Misr Insurance insures Eni’s supergiant gas find Zohr – Phase I for $4.8 bln

Big 5

Egypt’s Misr Insurance is providing insurance coverage for Italian Eni’s first phase of its giant offshore Zohr gas field project, an official in the Egyptian insurer said Sunday.

The first phase lies 100 kilometres north Port Said, part of Eni’s concession areas. It includes drilling four wells.

Mohamed Sayed Abdel Fattah, General Manager for Oil Department at Misr Insurance, further told Amwal Al Ghad that the insurance policy for Zohr first phase is with total sum insured of $4.8 billion.

The insurance policy involves marine insurance coverage, marine and land constructions, in addition to control of well coverage, and civil liability, Abdel Fattah added.

The operations are being conducted by Petrobel, which is a JV between IEOC and the state partner Egyptian General Petroleum Corporation (EGPC).

Italy’s Eni is focused on starting production at its giant offshore Zohr gas field in Egypt by the end of 2017. The field is expected to produce 2.5-3 billion cubic feet of gas per day when it reaches peak production in 2019.

The second phase will see the addition of 16 wells to production by 2020.

Zohr, discovered by Eni in 2015, has an estimated 30 trillion cubic feet of gas. It is expected to plug Egypt’s acute energy shortages and save it billions of dollars in precious hard currency that would otherwise be spent on imports.