The Ministry of Petroleum and Mineral Resources of Egypt has signed a Head of Agreement with Italian energy group Eni for the development of oil and gas resources of the country. Eni will invest up to US$5bn over the next 4 years to develop upstream projects including 200 mbl of oil and 1.3 Tcf (37 bcm) of gas. The Head of Agreement sets the basis for the improvement of some contractual parameters, including the application of a new gas price where necessary. In addition, some permits granted to Eni will be extended in order to ensure adequate levels of profitability to some of the company's initiatives in Egypt like those in the Gulf of Suez, in the Western desert and in the Mediterranean offshore.
This agreement adds to BP's plans announced in early March 2015 and just confirmed to invest about US$12bn in the the West Nile Delta (WND) project, estimated to hold 5 tcf (more than 140 bcm) of gas resources and 55 mbl of condensate. The project envisages peak production of 1.2 bcf/d (34 mcm/d or 12.4 bcm/year), representing a quarter of Egypt’s current gas production. First gas is expected in 2017.