The Egyptian Minister of Petroleum and Mineral Resources, Sherif Ismail, and Eni’s CEO, Claudio Descalzi, have signed a Head of Agreement (HoA) aimed at the development of Egypt’s oil and gas resources, while preserving the return of Eni’s investments.
The HoA envisages investments of approximately US$5 billion of total value and was signed within the framework of Egyptian Economic Development Conference (EEDC) aimed at boosting foreign investments in the Country.
The investments, which will be utilised through the realisation of projects to be implemented in the next four years, are directed to the development of 200 million bbl of oil and 1.3 trillion ft3 of gas. These investments will also contribute effectively to the increasing energy needs of local demand.
The agreement sets the basis for the improvement of some contractual parameters, including the application of a new gas price where necessary, as well as the extensions of some permits in order to ensure adequate levels of profitability to some of Eni’s initiatives in Egypt, such as those in the Gulf of Suez, in the Western desert and in the Mediterranean offshore.
The realisation of these initiatives by Eni is subject to the appropriate assessment of technical and economic feasibility from both parties.
Edited from press release by Callum O'Reilly
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