Italy's Eni Secures 3 out of 4 Blocks in Egypt Round

Egypt continues to assert its influence in the energy sector as it awards prime Mediterranean Sea blocks in its recent auction managed by the Egyptian Natural Gas Holding (EGAS).

Italian energy heavyweight, Eni, emerged as the primary victor, securing three of the four coveted areas. Two exclusive wins for Eni were in the Mediterranean, while the third sees the company joining forces with industry titans BP and QatarEnergy (QE). In contrast, Russia's Zarubezhneft anchored its presence by acquiring the fourth licence, located in the Nile Delta.

Egypt’s Ministry of Petroleum and Natural Resources, spotlighting the investment inflow, disclosed that the companies are committed to a robust investment exceeding $281 million, with plans underway to drill up to 12 wells. The exploration phases are further sweetened by a $7.5 million signature bonus.

Initially unveiled at the tail end of 2022, the auction's closing was rescheduled from April 20 to July. It encompassed 12 blocks in total, evenly divided between onshore and offshore territories.

In the wake of this successful round, Egypt, supported by the Egyptian General Petroleum Corp. (EGPC) and the South Valley Egyptian Petroleum Holding Co. (Ganope), launched another enticing bid round.