Exploration and production of natural gas
Hydrocarbons (gas and oil) result from the transformation of organic matter under specific temperature and pressure conditions. They are unevenly distributed across the world, in ancient sedimentary basins. Natural gas has been one of the Group’s core businesses since its formation. It is a fossil fuel whose combustion generates little greenhouse gas. At a time of diminishing natural gas resources (two thirds of them are in Russia and the Middle East), ENGIE is safeguarding its supplies and has made exploration-production a priority for the years to come.
Safeguarding natural gas supplies
To safeguard its supplies, ENGIE has its own hydrocarbon reserves in 14 countries around the world, with a production of 55 million barrels of oil equivalent (Mboe) and proven and probable (2P) hydrocarbon reserves of 758,8 Mboe at the end of 2014.
The objective: to reach a long-term goal of 1,000 Mboe. How? Through acquisitions, certainly, but first and foremost through the discovery of new deposits via exploration activities.
Exploration & and production is a key activity in the Group’s strategic integration throughout the gas value chain.
- To take advantage of its position in Europe to maximize the value of its assets through its extensive knowledge of the area, its strong presence, its exploration portfolio and its costs;
- To support ENGIE in its development in high-growth areas by promoting synergies with other Group entities specifically through integrated projects in LNG or electricity generation;
- To pursue its business in a sustainable development scenario, by consolidating its health, safety and environmental performances, at the same time as affording respect for ethics and helping to reduce CO2 emissions…;
To expand its portfolio of 2P reserves and its production, E&P specifically aims to continue the development of its projects in North Africa, in the Caspian Sea (Azerbaijan) and in Asia, while maintaining its position in areas of current production in Northern Europe.
Exploration and production of natural gas : a key priority
Europe and North Africa are the main cores areas of the Group’s exploration and production business. However for several years, this activity has been developing in other parts of the world, such as the Caspian Sea, Asia or Oceania.
Today, the Group is present in the United Kingdom, in Norway, in the Netherlands, in Germany, in France, in Egypt, in Libya, in Algeria, in Azerbaijan, in Brazil, in Qatar, in Australia, in Indonesia and in Malaysia. ENGIE’s policy for exploration-production aims to increase hydrocarbon reserves in accordance with three priorities:
- The full exploitation of existing fields
- The development of resources already discovered
The Group has a well-balanced portfolio composed of assets in different stages of development (exploration licenses, gas fields and pipelines to transport the gas produced).