Italian oil major Eni has signed an exploration deal worth $2bn with Egypt’s state-owned energy company, which grants it permission to explore areas in the Sinai peninsula, the Gulf of Suez and the Mediterranean, as well as areas in the Nile Delta.

The deal was announced on 1 June by Egypt’s oil ministry.

Under the deal, Eni has agreed to invest three-quarters of the total sum in exploration, development and operation in Sinai and the Nile Delta.

In its statement, the oil ministry said the deal ”is a prelude for the finalising procedures of petroleum agreements amendment, to activate the work programmes; including modifying the gas price in some agreements and extending work in others”.

The latest agreement follows an memorandum of understanding that was signed by the two parties at the Egypt Economic Development Conference held in Sharm el-Sheikh in March.