Egypt’s Ministry of Petroleum signed Monday an energy exploration deal with Italy’s Eni worth $2 billion, activating an MOU signed during an economic summit in March.
Egypt’s government is working to tackle the worst energy crisis that the country has faced over the past years; rolling power cuts in the summer have become routine since the January 25 Revolution in 2011, caused by fuel shortfalls at power plants, and increasing demand.
The deal paves the way for amending some previous deals between the ministry and Eni, including gas price adjustments, the ministry said in a Monday statement.
The deal will allow the Italian company to explore and develop areas in its concessions located in Sinai, the Suez Gulf, the Mediterranean and the Nile Delta.
Under the deal, Eni will inject $1.5 billion investment over four years in exploration, development and operation in Sinai and Delta’s Abu Madi.
An extra $360 million will be allocated to dig five new wells in northern Port Said, and some $80 million will be invested in digging a well and repairing another in Delta’s Balteem concession, and $40 million in Suez Gulf’s Ashrafi concession, the statement detailed.
