Italian energy major Eni signed an agreement with the Arab Republic of Egypt, the Egyptian General Petroleum Corporation (EGPC) and Lukoil for the merger of concessions in Egypt's Western Desert, Eni announced in a statement Wednesday.
The agreement, which marks another important result for Eni in the prolific basin of the Egyptian Western Desert, will unlock, through enhanced contractual terms, the area’s considerable resources, thanks to a high-resolution 3D seismic acquisition and an intensive exploration and development drilling campaign.
The deal will also allow the merged Meleiha and Meleiha Deep concessions to be extended to 2036, with the possibility of reaching further to 2041.
The company said the construction of a new gas treatment plant, which will be connected to the Western Desert Gas Complex in Alexandria, would allow further exploitation of the region's gas reserves, strengthening Eni's role as the largest gas producer in Egypt.
The company will leverage the skills of local contractors already involved in the implementation of important projects in Egypt, including the fast-track development of the giant Zohra gas field.
Agiba, a joint venture between EGPC and Eni, each with a 50% stake through its subsidiary IEOC that holds a 76% interest in the concession, will operate the concession, while Lukoil will hold a 24% interest.
Eni has been present in Egypt since 1954 where it is the country's main producer. Eni's current equity hydrocarbon production is around 320,000 barrels of oil equivalent per day.
By Sibel Morrow