Moody’s: Eni gas find to alleviate Egypt’s BoP pressures

Italian energy giant Eni’s discovery of a large offshore natural gas field in the eastern Mediterranean off the Egyptian coast is credited positive for the company and for Egypt, rating agency Moody’s said Friday.

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 of payments pressures. The potential step up in oil and gas sector investments will support GDP growth and government revenues, Moody’s said in a statement.

Last Sunday, 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 kilometres (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.