Egypt, Eni Extend Strategic Oil, Gas Commitment to 2040

In a landmark move signaling long-term cooperation in the energy sector, Egypt and Italy’s Eni have officially extended their operational commitment in the Gulf of Suez and the Nile Delta until 2040. 

The agreement, signed yesterday, allows for full economic exploitation of the regions’ petroleum and gas resources.

The signing ceremony took place under the supervision of Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi. Representing the Egyptian side was Salah Abdel Karim, CEO of the Egyptian General Petroleum Corporation (EGPC), while Eni was represented by Francesco Gasparri, General Manager of Eni Egypt, alongside Deputy General Manager Mahmoud Abu El-Yazid.

Minister Badawi described the agreement as a “strategic achievement” that builds on more than 70 years of collaboration with the Italian energy giant. He highlighted that the deal marks a crucial step in Egypt’s national energy strategy, particularly in meeting domestic demand for petroleum products through intensified exploration, production, and development efforts.

“Eni’s commitment in Egypt exemplifies a successful model of strategic partnership,” Badawi said, noting that the new agreement paves the way for implementing cutting-edge technologies in exploration and production. “This represents a unique opportunity to discover new resources, increase output, and reduce import dependence.”

Gasparri emphasized that the agreement would trigger a significant reinvestment campaign in Sinai. The initiative will focus on long-term exploration and drilling activities aimed at boosting production capacity while adhering to the company’s rigorous health, safety, and environmental standards. “Our goal is to conduct safer operations with lower carbon emissions,” Gasparri added.

The extension also underscores Egypt’s attractiveness as an energy investment destination, demonstrating how technological innovation and operational excellence can shape the country’s energy future.

As part of the agreement, Eni will launch a new 3D seismic survey campaign to identify untapped resources, leveraging its specialized technology and geological expertise. 

Historically, the Belayim oil field, part of Eni’s concession since 1954, remains Egypt’s largest oil-producing field, with output expected at 60,000 barrels per day in 2025, serving as a strategic asset and symbol of the enduring Egypt-Eni partnership.

The new 2040 extension solidifies Eni’s long-term presence in Egypt while aligning with the country’s vision for sustainable energy development and economic growth.