Egypt signed an exploration deal worth $2bn with Italian company Eni, the Petroleum Ministry said on Monday.

The deal encompasses four years of exploration activities in the Sinai and Nile Delta regions, worth $1.5 billion, said Petroleum Minister Sherif Ismail in a statement. The remaining sum would be used in the governorates of Suez and Port Said, he added.

The deal also includes $10 million worth of non-refundable grants, as well as $505 million grants, refundable within 5 years. The grants will be used to reduce Eni’s dues to Egypt’s Petroleum Authority, the statement read.

Eni signed with Egypt a framework agreement during the Egypt Economic Development Conference last March worth around $5 billion to develop the country’s oil resources over the next four years.

Source: Aswat Masreya