Report: Egypt’s Zohr field to commence production in 2017
Zohr field is expected to start production in 2017 and achieve a peak rate of 2.7 billion cubic feet of gas in 2019, according to a report by GlobalData.
Entitled Egypt Zohr Project Panorama - Oil and Gas Upstream Analysis Report, the report provides details of the development activities at the Zohr field.
Development of the Zohr field, discovered in August 2015, moved swiftly with final investment decision and development authorisation granted in February 2016. Field development activities and construction of onshore gas processing plant began in Q1 2016 and was 35% complete by December 2016.
Field operator Eni signed a farm-in agreement with BP and Rosneft for 10% and 30% equity interest respectively in the field. Eni plans to further decrease its equity interest in the field to 50% indicating the possibility of selling another 10% equity interest.
The farm-in agreements signed with BP and Rosneft include an option to acquire an additional 5% equity interest. These agreements are scheduled for completion in Q2 2017.
The Zohr field will play a key role in reducing gas imports in Egypt and increase foreign exchange inflow into the country through gas exports. Fuel from the field will be initially sold in the domestic market, which had a gas production shortfall of seven billion cubic metres (247 billion cubic feet) as of 2015. Exports from the field will be considered once domestic demand is met.