Italian oil company Eni on Thursday inked several agreements with the Egyptian government regarding the oil and gas concessions it operates in the country.
Eni says that the agreements will lead to investment for more than $2 billion for the realization of projects to be implemented in the next 4 years and will contribute effectively to the increasing energy needs of Egyptian local demand.
According to a statement by Eni, three amendments were signed for the company’s concessions in Egypt of “Sinai 12 and Abu Madi”, “North Port Said” and “Baltim”, which is in partnership with BP, and signed one new Concession Agreement, “Ashrafi”, in partnership with Engie.
Furthermore, Eni says, the agreements represent the positive conclusion of a first set of agreements that were defined in the Heads of Agreement (HoA) signed during the Egypt Economic Development Conference in Sharm El Sheikh last March.
Other three agreements included in the HoA have been already finalized whereas the approval process is expected to be completed before the year-end. Some of the activities envisaged are currently in the execution phase and one additional well in Baltim Concession is already in production, Eni said.
Eni runs its Egypt operations through its subsidiary IEOC. The company recently got in the media spotlight after it discovered a huge gas discovery in the Mediterranean Sea, offshore Egypt. The discovery at the Zohr prospect could prove to be the largest gas discovery ever in the Mediterranean.