Egyptian authorities have approved a new hydrocarbon concession agreement for the Italian energy company Eni, granting it an exploration license in the East Nile Delta Basin of the Mediterranean Sea.

In a released statement, Eni announced that the license is named “Nour”, and is located approximately 50 kilometres offshore in the eastern Mediterranean.

The total concession area covers an area of 739 square kilometres (sq km), and water depths range between 50 and 400 metres. Eni says it plans to drill an exploration well in the second half of 2018.

It said: “This new acquisition further strengthens Eni’s position in Egypt, an area of historic and strategic importance for the company.”

Eni also announced that Egyptian Authorities have authorised a new Nile Delta Concession Agreement, allowing a 10 year extension of the Abu Madi West Development Lease, where the Nooros field is located.

The agreement will also allow further exploration activities within El Qar’a Exploration Lease. These assets are located in the “Great Nooros Area”, in the offshore Nile Delta region.

Egyptian Authorities have also authorised a five-year extension of the Ras Qattara Concession Agreement and Development Lease. 

Following this extension, Eni is planning a new drilling campaign in the Zarif and Faras fields in the hopes that it will unlock remaining hydrocarbon reserves, and allow further exploration activities within the Western Desert basin.

The Nooros field is currently producing 32 million cubic meters of gas per day.

Eni, through its subsidiary IEOC, holds a 75 per cent stake in the Concession in partnership with BP, which has a 25 per cent stake.

The operator of “Nile Delta” is Petrobel, a joint venture (JV) between IEOC and Egyptian General Petroleum Corporation (EGPC).

Nour is operated by Eni through its subsidiary IEOC.

In the the Ras Qattara concession, which covers an area of 104 sq km, Eni holds a 75 per cent stake while its partner INA holds a 25 per cent stake.

The Operator is AGIBA, a JV between Eni’s subsidiary IEOC and Egyptian General Petroleum Corporation (EGPC).

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC. The company is the country's leading producer with equity of approximately 300,000 barrels of oil equivalent per day.