Bahrain’s National Oil and Gas Authority (NOGA) has signed a memorandum of understanding (MoU) with Italian Eni to pursue petroleum exploration of Block 1, Zawya reported citing Gulf Daily News.
Block 1 is an offshore area that covers more than 2,800 square kilometers (sqkm), and is located in the northern territorial waters with depth ranging from 10 meters (m) up to 70 m.
“The partnership agreement does incur any financial burden for Noga until the discovery and extraction of oil according to quantities specifically mentioned in the deal,” the Financial and Economic Affair Committee stated, adding that “the terms stipulated in the said agreement are among the best conditions that can be negotiated in light of the global economic and oil conditions”
The deal will flourish Bahrain’s economy, oil production as well as its oil and gas sector. The Shura council, which backed the deal, will also discuss laws on protection from radioactive materials, the environment and the reuse and recycling of renewable materials.