Eni has signed a framework agreement with the Egyptian Government to invest approximately $5bn in the development of the country’s oil and gas resources over the next four years
The investments will be used to develop 200 million barrels of oil and 1.3 trillion cubic feet (tcf) of gas.
The agreement will see the application of a new gas price, and extension of several permits to Eni’s projects in the Gulf of Suez, the Western desert, and the Mediterranean offshore.
Eni, which started Egyptian operations in 1954, currently produces around 210,000 barrels of oil equivalent per day.
Earlier in 2015, Eni signed concession agreements to explore two new blocks offshore Egypt.
The blocks, North Leil and Karawan, are located in the deepwater Egyptian Mediterranean, west of the Shorouk block, which Eni acquired in 2014.
Eni subsidiary IEOC will operate the North Leil and Karawan blocks, which cover areas of 5,105km² and 4,565km² respectively.
Egypt has recently paid $2.1bn of debt to foreign energy firms interested in identifying the country’s reserve potential.
The country has delayed payments to companies as a result of the damge to its economy caused by the years of instability since the end of Hosni Mubarak’s rule in 2011.
Image: Eni and Egypt officials sign framework agreement. Photo: courtesy of Eni.