The Egyptian General Petroleum Corporation (EGPC) plans to revise the price formula with Italy’s giant Eni for natural gas produced from Zohr field by the end of 2019, based on the development agreement which states revising the prices after two years from production start, in 2017, a source at EGPC told Al Borsa News.

The price of natural gas produced from Zohr field is linked to a formula of $4 per 1 million thermal units (mtu) as a minimum price, and $5.88 per 1mtu as a maximum price when global crude oil price reaches $100 per barrel.

The annex related to reviewing prices has been added lately in new development agreements, in order to cope with market changes, including the increase or decrease of production costs, and to encourage international oil companies (IOCs) to commit pumping investments according to the agreed amounts.