Eni SPA has started gas production from Guendalina gas field in the Adriatic off northeastern Italy.
Guendalina, on the AC 35 AG concession in 42 m of water 47 km offshore, is producing 20 MMcfd from 22 bcf of proved and probable reserves.
Eni is operator with 80% interest, and Mediterranean Oil & Gas PLC has 20%. ENI notified MOG that the anticipated final project cost is likely to be 7% higher than original estimates.
MOG is selling its gas to the Italian utility Elettrogas SPA under a 1-year contract at an average annual gas price of $11.50/Mcf through Oct. 1, 2012. The contract automatically renews unless terminated by either party.
About the Author
Alan Petzet
Chief Editor Exploration
Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.
Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.
