Egypt Signs Exploration Deal with Italy's Eni Worth $2B

Egypt Signs Exploration Deal with Italy's Eni Worth $2B
Egypt's oil ministry says it has signed a $2-billion energy exploration deal with Italy's Eni.


CAIRO, June 1 (Reuters) – Egypt's oil ministry said on Monday it had signed an energy exploration deal with Italy's Eni worth $2 billion following an MOU signed in March during an investment conference.

The deal paves the way for the modification of some previous deals between the ministry and Eni that include gas price adjustments, the ministry said in a statement.

Eni will be able to explore in Sinai, the Gulf of Suez, the Mediterranean and areas in the Nile Delta.

The Italian company will invest $1.5 billion over four years in exploration, development and operation in Sinai and the Delta.

A further $360 million will be invested in digging five new wells in northern Port Said; $80 million on digging a well in Sinai and repairing an existing one; and $40 million in the Gulf of Suez.

The agreement also includes signature bonuses totalling $515 million that would partly repay some of Egypt's debts to Eni.

(Reporting by Ehab Farouk and Ahmed Aboulenein; editing by Yara Bayoumy and Jason Neely)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Contract Administrator
Expertise: Contracts Administration
Location: Houston, 
Business Development Manager
Expertise: Business Development
Location: Houston, TX
Project Controls Analyst
Expertise: Project Management
Location: Corpus Christi, 
search for more jobs

Brent Crude Oil : $51.87/BBL 0.40%
Light Crude Oil : $47.64/BBL 0.56%
Natural Gas : $2.94/MMBtu 0.67%
Updated in last 24 hours