Eni New Gas Field Potentially Worth $2.8b-$3.7b to Co: Santander
2015-08-31 06:32:04.797 GMT
By Francesca Cinelli
(Bloomberg) -- First gas could be produced shortly after
2020 under a fast track development, is likely to be sold first
into domestic gas mkt (though could also support gas exports),
Santander says after Eni finds “super giant” gas field,
offshore Egypt.
* With Eni holding 100% stake, says co. could look to monetize
early (within a 3-4yr timeframe) a sizeable part of this
resource (possibly a 30%-40% stake)
* Calculates a 30%-40% sell-down of Zohr could offload
1.3b-1.8b boe reserves that could be worth $2.8b-$3.7b for
Eni
* This assumes an 80% recovery factor and $2.10/boe unit
NPV based on similar large gas resources in such
countries
* Says Zohr find (some 190km off the coast) could block
broader plans by Egypt to import Israeli gas (positive for
needed support of a fast track development of Zohr)
* Eni is rated hold at Grupo Santander with PT EU18.3
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To contact the reporter on this story:
Francesca Cinelli in Milan at +39-02-80644-252 or
fcinelli@bloomberg.net
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net
2015-08-31 06:32:04.797 GMT
By Francesca Cinelli
(Bloomberg) -- First gas could be produced shortly after
2020 under a fast track development, is likely to be sold first
into domestic gas mkt (though could also support gas exports),
Santander says after Eni finds “super giant” gas field,
offshore Egypt.
* With Eni holding 100% stake, says co. could look to monetize
early (within a 3-4yr timeframe) a sizeable part of this
resource (possibly a 30%-40% stake)
* Calculates a 30%-40% sell-down of Zohr could offload
1.3b-1.8b boe reserves that could be worth $2.8b-$3.7b for
Eni
* This assumes an 80% recovery factor and $2.10/boe unit
NPV based on similar large gas resources in such
countries
* Says Zohr find (some 190km off the coast) could block
broader plans by Egypt to import Israeli gas (positive for
needed support of a fast track development of Zohr)
* Eni is rated hold at Grupo Santander with PT EU18.3
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Francesca Cinelli in Milan at +39-02-80644-252 or
fcinelli@bloomberg.net
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net