Egypt Signs $2b Exploration Deal with Italy's Eni

Eng. Sherif Ismail, Minister of Petroleum and Mineral Resources, witnessed signing the agreement between the Egyptian General Petroleum Corp. "EGPC and the Italian Company - ENI, as a prelude for the finalizing procedures of petroleum agreements amendment, to activate the work programs; including modifying the gas price in some agreements and extending work in others, that’s in order to effectuate the Memorandum of Agreement, signed on the sidelines of the Economic Conference, held in Sharm El-Sheikh , last March between EGPC and ENI.

The agreement was signed by Eng. Tareq Al-Mulla, EGPC Executive Chairman, and Eng. Antonio Villa, ENI‘s Head of Exploration Activities.

The agreement includes the implementation of exploration and development activities at Belayim concession areas at Sinai, Abu Madi at Nile Delta, Ashrafi at Gulf of Suez, North Port Said in the Mediterranean and Baltim at offshore Nile Delta. According to the agreement, Eni and its partners will pump investments of about $ 2 billion.

The deal stipulates providing unrecoverable signature bonuses totaling $ 10 million, in addition to recoverable signature bonuses years of about $ 505 million for a period of 5 years. The parties agreed to use both bonuses in reducing ENI’s dues to EGPC.