Italian energy giant Eni’s announcement of the discovery of a large offshore natural gas field in the eastern Mediterranean is credited positive for the company and for Egypt, Moody’s Investors Service said in a Friday statement.
For Eni, the discovery will add sizable undeveloped resources and proven reserves whilst also potentially adding to its production base in the medium-term.
For Egypt, the discovery will help alleviate the balance ofpayments pressures. The potential step up in oil and gas sector investments will support GDP growth and government revenues, Moody’s said.
Last week, Eni announced it had discovered the “largest ever” natural gas field in the Mediterranean Sea off Egypt. The “supergiant” well lies 1,450 metres (4,700 feet) beneath the surface in the Shorouk Block, and about 190 km(120 miles) off the Egyptian coast, the company said.
“Low global oil prices and increased domestic gas production will help alleviate the negative pressure on Egypt’s current account balance by reducing the need for natural gas imports and eventually re-establishing the country as a net hydrocarbon exporter,” according to the report.