Eni CEO: Egyptian gas discovery for domestic use

Tamar

Claudio Descalzi told La Repubblica his company was not necessarily looking to sell a stake in the Zohr field.

Claudio Descalzi, CEO of Italian energy giant Eni, told Italian newspaper "La Repubblica" today that the gas discovered in Egypt was intended for domestic consumption. The implication is that the contracts for selling gas from Israeli gas reservoirs to British Gas and Union Fenosa for their Egyptian liquefaction plants could still be viable.

Speaking about the possibility of selling a stake in the new gas field, Descalzi said, "It's an open door to give value and solidity to Eni's balance sheet, but it will not be a necessary outcome. There is much less to spend than in Mozambique and the new gas is aimed at the local domestic market with prices disconnected from those of oil." (translation: Reuters).

Eni announced yesterday that it had discovered a huge gas field close to the Egyptian coast, claiming that the field, named Zohr, was the largest in the Mediterranean and could be one of the largest in the world. It is estimated to contain 30 TCF (trillion cubic feet) of natural gas. Israel's largest gas field, Leviathan, is estimated to contain 22 TCF.

On the Tel Aviv Stock Exchange this morning, energy stocks are down sharply: Ratio Oil Exploration (1992) LP (TASE:RATI.L) is off by 13.91%, Delek Group Ltd. (TASE: DLEKG) by 7.7%, and Avner Oil and Gas LP (TASE: AVNR.L) by 6.6%.

Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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