Eni: Nooros Field Comes Online, Production Gets A Boost

Eni SpA (TO:E) announced that the Nooros field located in Abu Madi West concession has started production. With the field now online, the company’s production reached about 65,000 barrels of oil equivalent per day (about 33,000 net to Eni) in about 10 months after discovery was made in Jul 2015.

The Nooros field has come online soon after the start of production at the Nidoco North 1X exploration well and the Nidoco North West 4 development well. This is a major milestone reached by Eni and emphasizes its near field exploration strategy focused on high-value activities, which facilitates the rapid development of the findings using the existing infrastructures.

Nooros’ daily production comprises of about 10 million cubic meters of gas and 5,000 barrels of condensates. Contribution from the Nooros’ will be immensely helpful in reducing Egypt’s gas imports as well as provide low cost energy for the country’s development.

Going ahead, Eni plans to ramp up production to about 140,000 barrels of oil equivalent (Boe) per day by the end of 2016. The company intends to drill additional wells and optimize facility to achieve its goal. Moreover, Eni plans to progress with its exploration activities within the license area as it identified additional potential in the same.

Eni has a stake of 75% in the concession of Abu Madi West, located in the Nile Delta, through its subsidiary IEOC. The other partner BP plc (NYSE:BP) holds the remaining 25%. Petrobel, which is a joint venture between IEOC and the State partner Egyptian General Petroleum Corporation (“EGPC”), is also conducting operations in the license.

Eni operates in Egypt through IEOC and has had a strong presence in the area since 1954. In 2015, the company’s equity production was about 200 MBoeper day.

Currently, Eni carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the oil and gas sector include CVR Refining, LP (NYSE:CVRR) and Braskem S.A. (NYSE:BAK) . Both these stocks sport a Zacks Rank #1 (Strong Buy).


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