Egypt has approved an exploration agreement with Italy’s Eni and the Egyptian Tharwa company to search for oil and gas in the Mediterranean off the coast of northern Sinai, the Egyptian oil minister said on Wednesday.
Under the deal, Eni and Tharwa will spend $105 million in two stages over six years, which involve drilling one well in the first stage and another in the second, Tarek El Molla told journalists.
Eni announced last week a new oil discovery in Egypt’s western desert. The oil discovery is on the A-2X exploration prospect located in the South West Meleiha license, in the Egyptian Western Desert, some 103 km North of the oasis of Siwa.
The well is the first one drilled by Eni to explore the deep geological sequences of the Faghur Basin.