Bahrain, which is set to start LNG imports soon, has signed an exploration and production sharing agreement with Eni, the Italian energy company with a recent record of huge natural gas discoveries offshore Egypt and Mozambique.
Eni has signed its exploration and production sharing agreement with the National Oil and Gas Authority of Bahrain (NOGA) for offshore Block 1.
The Italian company said that under the terms of the agreement, Eni will pursue exploration activities in an offshore area in the Gulf of over 2,800 square kilometres in the northern territorial waters of in water depths ranging from 10 metres up to 70 metres.
The signing was attended by Mohamed Bin Khalifa Al Khalifa, Minister of Oil of Bahrain and Chairman of the board of NOGA and Claudio Descalzi, Chief Executive Officer of Eni.
“Thanks to this agreement, Eni strengthens its presence in Bahrain, in line with its strategy aimed at diversifying its exploration portfolio across basins with liquid hydrocarbon potential, as those present in this Middle East region,” said Eni.
The signing comes as Bahrain's first LNG import terminal, near Khalifa Bin Salman Port, is set for its commercial start-up.
The LNG facility comprises a floating storage unit (FSU) and a regasification platform.
Bahrain has already taken over the charter of the FSU called “Bahrain Spirit” on a 20-year deal from shipping company Teekay LNG, a shareholder in the project.
The Bahrain LNG ownership consortium comprises four companies, including NOGA, Teekay LNG, South Korea’s Samsung C&T and the Gulf Investment Corp.