The site targeted for drilling stands in close proximity with the Eni owned Zohr field
With an optimistic sentiment being raised in the global energy market, energy companies are in full swing. From boosting up their exploration, production and investment plans to carry out new expansions, the big oil are doing their all.
Being in the same league, French oil and gas company Total SA (ADR) (NYSE:TOT) is prepping up for gas drilling off Cyprus. The site targeted for drilling stands in close proximity with the Eni SpA (ADR) (NYSE:E) owned Zohr field.
Stephane Michel, President of Total for Middle East and North Africa stated: “Obviously the Zohr discovery has changed the landscape. It is clear that the decision to drill block 11 was taken on the basis of the Zohr discovery.”
Since Block 11 stands close to Zohr, analysts at HIS Markit believe that drilling by Total would be “one of the most critical wells drilled globally in 2017”.
Not only Block 11, but the French energy major also plans to carry out drilling in the onshore Egypt later in 2017 with partnership of 50% with British energy major BP plc (ADR) (NYSE:BP). In addition, TOT even seeks to drill in the Middle East region via discovered resources opportunities with other big oil companies.
Furthermore, TOT won a 30% share of interest in a contract which involves operating Qatar’s biggest offshore crude field. The French company seeks to invest as much as $2 billion in the development of this project.
The drilling projects would considerably help TOT in bolstering its cash flow and balance sheet position that has been severely dented from the economic slowdown in energy prices since the past two years.