop, as it lies close to existing infrastructure. It is now the largest known gasfield in the Mediterranean Sea.

Cairo has paid $600 million in debt to foreign investors in its oil and gas industry in 2015, and still has $2.9 billion in debt remaining. The Zohr gasfield represents an opportunity for Egypt to reach for economic independence.

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