Italy-Based Energy Group Eni Finds 'Largest-Ever' Discovered Natural Gas Field in the Mediterranean Sea

Italy's multinational oil and gas company Eni S.p.A. announced on Sunday that it has discovered a 1,450-meter deep and 100-square meter wide field of natural gas in the Mediterranean Sea, off the coast of Egypt. Hence, the energy group - considered Africa's largest energy firm - has full rights and privileges to the discovered gas field.

Producing an equivalent of 200,000 barrels of oil as its daily equity production, Eni has been the leading hydrocarbon producer in Egypt since 1954 through its subsidiary IEOC.

According to a BBC News report on Aug. 30, the company says the area can hold up to 30 trillion ft3 of gas, which is also equivalent to 5.5 billion barrels of oil.

It has signed a deal with Egypt's oil ministry to perform an energy exploration worth $2 billion, allowing its team to explore the Gulf of Suez, Mediterranean, Sinai and some areas in the Nile Delta.

CEO of Eni, Claudio Descalzi, and Egypt President Abdel-Fattah el-Sissi have met in Cairo and then announced news of the discovery the next day.

"Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world's largest natural gas finds," says Eni.

"The discovery, after its full development, will be able to ensure satisfying Egypt's natural gas demand for decades."

"Eni will immediately appraise the field with the aim of accelerating a fast-track development of the discovery," the energy company adds.

Decalzi acknowledges that finding the gas field reaffirms that "Egypt still has great potential" in terms of energy.

"Important synergies with the existing infrastructures can be exploited, allowing us a fast production startup," he adds.

The government of Egypt has not yet determined the monetary value of the discovered natural gas field, but the petroleum ministry of Egypt claims it is equivalent to one third of the country's recent gas reserves.

"The Egyptian government is very happy with this find," according to ministry spokesperson Hamdi Abdelaziz, noting that the gas extracted from the field will be solely for local consumption. "We hope to become self-sufficient by 2020," he says.