Italian giant Eni has inked an exploration and production sharing agreement (EPSA) with the Bahraini National Oil and Gas Authority (NOGA) for offshore Block 1, Pipeline Oil and Gas Magazine reported.

The agreement was signed in the presence of Mohamed Al Khalifa, Bahrain’s Minister of Oil and NOGA’s Chairman, and Claudio Descalzi, Eni’s CEO.

By signing the EPSA agreement, that follows a joint study led by Eni in 2016, the Italian giant will be responsible for the block’s exploration activities.

With this deal, Eni has a greater opportunity to strengthen its existence in Bahrain, in a way that will diversify its exploration portfolio across basins with liquid hydrocarbon potential.

Block 1 covers an area of 2,800 square kilometers (km2) and is located in Bahrain’s northern territorial waters with water depth ranging from 10 to 70 meters.