Eni, ExxonMobil plan $300mn investments in Egypt’s Nour block, Western Zohr concession

Italian energy major Eni (ENI: BIT) is set to begin drilling a second gas well at the Nour offshore concession in the eastern Mediterranean in February, with an estimated investment of $150mn, according to a government official cited by Asharq Business on December 10. 

Egypt’s state gas company EGAS has agreed with Eni to redirect its drilling rig (currently operating at an exploratory well in the Denis offshore area) to the Nour concession next month.

Studies indicate that the Nour-1 well holds potential reserves of around 0.5 trillion cubic feet of natural gas, and drilling the second well could confirm larger commercial volumes.

Asharq Business also reported that ExxonMobil (XOM: NYSE) plans to inject $150mn in new investments to drill an exploratory well in the Western Zohr concession in the Mediterranean. This follows the US company’s signing of a letter of intent with EGAS at the ADIPEC 2025 conference in Abu Dhabi in November to expand exploration activities.

A government official said ExxonMobil has requested that EGAS apply the R-Factor production-sharing model to the concession. EGAS is currently evaluating the proposal, as the company believes the deepwater and high-cost nature of the area requires additional investment incentives to ensure economic viability.

The R-Factor system, recently adopted by the Egyptian government in several petroleum agreements, is designed to attract global energy companies to explore in the western Mediterranean and southern regions. The model allows companies to recover costs and secure reasonable returns, while the state’s share of revenue increases as project profitability rises.