SAN DONATO MILANESE, Italy -- Eni has signed a strategic framework agreement with Egypt's Ministry of Petroleum. The accord covers development of joint initiatives in exploration, production, and transportation of hydrocarbons.
It also reinforces the cooperation between the two parties and Egyptian state oil and gas companies EGPC and EGAS which started in 1954.
The new agreement, which follows the signing in May 2009 of a cooperation initiative, sets forth the following program of joint activities:
• Initiatives in the Mediterranean basin through a joint venture between Eni and EGPC and/or EGAS. The agreement provides for mutual exchange of information and joint studies to pursue common projects
• Participation of EGPC and/or EGAS in Eni’s upstream oil and gas activities outside Egypt, including development of oil fields in Iraq and Gabon
• An initiative sponsored by the Ministry of Petroleum will seek to secure rights for Eni to acquire gas transportation capacity in the Arab Gas Pipeline system, the gas transport system through which Egypt currently exports gas to Jordan, Syria, and Lebanon, and which may be expanded and interconnected to other gas transport systems in the future. Potentially, it could be used for physical gas swaps and transportation of purchased gas to and from Egypt.
The aim of these initiatives, according to Eni, is to form the basis for developing a leading Mediterranean gas hub in Egypt.
Eni claims to be the largest foreign energy investor in Egypt, with oil and natural gas production averaging around 230,000 boe/d in 2009. The company operates through its wholly owned subsidiary, the International Egyptian Oil Co. (IEOC), which performs exploration and participates in joint venture partnerships.