The Egyptian General Petroleum Corp. (EGPC) and Italian giant Eni entered into a US$2 billion deal for exploration and development activities offshore Egypt.
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Image from Egypt Ministry of Petroleum. |
The agreement, signed by EGPC Executive Chairman Tareq Al-Mulla and Antonio Villa, Eni’s head of exploration activities, includes the implementation of exploration and development activities at the Belayim concession areas at Sinai; Abu Madi in the Nile Delta; Ashrafi in the Gulf of Suez; North Port Said in the Mediterranean Sea; and Baltim offshore Nile Delta, a statement from Egypt’s oil ministry said.
The agreement includes a total of $515 million in bonuses: $10 million in unrecoverable signature bonuses, and $505 million in recoverable signature bonuses for a five-year period.
The deal comes after the March 2015 announcement of Eni investing an estimated $5 billion for the development of oil and gas resources in Egypt, over the next four years that include the development of 200 MMbbl and 1.3 Tcf of gas.
Eni's Egyptian exploration
In January, Eni signed two concession agreements to explore Blocks 8 and 9 in the Mediterranean Sea offshore Egypt as part of the 2013 Egyptian General Petroleum Corp. (EGAS) bid round.
North Leil is located in Block 9, which covers 5105sq km and is in 2100-2800m water depth. Karawan is located in Block 8, that covers 4565sq km and is in water depths ranging from 2000-2500m.
Eni is the operator of both concessions. The company, through subsidiary IEOC, holds 100% interest in North Leil and 50% interest in Karawan, with partner with BP (50%).
In August 2014, Eni and BP began production at the Egyptian Denis-Karawa (DEKA) project through the subsea well Denise South 6 with a gas rate of 1.8 MMcm/d and of about 800 b/d of condensates.
The Denise South 6 is the first development well of the DEKA Project located in the Temsah concession area, in the offshore Nile Delta. The project is focused on the development of gas discoveries with five subsea wells, the installation of subsea production systems, together with sealines and gas processing at the onshore El Gamil Gas Plant.
Read more:
Eni in US$5 billion Egypt venture
Egypt’s bid to spur oil, gas activity
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