Egypt’s decision to extend Italian energy company Eni’s concessions in the Gulf of Suez and Nile Delta to 2040 marks a significant shift in the country’s petroleum strategy and reflects strong foreign investor confidence in the sector, energy expert Mohamed Heliwa has said.
Heliwa told Egypttech the extension will allow Egypt to maximize use of existing infrastructure and apply advanced exploration and production technologies, strengthening energy security amid regional challenges and volatile global oil and gas markets.
The Petroleum Ministry announced the extension on Nov. 13, following an agreement signed between the Egyptian General Petroleum Corporation and Eni’s IEOC Production in the presence of Petroleum Minister Karim Badawi.
The renewed concession covers key areas including the onshore and offshore Belayim field — Egypt’s largest historic oil field, discovered in 1954 — which currently produces about 60,000 barrels per day. It also includes major gas fields such as Zohr and Baltim.
Under the agreement, Eni will conduct large‑scale 3D seismic surveys using advanced geological imaging and launch an expanded reinvestment program that includes drilling new wells.
Drilling began on the Belayim Marine‑133 well on Dec. 23 using the Trident 16 rig, targeting depths beyond 2,600 meters. Eni’s total investments in Egypt are estimated at $8 billion over five years.
The company has also committed to high environmental and safety standards, including reducing carbon emissions in line with global sustainability goals and Egypt’s energy‑transition strategy.
Economically, Heliwa said the extension is expected to boost domestic oil and gas output and reduce import needs, easing pressure on the trade balance. Egypt plans to drill around 480 exploration wells by 2030 with investments of $5.7 billion.
Badawi described the agreement as a “strategic achievement” that builds on a partnership spanning more than 70 years and paves the way for new discoveries and higher production.
Eni’s Egypt country manager, Francesco Gaspari, said the company is launching a major reinvestment campaign, including new exploration and drilling programs, particularly in Sinai.
Heliwa added that the agreement is likely to create new jobs in petroleum regions such as Sinai and the Gulf of Suez, supporting local development and reinforcing Egypt’s position as a regional energy hub.