Eni to Boost Investment in Egypt

Italian energy major Eni will boost investment in Egypt, Claudio Descalzi, CEO of Italian oil company said Saturday.

According to a statement by Egypt’s State Information Service, the announcement was made during Descalzi’s meeting with President Abdel Fattah El Sisi in Cairo. Also in attendance were Italian Ambassador in Egypt Maurizio Massari and Minister of Petroleum and Mineral Resources Eng. Sheriff Ismail.

In January, Eni signed multiple exploration deals with EGAS. The company has been present in Egypt since 1954 and is currently the largest international energy player in the country, with a hydrocarbon equity production of approximately 220,000 barrels of oil equivalent per day.

Egypt’s natural gas output has seen a declining trend in recent years primarily because foreign firms have been reluctant to increase investment in exploration and production, particularly in costly offshore areas, until the government repays their previous outstanding debt.

Since late last year, Cairo has also been clearing outstanding debt to energy firms. In last few months the government has made payments to companies such as BG Group, Dana Gas and Circle Oil Plc.