Energy

Italy’s Eni commits $8bn to Egypt’s energy sector

September 5, 2023, 10:35 AM

Eni CEO Claudio Descalzi — Eni's CEO Claudio Descalzi said that Egypt is one of the most important markets worldwide, given the promising opportunities offered by its energy sector

$7.7bn investment over four years
Eni produces 350,000 bpd equivalent
Egypt’s net-zero goal is 2050

Italian oil and gas company Eni plans to invest almost $7.7 billion in Egypt over the next four years, according to Egyptian presidential spokesman Ahmad Fahmi.

The announcement was made after Egypt’s President Abdel Fattah El Sisi met with Eni CEO Claudio Descalzi on Sunday.

The meeting was also attended by Egypt’s minister of petroleum and mineral resources Tarek El-Molla and senior Eni officials.

During the meeting, Descalzi presented an update on Eni’s activities in Egypt, as the Italian company seeks to further expand its presence in the country.

Fahmi stated that Egypt expected to strengthen collaboration in exploration, development, production and research.

Eni has been present in Egypt since 1954, where it operates through the subsidiary IEOC.

The company is currently Egypt’s leading producer, producing approximately 350,000 barrels of oil equivalent per day and managing a total landbank of 18,712 square kilometres.

In January Rome-based Eni announced a significant discovery at the Nargis-1 exploration well in the Nargis Offshore Area concession, in the Eastern Mediterranean Sea.

In line with Egypt’s strategy to be net-zero by 2050, Eni is engaged in a series of initiatives including the development of projects such as carbon capture and storage, renewable energy plants and feedstock for biorefining.

Egypt is struggling to fight its rising inflation and overcome its hard currency shortage and some projects in its oil and gas sector have been canceled or delayed. However, several international companies have revealed their investment intentions in recent months.

El-Sisi in August met BP CEO Bernard Looney. The UK multinational oil and gas company intends to invest $3.5 billion in Egypt over the next three years.