Bahrain's National Oil and Gas Authority (Noga) and Italy's Eni have signed a memorandum of understanding (MoU) on pursuing petroleum exploration of Block 1 in the northern territorial water of Bahrain with a depth ranging from 10 m up to 70 m.
Block 1 is an offshore area of over 2,800 sq km, said a Bahrain News Agency report. Eni is an Italian energy company primarily operating in petroleum, natural gas, and petrochemicals.
The memo was concluded by Shaikh Mohammed bin Khalifa AlKhalifa, Minister of Oil, and Eni’s chief executive Claudio Descalzi, in the presence of a number of officials from Noga, the oil and gas holding company (Noga holding), Tatweer Petroleum – Bahrain Field Development Company and a number of executives from the oil and gas industry.
The oil minister told the press, on the sidelines of the MoU signing ceremony, that Eni will initiate drilling for the first oil exploratory well in Block No. 1 during the current year, after getting the approval of the Higher Committee for Natural Resources, Cabinet, Shura and Representatives councils.
Shaikh Mohammed said the strategic partnership with Eni is a major positive step towards utilizing the kingdom’s offshore natural resources and that with this signing, the aim is to hold various discussions to review all relevant aspects of the technical and commercial terms of the potential exploration and development within a reduced timeframe.
Descalzi hailed the MoU and the opportunity to explore the potential of Block 1 which will allow Eni to start cooperating and investing in a country that was one of the first in the Gulf to produce oil and which now aims at unveiling its offshore potential.
Entering in Bahrain will enable Eni to expand its presence in a key region of the Middle East, in line with Eni’s strategy aimed at diversifying its exploration portfolio across basins with liquid hydrocarbon potential.
Shaikh Mohammed said Noga would finalize the terms of the concession contract to be signed with Eni in a few weeks.
The minister expressed optimism about exploring more oil and gas resources in the northern maritime bloc, hoping the Italian company would accomplish more successes in the northern maritime bloc as it has closely working with Bahrain during the past few years on studying the same bloc.
He said the National Oil and Gas Authority, in cooperation with Petroleum Development Company (Tatweer), would conduct studies on more oil and energy discoveries in the next few years.
