Eni (E) Secures 2 Out of 4 Blocks in Egypt's Oil & Gas Auction
Eni SpA E, Italy's energy giant, emerged as a prominent winner in Egypt's auction for oil and gas exploration rights, securing concessions for two of the four blocks outright, per the country's petroleum ministry. Additionally, Eni joined forces with BP plc BP and QatarEnergy to secure a third block in the Mediterranean Sea.
According to a report by Reuters, the ministry initiated the process of international bidding for the exploration of 23 available blocks on Monday, including 10 in the Western Desert, two in the Eastern Desert, seven in the Suez Gulf and four in the Red Sea, with a deadline set for Feb 25.
Meanwhile, Russia's Zarubezhneft made a notable entry into the Egyptian market, winning a block in the Nile Delta. This move marks a significant stride for Zarubezhneft, representing a rare expansion abroad by a Russian company since the full-scale invasion of Ukraine in February 2022.
Egypt has been actively positioning itself as a regional energy hub, seeking to leverage its strategic geographical location and vast energy resources. However, the country has faced challenges, including power cuts during the summer and a recent decline in natural gas production to a three-year low.
In July, the government revealed the commencement of a $1.8-billion project, focused on drilling exploration wells for natural gas in the Mediterranean Sea and the Nile Delta.
Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are Range Resources Corporation RRC and Helix Energy Solutions Group, Inc. HLX, both currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Range Resources is among the top 10 natural gas producers in the United States with a diversified asset portfolio spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. RRC has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Helix Energy Solutionsis an international offshore energy company that provides specialty services to the offshore energy industry, with a focus on its growing well intervention and robotic operations. HLX has witnessed an upward earnings estimate revision for 2023 and 2024 over the past 60 days.
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BP p.l.c. (BP) : Free Stock Analysis Report
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