Italian oil and gas company Eni has signed a new concession agreement to operate in the southwest Melehia block in Egypt.
The deal was made following an international competitive bid put by the Egyptian General Petroleum Corporation (EGPC).
Eni is the main oil company operating in Egypt and produces around 210,000 barrels of oil per day (bopd).
Southwest Melehia is situated in the Western Desert in Egypt and is operated by Eni through its subsidiary IEOC, which holds a 100% stake in the concession.
The block covers an area of 2,058 sq km and is located immediately south of Melehia licence, operated by Agiba, a joint venture of IEOC and EGPC, which manages Eni’s operations in the Western Desert.
The Italian major said the acquisition of Southwest Melehia block adds to the list of exploration successes achieved in the area over the past two years.Â
It also added that this will further strengthen its position in Egypt, which it considers an area of historic and strategic importance.
Last year Eni was awarded three new exploration licenses in the Western Desert and blocks 8 and 9 offshore the Mediterranean by state owned Egyptian Natural Gas Holding Company.
Meanwhile, EGPC launched a new round for bidding for three blocks in the South Sinai, Egypt, for which there had been indications of oil reserves.
The three blocks are Sidr, Mtarma and Assal, covering a total of 95 sq km and will be treated as a single package for bidders.
Â
Â
