Italy’s Upstream Increasingly Under the International Spotlights
On Tuesday, mixed figures emerged from the operations of junior companies focused on Italy, with Sound Oil abandoning the second appraisal well pending a possible sidetrack at its onshore Nervesa discovery, while Northern Petroleum and Sound Oil received EIA approvals for exploration permit applications in the Bel Paese. All in all, the mood remains positive.
In less than a week, the Italian government approved five EIA for Northern Petroleum’s exploration permit applications in the Southern Adriatic, and also the EIA for the award of the D503-BR-CS permit, covering Sound Oil's Dora and Dalla assets.
"We continue to progress our Italian portfolio which includes a blend of cost covering production, existing discoveries and high upside exploration” James Parsons, Sound Oil's Chief Executive Officer, commented.
On the other hand, the company abandoned the second appraisal well on its Nervesa discovery in northern Italy.
‘Despite the confirmed presence of gas and the completion of reperforation and stimulation operations in the lower section of the target reservoir, the company has been unable to secure a stabilised flow rate. The company has therefore concluded that the lower section of the target reservoir is insufficiently permeable to flow gas’ reads a separate note.
As anticipated, Northern Petroleum reported developments.
"With all the southern Adriatic EIAs approved the Company can now work with the Italian authorities to finalise the award of the permits. Once received, a full 2D seismic programme will be designed to evaluate the potential of the Company's 4,500 sq km of contiguous permits and develop further opportunities similar to the Giove discovery and Cygnus exploration prospect” Keith Bush, Northern Petroleum CEO, explained.
The two companies’ successes indicate that there could be soon a growing interest for exploration in Italy.
“We have now withdrawn from Romania and Kurdistan, and are focusing our future exploration efforts on Egypt and Italy” Brian O’Cathain, CEO of Petroceltic, commented in a press release.
The declarations and the positive comments are in line with a trend of increasing confidence in Italy’s upstream potentials.