Italy’s Eni has signed a multitude of agreements in a bid to restart operations at the Egypt-based Damietta liquefaction plant by June this year.
Agreements were signed by Spain’s Naturgy Egypt (ARE); the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS), which will put an end to legal battles of more than five years between EGAS and ARE with Union Fenosa Gas.
The liquefaction plant is owned by SEGAS, which is 40% owned by Eni through Union Fenosa Gas.
Under the agreement, 50% of the plant will be owned by Eni; EGAS will take 40% and 10% will be taken by EGPC. The agreements signed by the parties guarantee that the disputes between Union Fenosa Gas (UFG) and SEGAS with ARE and EGAS and are resolved amicably and Union Fenosa Gas, whose funds will be split between Eni and Naturgy will be restructured afterwards.
“The agreements provide for the amicable resolution of the pending disputes of Union Fenosa Gas and SEGAS with EGAS and ARE, and the subsequent corporate restructuring of Union Fenosa Gas, whose assets will be divided between the shareholders Eni and Naturgy,” Eni said in a statement.
Eni, the largest foreign oil and gas producer in Libya, discovered Egypt’s giant gas field Zohr in 2015 and has a series of other assets in the Mediterranean.