BP and Eni Sign Agreement to Boost Hydrocarbon Exploration in the Mediterranean

Two European energy giants, BP and Eni, have joined forces to enhance hydrocarbon exploration activities in the Mediterranean Sea, with Egypt set to benefit from increased oil and gas production. The agreement, signed between the Egyptian General Petroleum Corporation (EGPC), Egyptian Natural Gas Holding Company (EGAS), Eni, and BP, aims to kickstart exploration efforts in the region.

Egypt’s Ministry of Petroleum and Mineral Resources unveiled the incentive agreement as part of its strategy to attract investment in hydrocarbon exploration. The country plans to drill 586 oil and gas wells by 2030, with BP actively expanding its presence in Egypt through ventures like the BP-XRG JV with ADNOC.

Eni, after successfully drilling a well with Saipem’s rig, is gearing up to start drilling the Zohr 13 well, which is expected to add 55 million cubic feet of gas per day to Egypt’s production capacity. This move is in line with Egypt’s efforts to maximize production and tap into offshore resources.

Key Figures and Witnesses

The signing of the agreement was attended by Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Eni’s Head of North Africa and the Levant Region, Martina Opizzi. Salah Abdel Karim, Yassin Mohamed, Francesco Gaspari, and Wael Shaheen represented EGPC, EGAS, Eni Egypt, and BP, respectively.

Under the terms of the agreement, drilling activities will commence in the Temsah concession area in the coming months, with a focus on advancing natural gas exploration and uncovering new discoveries. The collaboration between EGPC, EGAS, and their partners underscores the importance of leveraging advanced technologies and expertise in the sector.

Badawi emphasized the agreement’s goal of boosting domestic oil and gas production to meet the country’s energy needs. The signing ceremony was also attended by key officials from the Ministry, EGPC, and Eni, highlighting the collaborative nature of the initiative.

Unlocking New Resources

By harnessing Eni and BP’s technologies, Egypt aims to unlock new resources that will benefit the country and all stakeholders involved. The recent licensing round for undeveloped fields in the Mediterranean Sea, as well as offshore and onshore exploration areas, underscores Egypt’s commitment to expanding its hydrocarbon portfolio.

Shell, through its affiliate BG International, has also made strides in Egypt’s hydrocarbon sector, with a recent investment decision to develop a gas discovery in the Mediterranean Sea. The collective efforts of industry players like BP, Eni, and Shell are set to bolster Egypt’s position as a key player in the region’s energy landscape.