Eni signs framework agreement to develop Egypt's oil

(AGI) Rome, March 14 - The Egyptian Minister of Petroleum andMineral Resources, Sherif Ismail, and Eni's CEO, ClaudioDescalzi, signed a heads of agreement document on Saturdayduring the Egyptian Economic Development Conference (EEDC),which is being held in Sharm el-Sheik with the aim of boostingforeign investments in the Country. The agreement envisages afive billion dollar investment plan aimed at developing the oiland gas resources of the Country while preserving the return onEni's investments there, said a press release by the Italianmultinational oil and gas company. The investments will bephased over the next

(AGI) Rome, March 14 - The Egyptian Minister of Petroleum andMineral Resources, Sherif Ismail, and Eni's CEO, ClaudioDescalzi, signed a heads of agreement document on Saturdayduring the Egyptian Economic Development Conference (EEDC),which is being held in Sharm el-Sheik with the aim of boostingforeign investments in the Country. The agreement envisages afive billion dollar investment plan aimed at developing the oiland gas resources of the Country while preserving the return onEni's investments there, said a press release by the Italianmultinational oil and gas company. The investments will bephased over the next four years and will finance theimplementation of projects to develop 200 million barrels ofoil and 37 Bcm of gas. The investments are also expected toeffectively contribute to meeting the growing local demand forenergy. The heads of agreement document lays thegrounds for negotiating some contractual terms, including theapplication of a new gas price if necessary, and the extensionof a number of concessions in order to assure adequate levelsof profitability to some of Eni's initiatives in the Country,like those in the Gulf of Suez, in the Western Desert and inthe offshore waters of the Mediterranean. Theimplementation of Eni's projects will be subjected to thenecessary technical feasibility and cost-effectiveness studies,which will be performed by both parties. Eni has beenpresent in Egypt ever since 1954, mainly operating through itsaffiliate IEOC, and is the leading producer in the country,with an equity of approximately 210,000 boed. (AGI) . .