Eni’s $2 billion Egypt exploration deal
CAIRO, June 2, 2015 – Egypt’s oil ministry announced on Monday that national oil company Egyptian General Petroleum struck a $2 billion deal with Italian giant Eni for the exploration of Egypt’s offshore.
This agreement allows for Eni to explore Sina, the Gulf of Suez, the Mediterranean and parts of the Nile Delta. The Italian company has a planned for $1.4 billion spread over four years in the exploration, development and operation in both Sinai and the Delta. The company will invest a total of $440 million drilling and repairing wells in Port Said and Sinai and an additional $40 million in the Gulf of Suez.
This deal comes after the two parties signed a memorandum of understanding in March at an investment conference announcing an estimated $5 billion for developing Egypt’s oil and gas resources. Eni had also signed two concession agreements in January to operate blocks 8 and 9 in Egypt’s offshore in the Mediterranean Sea.