Edison SpA (EDN.MI), one of Italy's largest energy companies, said Tuesday it won the tender for Egypt's Abu Qir natural gas field in a deal worth $3.1 billion, allowing it to reach its gas supply targets.
In a statement, Edison said it will pay Egyptian General Petroleum Corp. a bonus of $1.41 billion for the exploration, production and development of the offshore Abu Qir field.
The Milan-based company said it estimates necessary investments at about $1.7 billion.
"With this important contract, Edison will meet its medium-term target of covering 15% of Edison Group's gas needs through its own production," said Chief Executive Umberto Quadrino in the statement.
The CEO added the field will allow the company to increase its own hydrocarbon reserves significantly by adding 27 billion cubic meters of gas equivalent of proven and probable reserves to the current 33 billion.