Italian oil and gas company Eni and Egyptian General Petroleum Corp, EGPC have signed an oil and gas exploration deal, following a memorandum of agreement penned in March, earlier this year.

Egypt’s energy ministry said that newly signed deal “is 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…”

The agreement was signed by Tareq Al-Mulla, EGPC Executive Chairman, and 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.

Source: www.offshoreenergytoday.com

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