Eni, Egypt update HoA following recent gas discovery

The Egyptian Minister of Petroleum and Mineral Resources, Sherif Ismail, and Eni’s CEO, Claudio Descalzi signed an update to the Head of Agreement signed last March.

The update describes the commitment of the parties to jointly evaluate the development opportunities of the gas discovery made by Eni in the Nile Delta concession, by renegotiating the terms and contract extension of the concession, Eni revealed in a statement.

Preliminary estimates of the discovery, located in the Abu Madi West license in the Nile Delta offshore, account for a potential of 15 billion cubic meters of gas in place with upside, plus associated condensates. Eni intends to focus on a fast track exploitation of this potential to fill up the processing capacity of Abu Madi Gas Plant.

The update further reaffirms and strengthens the commitments undertaken with the Head of Agreement signed last March, which, following the revision of the contractual parameters and temporary extensions of some concessions, envisages investments of an estimated 5 billion dollars. The investment will lead to the realization of projects to be implemented in the next 4 years and 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.

Image: Eni