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Eni-Operated Zohr Gas Field Progresses With New Well Drilling

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Key Takeaways

  • Eni-operated Zohr gas field development is proceeding with drilling three new wells this financial year.
  • Production from the field had dipped from over 2.5 bcf/d in 2019 to 1.9 bcf/d in early 2024.
  • The Zohr-6 well recently began production, adding 65 million cubic feet per day to Egypt's supply.

Eni S.p.A. (E - Free Report) -operated Zohr gas field in Egypt is progressing with its development through the drilling of three new wells, according to the petroleum ministry of Egypt. The ministry noted that the wells will be drilled in the current financial year and are expected to unlock higher gas production from the field. Zohr is operated by Petrobel, a joint venture between Eni and the state-owned Egyptian General Petroleum Corp.

Eni restarted production at the Zohr gas field in the Mediterranean in February this year. Production at the field was halted for a while due to payment arrears, which were owed to foreign energy firms. The Zohr gas field is the largest offshore gas field discovered in the Mediterranean. E discovered the Zohr field in 2015. The field is estimated to hold about 30 trillion cubic feet of gas.

The production from the Zohr field had declined from its peak level of over 2.5 billion cubic feet per day (bcf/d) in 2019 to 1.9 bcf/d in early 2024. Per the petroleum ministry of Egypt, another well in the field, namely the Zohr-6 well, recently came onstream, contributing an additional 65 million cubic feet per day to the country’s gas output.

E’s Zacks Rank & Key Picks

Currently, E carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Repsol S.A. (REPYY - Free Report) , Antero Midstream Corporation (AM - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

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