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Eni and Egypt to reinforce co-operation in the hydrocarbon sector

Eni and the Egypt's Minister of Petroleum have signed a new framework for cooperation in the hydrocarbon sector. This agreement includes the extension for a further 10 years (through the end of 2030) of the licence for the giant field Belayim (Gulf of Suez), which Eni operates with a 100% stake. This extension will enable the company to implement an extensive investment program dedicated to the Sinai area in the activities of exploration, development and production of hydrocarbons. Eni is committed to spend $1.5bn in 5 years in investments, operating costs and in interventions aimed at optimizing production, with the objective of sustaining production volumes in the region and enhance the reserve recovery ratio. The parties could also further explore co-operation in the field of advanced production technologies. Under the new framework of co-operation Eni and Egypt's Ministry of Petroleum committ to jointly evaluate various alternatives for the definition of a commercial framework aimed at allowing the development of natural gas at high depths (deep gas). The development of deep gas, which is subject to high temperatures and pressures, requires advanced techniques and remarkable investments. Furthermore, Eni and Egypt's Ministry of Petroleum will also jointly evaluate hydrocarbons development initiatives in third-party countries, both in the upstream and in the downstream sectors.