Egypt has signed a $2bn offshore oil exploration deal with Italian oil and gas company Eni.
The new agreement signed by the company with the Egyptian General Petroleum Corporation (EGPC) is aimed at modifying previous oil agreements between both parties and activate the work programmes.
The activities include modifying the gas price in some agreements and extending work in others.
EGPC executive chairman Tareq Al-Mulla and Eni’s exploration activities head Antonio Villa signed the agreement, which includes the implementation of exploration and development activities at Belayim concession areas.
The areas include Sinai, Abu Madi at Nile Delta, Ashrafi at Gulf of Suez, North Port Said in the Mediterranean and Baltim at offshore Nile Delta.
Both parties will also spend $360m on additional activities such as the drilling of five wells in north Port Said.
In the Baltim field, one well will be reconstructed and the other would be drilled with an investment of $80m.
Another $40m will be spent in Gulf of Suez’s Asharfi field.
Signed by Eni and its partners the deal stipulates providing unrecoverable signature bonuses totalling $10m, in addition to around $505m in recoverable signature bonuses for five years.
Image: EGPC executive chairman Tareq Al-Mulla and Eni’s exploration activities head Antonio Villa signing agreement. Photo: courtesy of Ministry of Petroleum.