Eni Committed to Spend $1.5B in 5 Years in Egypt Deal
Eni CEO, Paolo Scaroni, and Egypt's Minister of Petroleum, Amin Sameh Samir Fahmy, announced new initiatives creating a new framework for co-operation between the two parties. These initiatives will enable Eni and Egypt's Ministry of Petroleum to broaden and enhance their mutual co-operation aimed at developing hydrocarbon reserves in the Country and start joint activities for the training of personnel.
Exploration and Production of Hydrocarbons
The new co-operation initiatives include the extension of the license for the giant field Belayim (Gulf of Suez), which Eni operates with a 100% stake, for a further 10 years through the end of 2030. The extension of the Belayim licence, which is the first ever oil discovery in Egypt and was made by Eni, will enable the company to implement the extensive investment program dedicated to the Sinai area in the activities of exploration, development and production of hydrocarbons. Eni is committed to spend 1.5 billion $ in 5 years in investments, operating costs and in interventions aimed at optimizing production, with the objective of sustaining production volumes in the region and enhance the reserve recovery ratio. The parties could also further explore co-operation in the field of advanced production technologies.
Exploration and Production of Natural Gas
Under the new framework of co-operation Eni and Egypt's Ministry of Petroleum committ to jointly evaluate various alternatives for the definition of a commercial framework aimed at allowing the development of natural gas at high depths (deep gas). The development of deep gas, which is subject to high temperatures and pressures, requires advanced techniques and remarkable investments.
Eni intends to exploit the significant development opportunities that Egypt presents in deep gas, with the aim of contributing to sustaining the country's home market demand as well as optimizing export opportunities.
Eni and Egypt's Ministry of Petroleum recognize the importance of education to enhance the level of independence of Egypt's oil and gas sectors. Eni will place its infrastructure and Eni Corporate University at the disposal of the Ministry. Eni Corporate University is the Eni-controlled company for selection, education and knowledge management, and will be used to implement a joint education project aimed at recruiting high-profile selected resources.
Furthermore, Eni and Egypt's Ministry of Petroleum will also jointly evaluate hydrocarbons development initiatives in third-party countries, both in the upstream and in the downstream sectors.
This is another example of Eni implementing its cooperation model in countries where it operates, integrating traditional business with activities capable of satisfying the energy needs of producing countries and supporting them in reaching high standards of social and economical development.
Eni is the main foreign energy player in Egypt. The company's equity oil and natural gas production reached approximately 240,000 barrels of oil equivalent per day in 2008. Eni operates in Egypt through the International Egyptian Oil Company (IEOC), which directly carries out exploration activities and participates in production Egyptian-Italian partnerships.
Operates 11 Offshore Rigs
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