CAIRO, Aug 25 – Italian oil major Eni is working with BP and the Egyptian General Petroleum Corporation (EGPC) to reach a final investment decision on Egypt’s Denise West offshore gas field within the next few months, as the country seeks to strengthen its domestic gas supply and position as a regional energy hub.
The Italian energy company said on Tuesday that first gas from the field could be produced in less than two years. The discovery was announced in April, adding another potential source of natural gas to Egypt’s offshore portfolio.
Eni Chief Executive Claudio Descalzi discussed the project during a meeting in Cairo with Egyptian President Abdel Fattah el-Sisi. Egypt’s Prime Minister Mostafa Madbouly and Petroleum and Mineral Resources Minister Karim Badawi also attended the meeting.
The planned development comes as Egypt continues to seek additional domestic gas production to support its energy system and strengthen its role in regional gas markets. Reaching a final investment decision would mark an important step towards moving Denise West from discovery to commercial development.
Descalzi and el-Sisi also discussed the progress of Eni’s Cronos gas development project offshore Cyprus, which is expected to further strengthen Egypt’s position as a Mediterranean energy hub.
Under the Cronos development, gas produced offshore Cyprus will be transported to Egypt for processing and liquefaction at the Damietta LNG plant. The project therefore links offshore resources in the eastern Mediterranean with Egypt’s existing gas-processing and liquefaction infrastructure.
For Egypt, the development of Denise West and Cronos could reinforce the country’s role in regional gas flows while supporting the utilisation of its LNG infrastructure. For Eni and its partners, the projects provide additional opportunities to develop eastern Mediterranean gas resources as regional energy markets continue to evolve.
The coming months will be important for Denise West as Eni, BP and EGPC work towards the final investment decision. If approved on schedule, the project could move into development with first gas potentially arriving before the end of the decade.
