Egypt, Eni seal long-term energy pact to unlock new gas potential through 2040

The Egyptian General Petroleum Corporation (EGPC) has signed a landmark agreement with Italy’s Eni—via its subsidiary IEOC Production—to extend the concession terms for the Gulf of Suez and Nile Delta regions through 2040.

This extension paves the way for the full-scale development of the area’s remaining petroleum and natural gas resources.

Egypt’s Minister of Petroleum and Mineral Resources, Kareem Badawi, described the agreement as a strategic milestone that builds on more than seven decades of successful cooperation with Eni.

He noted that the move reinforces Egypt’s capacity to achieve new gas discoveries and showcases Eni’s deep-rooted commitment to its operations in the country—an exemplary model of effective strategic partnership.

Badawi added that the updated concession terms will accelerate the adoption of cutting-edge exploration and production technologies, opening significant opportunities for fresh discoveries, increased output, and a notable reduction in Egypt’s reliance on imported energy.

Francesco Gaspari, Eni’s Country Manager in Egypt, confirmed that the agreement will initiate a major reinvestment cycle in Sinai—one centered on new multi-year exploration and drilling programs designed to enhance production capabilities.

He reaffirmed Eni’s commitment to the highest standards of safety, environmental protection, and emissions reduction.

Gaspari emphasized that this renewed engagement highlights Egypt’s attractiveness as a leading destination for global energy investment, demonstrating how technological innovation and operational excellence can support the country’s long-term energy strategy.

As part of the agreement, Eni will commence a new 3D seismic survey to uncover untapped subsurface potential, leveraging its advanced technologies and decades of geological expertise.

It is notable that the Belayim oil field—operated by Eni since 1954—remains Egypt’s most significant historic oil field.

With production expected to stay near 60,000 barrels per day in 2025, the field continues to serve as a cornerstone asset and a testament to the enduring Egypt–Eni partnership.