Eni has agreed to sell the natural gas produced by the Faramid well to the Egyptian Ministry of Petroleum for $2.60 per 1 million British thermal units (mbtu), the Middle East North Africa Financial Network (MENAFN) reported quoting Daily News Egypt.

Production from the Faramid well, which was recently discovered in Eni’s Western Desert concessions, is set to be connected to the Shell-owned Obaiyed gas processing plant.

However, the well will be closed until the two companies reach an agreement and a pipeline is constructed between the two facilities.

Eni announced the Faramid discovery in September, saying that it is delivering an initial 25 million standard cubic feet of gas per day (mmscf/d).

The well was drilled to a depth of 17,000 feet, and is located in the Faramid South prospect in the East Obaiyed concession.