Paulo Scaroni, CEO of Italian major Eni, and Amin Hahmy, Egypt’s Minister of Petroleum, have jointly announced a new agreement for cooperation between the two parties. The initiatives will form the basis of the two working together to develop Egypt’s hydrocarbon reserves.
Under the cooperation agreement, Eni’s license for the giant Belayim field in the Gulf of Suez will be extended for a further 10 years through to the end of 2030. The company has stated that it is committed to spending US$1.5 billion in investments, operating costs and in interventions aimed at optimising production.
The agreement also calls for a commercial framework aimed at allowing the development of natural gas at high depths, also known as deep gas. The development of such deep gas, which is subject to high temperatures and pressures, requires a considerable amount of investment and advanced technologies.
“This is another example of Eni implementing its cooperation model in countries where it operates, satisfying the energy needs of producing countries and supporting them in reaching high standards of social and economical development,” read a company statement.
Eni is the main foreign energy player in Egypt. The company’s equity oil and natural gas production reached approximately 240,000 bpd in 2008.
