Eni has reached a deal with the Republic of Egypt, the Egyptian General Petroleum Corporation (EGPC), and Russian oil and gas firm, Lukoil, for the merging of the Meleiha and Meleiha Deep concessions in Egypt’s Western Desert, as well as their extension to 2036 and 2041.

The agreement is significant for Eni in the prolific Egyptian Western Desert basin, as it will help to unlock the area’s significant resources through improved contractual terms, thanks to high-resolution 3D seismic acquisition and an intensive exploration and development drilling campaign.

The construction of a new gas treatment plant in Alexandria, which will be connected to the Western Desert Gas Complex, will allow Eni to further exploit the region’s gas reserves, bolstering Eni’s position as Egypt’s largest gas producer.

The company will rely on the skills of local contractors who have already worked on major projects in Egypt, including the rapid development of the massive Zohr gas field.

The concession will be run by Agiba, a 50/50 joint venture between EGPC and Eni, through its subsidiary IEOC, which owns a 76% stake in the concession and Lukoil with a 24% stake.