Eni Extends Egyptian Onshore Permits

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Eni has reached an agreement with Egypt and Russia’s Lukoil to merge the Meleiha and Meleiha Deep permits in the Western Desert into a single concession and to extend their duration. The move comes after Royal Dutch Shell recently sold its permits in the desert (IOD Mar.9'21). Under the agreement the new merged Meleiha Block will be operated by Agiba Petroleum Co., a 50-50 joint venture between Egyptian General Petroleum Corp. and Eni subsidiary International Egyptian Oil Co. (IEOC). IEOC holds a 76% stake in the merged permit and Lukoil 24%. Operatorship is now extended to 2036 with a further option to 2041. Eni reported a discovery on its Meleiha concession in December that added 10,000 b/d of gross oil production (IOD Dec.23'20). It was also agreed that Agiba will oversee construction of a new gas treatment plant to be connected to the Western Desert Gas Complex in Alexandria on Egypt’s Mediterranean coast. The partners have secured "enhanced contractual terms" according to the Eni statement. They plan 3-D seismic and a drilling campaign. Eni is Egypt's top producer with equity production of around 320,000 boe/d. It has been active in the country since 1954.

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