ENI Uncovers Fresh Oil In Egypt's Western Desert - Emerging Market Views

ENI Uncovers Fresh Oil In Egypt’s Western Desert

The new discovery adds 10,000 barrels of oil per day to the current Concession production.

Milan-based multinational oil and gas company Eni this month announced a new oil discovery in Egypt’s Meleiha Concession in the country’s Western Desert. The discovery was achieved through the Arcadia 9 well, drilled on the Arcadia South structure, which is located 1.5km south of the main Arcadia field already in production, according to Eni.

The well encountered 85 feet of oil column in the Cretaceous sandstones of the Alam El Bueib 3G formation. The company says the well has been drilled close to existing production facilities and is already tied-in to production, with a stabilized rate of 5,500 barrels of oil per day.

Since the discovery, two development wells dubbed Arcadia 10 and Arcadia 11, have been drilled back to back. “The first one encountered 25 feet of oil column and the second one 80 feet, within the Alam El Bueib 3G formation,” the company said in a statement. “The three wells [now] share the same oil-water contact in the discovered reservoir. Arcadia 11 also encountered 20 feet of oil pay in the overlying Alam El Bueib 3D formation.”

The new discovery has added 10,000 barrels of oil per day to Eni’s gross production in the Western Desert of Egypt.

The company’s successful implementation of its infrastructure-led exploration strategy in the Western Desert through AGIBA, a joint venture between Eni and Egyptian General Petroleum Corporation (EGPC) will now allow for a quick valorization of these new resources.

Through its subsidiary Ieoc, Eni holds a 38 percent interest in the Meleiha concession. Russia’s Lukoil holds 12 percent and Egypt’s General Petroleum Corporation (EGPC) a 50 percent interest.

The oil giant has been present in Egypt since 1954 where it remains the country’s main producer. Eni says its current equity hydrocarbon production is around 320,000 barrels of oil equivalent per day.