Continuing to expand its footprint in the Eastern Mediterranean, Italy's Eni has won two exploration blocks in waters near Cyprus this week as a part of a "competitive international bid round", according to media reports.
The announcement relates to the company's acquisition of Block 8 and a 50% stake in Block 6, with the remainder going to project partner, Total SA TOT.
The announcement signals an expanded presence in the region, building on existing stakes in Cyprus and a significant stake in a "super giant" gas discovery in nearby Egypt. According to the report, Eni has already been awarded blocks 2,3 and 9 in a 2012 bid round.
In late 2015, Eni announced an extension of an exploration agreement with Nicosia, alongside South Korean partner KOGAS.
"Eni believes in the significant synergies of joint development in the entire area of the eastern Mediterranean," the company said in a statement, at the time. "This area could be of crucial strategic importance as a gas hub for the whole region and also makes an important contribution to European energy security."
Since then, Eni has sought out new funding options for exploration efforts, including asset sales, as well as new financing agreements with British and Chinese banks. Further, the company recently has narrowed its Eastern Mediterranean presence with the reduction of its stake in the Zohr field. The company announced the sale of 10% of its stake to BP in late November. [TEKMOR Note: which can go up to 15%, as well a 30-35% stake to Rosneft].
Billed as the largest natural gas discovery in the Mediterranean in the last decade, the Zohr offshore field near Egypt has attracted intense interest from companies hoping to make the most out of the region's new-found energy potential. According to earlier reports, the "super giant" field could be home to an estimated 30 trillion cubic feet of natural gas.
Christopher Coats, Contributor
I write about energy and policy issues facing the Mediterranean region
Opinions expressed by Forbes Contributors are their own.
SOURCE
