It has been an inauspicious start to 2020 for Italy’s Eni in Egypt. Gas output from its flagship 21.5tcf Zohr field averaged just 2.02bn cfd for Q1, the lowest quarterly figure since 4Q 2018 when the field was ramping up. Output has been further cut to 1.5bn cfd since April as Cairo shuts in output to deal with suppressed domestic gas demand (MEES, 10 April), while a deal to restart the 5mn t/y Segas LNG export terminal at Damietta also fell through last month (MEES, 1 May).
Eni’s net Egypt gas output hit an annual record 1.509bn cfd for 2019 as Zohr ramped up. With oil output steady at 75,000 b/d, total production was 354,000 boe/d, also a record. But these gains were reversed for Q1 with gas output of 1.217bn cfd the lowest figure since 2Q 2018 and down over 360mn cfd from 3Q 2018 (MEES, 24 April). Add in Q1 net oil output of 74,000 b/d – mostly from the company’s Agiba Western Desert JV with EGPC – and Eni’s total ‘oil equivalent’ Egypt output was just 299,000 boe/d, effectively giving up all of 2019’s gains (see charts 1 & 2). (CONTINUED - 905 WORDS)