E - UAE's SNOC says Eni on go with Sharjah gas project despite COVID-19 capex cuts

Eni ([[E]] -0.1%) would be moving ahead with a gas project in Sharjah, UAE despite COVID-19 and Eni's capital expenditures and cost cuts, the CEO of state-owned Sharjah National Oil ((SNOC)), told S&P Global Platts.Eni partnered with SNOC in Block B in Sharjah, where it discovered the Mahani reservoir, with the first drilled well achieving flow rates of up to 50 MMcf/d of lean gas and associated condensate.In July, Eni announced capital spending cuts of €2.6B, mainly in its upstream business.SNOC holds 50% and acts as the operator, of the onshore Block B, with Eni holding remaining 50%. Eni operates blocks A and C, with a 75% participating interest, while SNOC has 25% stake.SNOC expects production from the first drilled well in Mahani to commence next year but it is unlikely to be 50 MMcf/d in 2021, SNOC also expects to start drilling a second well next year.

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UAE's SNOC says Eni on go with Sharjah gas project despite COVID-19, capex cuts