Long a bastion of Mediterranean oil and gas exploration and production, Italy's Edison is close to completing a deal on its latest assets in the UK North Sea and is eyeing its third hub in the wider North Sea region.
Taking time out during this week's Offshore Mediterranean Conference (OMC) in Ravenna, the firm's CEO Bruno Lesceour (pictured) spoke to conference sponsor OE about some of the companies plans.
OE: What are the main opportunities for Edison in the Mediterranean in the next 3-5 years?
"Edison is an Italian based company and we are committed to improve the security of supply of our country and Europe. Italy is actually very well placed and perceived in the region to act as catalyst for the Mediterranean and European needs.
"Nowadays Edison concentrates about 90% of its producing assets in the Mediterranean basin and is recognized as an important player of the industry. We see opportunities in Egypt, that needs energy to feed its growth and that is keen to attract international investors. In Algeria there are also quite a few opportunities and we’re part of them.
"Then there is of course Italy, where we’re based and where we have already put in place a significant investment plan. We’re engaged in exploration activities also in Greece and Israel. Despite the drop in oil prices, we act with a long term perspective and we’re a partner with the countries where we operate. Edison has thus been active during last bidding rounds with the aim to enforce the exploration assets portfolio and to lay foundations for future sustainable production.
"During 2013-2014 we were awarded new explorations licenses in Egypt and Greece, we continue our geological studies in Israel and we started gas production in Croatia. In Italy we’ve completed [together with Eni] the authorization process of an offshore gas project in the Sicily channel and we’re about to complete the process to extend our operated oil offshore activities in Sicily by installing a satellite platform on the Vega field. It is a significant investment plan with a dual focus: optimize and maximize oil production and develop new gas resources."
OE: What international plans does EDISON have in the next 3-5 years?
"Edison intends to strengthen its position in the Mediterranean and to build its third production cluster in North Sea, in addition to Italy and Egypt. Despite the oil price drop, we’re consistent with our long term objective, even if we’re more careful in the short run, acting in a flexible way.
"Edison will continue its exploration and production activity combining organic growth with targeted opportunities in order to optimize its portfolio and consolidate its positioning, but obviously, the speed of growth will depend on hydrocarbons price scenario.
"At the moment we are close to completing the acquisition of a participating interest in Scott and Telford fields in the UK North Sea, adding 3500 boe/d to our current production of 50,000 boe/d and increasing our reserves by 8.7 MMboe. UK assets, together with successful exploration activity in Norway that is entering the development phase, are part of our growth plan in the North Sea."
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