Eni Pumps $1 Billion for Oil Exploration in Egypt's Nile Delta, Gulf of Suez

Italy's Eni injects $1 billion in investments in the field of oil and gas research and production in Egypt

The Egyptian Ministry of Petroleum announced on Friday that it had concluded an agreement with the Italian company "Eni" to explore for oil in the Gulf of Suez and Nile Delta with a total investment of not less than $1 billion.

The ministry stated, in a press statement issued today, that the agreement concluded between the Egyptian General Petroleum Corporation (EGPC) and the Italian company is for "the exploration of petroleum in the areas of the Gulf of Suez and the Nile Delta."

Under this agreement, the Italian company is obligated to spend at least $1 billion in investments in this field, in addition to its commitment to spend no less than an additional $20 million to drill 4 wells.

The agreement was signed between the Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla, the CEO of EGPC Abed Ezz Al-Regal, and the CEO of Natural Resources Activities at Eni, Alessandro Politi.

The statement pointed out that the new agreement comes within the framework of the new methodology of the Egyptian Ministry of Petroleum regarding “increasing production rates and facing the natural decline of wells by using the latest technologies in some currently producing areas, and working to achieve the difficult equation between obtaining balanced terms with partners and encouraging them to pump more investments in various fields of research and exploration for oil and gas, and work to confirm the likely reserves shown by seismic studies and the evaluations carried out by international companies operating in Egypt."