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Eni Advances Zohr Gas Field Development, Boosts Egypt's Gas Supply

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Key Takeaways

  • E completed Zohr 6 drilling, adding 60M cubic feet/day to Egypt's natural gas production capacity.
  • Zohr 13 is expected to add 55M cubic feet/day as E continues to expand production at the offshore site.
  • E targets 3.2B cubic feet/day by end-2025 and plans two more Zohr wells with a $360M investment in 2026.

Eni S.p.A (E - Free Report) has concluded drilling activities for a well at the Zohr gas field, located off the coast of Egypt. The drilling assignment was carried out by the Saipem 10000 drillship, which is part of Saipem’s rig fleet. Saipem S.p.A. is an Italian engineering, drilling, procurement and construction services provider for the global energy sector.

Saipem 10000 Drillship Supports Drilling Operations

The Saipem 10000 drillship arrived in Egypt on Jan 28, 2025, to drill two additional wells at the Eni-operated Zohr gas field. Following its arrival, drilling activities at the field continued as per the approved development plan, according to Egypt’s Ministry of Petroleum and Mineral Resources. The drillship has wrapped up drilling operations at the Zohr 6 gas field and is moving forward to begin drilling the Zohr 13 well.

Increase in Egypt’s Natural Gas Production

The drilling operations at the Zohr 6 well have contributed an additional 60 million cubic feet of natural gas per day to the current production capacity. The incremental volumes from the Zohr 6 field are expected to support the country’s current natural gas production and help meet national energy requirements. The Ministry of Petroleum and Mineral Resources of Egypt also noted that the growth in natural gas output from the Zohr field aligns with its strategy of increasing local production, which should help maintain a steady supply of energy and petroleum products across various state sectors.

The Zohr 13 well is expected to add approximately 55 million cubic feet of natural gas per day to the field’s production capacity, further supporting Egypt’s natural gas production. The Zohr gas field is a resource-rich, deepwater asset located in the Mediterranean, containing approximately 480 million barrels of oil equivalent.

Eni’s Future Plans

The field was discovered by Eni in 2015. It began operations in 2017 and achieved a record production level of 2.7 billion cubic feet per day in 2019. Eni, an Italian integrated energy firm, intends to reach a production target of 3.2 billion cubic feet per day by the end of 2025. The Italian integrated energy company has stated that it plans to drill two additional wells at the Zohr field next year. The company has also earmarked a $360-million investment for the same.

E’s Zacks Rank & Key Picks

E currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Oceaneering International (OII - Free Report) . Both Flotek Industries and Subsea7 sport a Zacks Rank #1 (Strong Buy) at present, and Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industriesspecializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Subsea 7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction, and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

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