Eni bags Egypt concession deals

Eni on Tuesday inked concession agreements for two shallow-water blocks in the Egyptian waters of the Mediterranean, the Italian major said in a statement.

The two agreements were a result of the 2015 Egyptian Natural Gas Holding Company bid round, which disappointed some observers by awarding only four licenses for 15 blocks tendered.

Eni will assume operatorship of the 1,927-square-kilometre North El Hammad block on a 37.5% stake. It will be joined by BP and Total, holding 37% and 25%, respectively. Eni also signed an agreement for a 50% participation stake in North Ras El Esh. Covering an area of 1,389 square kilometres, the block is operated by BP.

Combined, the deals, including separate agreements with Total and BP, represent a value of at least USD 220 million, Minister of Petroleum Tarek El Molla said on Wednesday. The BP-Eni package for North Ras El Esh is valued at USD 75 million. The concession agreement for North El Hammad is worth USD 80 million. BP’s deal for the North Tabia block was put at USD 65 million. The ministry also said six wells would be drilled, but it didn’t elaborate on specific locations.