Italian oil and gas company Eni has inked a number of agreements with state-run companies Egyptian General Petroleum Corporation (EGPC) and Egyptian Natural Gas Holding Company (EGAS), and Spanish power company Naturgy, to end a dispute over the Damietta gas liquefaction plant and resume production by the first quarter of 2021.
The agreements signed yesterday build on those signed in February.
Prior to the agreements, Eni owned a 40 percent stake in SEGAS, owner of the liquefaction plant, via Union Fenosa Gas, a joint venture in which Eni and Naturgy each hold 50 percent.
Under the agreements, Naturgy will withdraw from Union Fenosa Gas; EGAS will own 30 percent; and Eni will maintain its 50 percent stake, raising Eni's share in SEGAS from 40 to 50 percent.
The other 50 percent of SEGAS will thus be reallocated, with 40 percent going to EGAS and 10 percent to EGPC.
The Damietta gas liquefaction plant has an annual production capacity of 7.56 billion cubic meters, but has been out of operation since November 2012.