The Italian multinational oil and gas company, Eni, signed a new agreement with the Egyptian General Petroleum Corporation (EGPC) on Monday to modify previous oil agreements between both parties. Eni will pump $2bn in the Egyptian oil sector.
Minister of Petroleum Sherif Ismail witnessed the signing of the agreement, which was discussed during the Egypt Economic Development Conference (EEDC), held in Sharm El-Sheikh last March. The agreement calls for ending the modifying procedures concerning oil agreements to start action programmes, which include modifying gas prices in some agreements.
The agreement includes exploratory and fund activities in the fields of Balaim in Sinai, Abu Madi in the Nile Delta, Asharfi in the Gulf of Suez, north Port Said in the Mediterranean zone, and Baltim in the maritime zone of the Nile Delta.
As per the agreement, Eni and its partners will pump investments amounting to almost $2bn. $1.5bn will be spent in the field in Sinai as well as Abu Madi in order to implement exploratory, development and operational activities over four years. $360m will be spent on additional activities, which include drilling five wells in north Port Said. Additionally, $80m will be the amount of investments in the Baltim field, for reconstructing a well and drilling another. $40m will be spent in the Asharfi field in the Gulf of Suez.
The agreement includes non-refundable signed grants amounting to $10m, along with refundable signed grants estimated at $505m over five years. The two parties agreed on using these signed grants, whether refundable and non-refundable, to reduce the company’s dues to the EGPC.