Italy’s Eni to Invest $7.7 Billion in Egypt’s Oil and Gas Sector

Eni, Italian energy major, has announced plans to invest $7.7 billion in several oil and gas projects in Egypt in the next four years, the Egyptian Presidency announced on Sunday.

This comes as part of the company’s objective to make optimal use of Egypt’s abundant energy resources, the Egyptian Presidency said after a high-level delegation led by Eni ‘s CEO Claudio Descalzi met with Egyptian President Abdul Fatah El Sisi.

Minister of Petroleum and Mineral Resources, Eng. Tarek El-Molla, and other senior officials from both sides attended the meeting.

Later, a spokesman for the Presidency, Counsellor Ahmad Fahmy, said that during the meeting, the President valued the outstanding Egyptian-Italian relations as well as the longstanding partnership with Eni. The President also appreciated the Eni’s multiple activities in Egypt at the highest global standards.

“El-Sisi said he was looking forward to further advancing the fruitful cooperation between Egypt and Eni in the areas of search, exploration, development, and production, with the aim of leveraging Egypt’s resources in the energy sector and enhancing the huge successes, which have been achieved in this regard over the past few years,” the spokesman said.

In his comments, Descalzi expressed his pride in cooperating with Egypt, in light of the close bonds between Egypt and Italy.

“He underscored Egypt’s great importance as one of the major markets for Eni’s activities and business worldwide, given the promising opportunities the energy sector in Egypt enjoys, particularly with the state and the President’s personal interest to upgrade this vital sector and maximise its return to Egypt,” the spokesman said.

Successful Cooperation

Noting that this cooperation has led to the establishment of a model of success that is acknowledged and appreciated around the world, Descalzi offered an overview of the Italian company’s activities in Egypt, which are being implemented in accordance with the highest standards of efficiency.

He pointed out that Eni and its partners are intent on injecting new investments into Egypt over the coming four years, at a value of $7.7 billion emanating from Eni’s commitment to boosting its successful projects in Egypt.

Descalzi also reviewed the company’s upcoming search and exploration plans as well as development operations activities that will enable Eni to maintain high production rates from the fields.

He also highlighted the progress achieved in energy efficiency and sustainability projects, that relate to the energy transition, in line with the Memorandum of Understanding signed in March 2023.

The investment sets a precedent for mutual benefits, fostering a successful model that is gaining global recognition and admiration. Eni has been present in Egypt since 1954, where it operates through the subsidiary IEOC. The company is currently the country’s leading producer with an equity hydrocarbon production of approximately 350,000 barrels of oil equivalent per day.