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Eni (E) Records Production Level of 2 Bcfd at the Zohr Field

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Eni SpA (E - Free Report) announced that the Zohr field, which started producing in December 2017, is currently producing 2 billion cubic feet per day (bcfd) or about 365,000 barrels of oil equivalent per day (boed).

Initially, it was estimated that post the completion of the field, daily output of natural gas is likely to touch 2.7 bcfd in 2019. The current production is an impressive feat by the company. The level was attained only a few months after the field came online and a year prior to the schedule of the Plan of Development (PoD).

The above has been possible primarily owing to the commissioning of the fifth production unit, T4, which is supported by eight gas producers and a new 30 inches by 218 kilometer sealine, which was initiated in August.

With huge and potential gas resources estimated at more than 30 trillion cubic feet (tcf) of gas in place, the discovery was considered to be the largest in the Mediterranean area. Located within the offshore Shorouk Block, about 190 kilometer north of Port Said, the Zohr field is one of Eni’s seven record-breaking projects.

Of the contractor’s share in the Shorouk Block, Eni holds a 50% stake, Rosneft holds 30%, BP plc (BP - Free Report) holds 10% and Mubadala Petroleum holds 10%. The project is executed by Petrobel, on behalf of Petroshorouk, jointly held by the contractor (Eni and its partners) and the state company, Egyptian Natural Gas Holding Company (EGAS). Petrobel, the operating company, is jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC).

Eni’s presence in Egypt dates back to 1954. The company, one of the leading producers in the country, operates through its subsidiary IEOC in the region. It has equity of about 340,000 boed.

The project contributes greatly in supporting Egypt’s non-reliance on LNG imports.

Price Performance

In the past year, Eni’s shares have gained 12.1% compared with the industry’s 9.1% rise.


Zacks Rank & Stocks to Consider

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

A few better-ranked players in the same sector are Petroleo Brasileiro S.A. (PBR - Free Report) , or Petrobras SA and TC Pipelines, LP (TCP - Free Report) . Both these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Petrobras is the largest integrated energy firm in Brazil and one of the major players in Latin America. It pulled off an average positive earnings surprise of 10.4% in the last four quarters.

TC Pipelines purchases, owns and actively participates in the management of U.S.-based natural gas pipelines and related assets. The company delivered an average positive earnings surprise of 3.7% in the last four quarters.

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