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Eni to inject five billion dollars into Egypt's oil and gas sector

16th March 2015

The Egyptian minister of petroleum and mineral resources, Sherif Ismail, on Saturday signed with Eni’s CEO, Claudio Descalzi, a head of agreement aimed at the development of the oil and gas resources of the country while preserving the return of Eni’s investments

The Egyptian minister of petroleum and mineral resources, Sherif Ismail, on Saturday signed with Eni’s CEO, Claudio Descalzi, a head of agreement aimed at the development of the oil and gas resources of the country while preserving the return of Eni’s investments
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 barrels of oil and 1.3 TCF of gas

The head of agreement envisages investments of an estimate five billion dollars 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 barrels of oil and 1.3 TCF 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 the country like those in the Gulf of Suez, in the Western desert and in the Mediterranean offshore.

The agreement is subject to the appropriate assessment of technical and economic feasibility from both parties.

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC, and is the market leader with an equity production of approximately 210,000 barrels of oil equivalent per day.

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