The deal paves the way for the modification of some previous deals between the ministry and Eni that include gas price adjustments, the ministry said in a statement.
Eni will be able to explore in Sinai, the Gulf of Suez, the Mediterranean and areas in the Nile Delta.The Italian company will invest $1.5 billion over four years in exploration, development and operation in Sinai and the Delta.
A further $360 million will be invested in digging five new offshore oil exploration wells in northern Port Said; $80 million on digging a well in Sinai and repairing an existing one; and $40 million in the Gulf of Suez.
The agreement also includes signature bonuses totalling $515 million that would partly repay some of Egypt’s debts to Eni.
(Reporting by Ehab Farouk and Ahmed Aboulenein; editing by Yara Bayoumy and Jason Neely)
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