Italian utility Enel SpA (ENEL.MI) and France's Total SA (TOT) have been awarded a hydrocarbon exploration license in offshore Egypt, Enel said Wednesday.
Enel, which aims to boost its fossil fuel supplies, said in a statement that it will hold 10% of the license for the El Burullus bloc, in an area of 2,516 square kilometers, off the Nile Delta. Total, the main operator of the bloc, will hold 90%.
The license was awarded by Egyptian Natural Gas Holding Co., or EGAS.
The license will last four years and allow for three-dimension seismic tests and drilling of wells.
The deal is part of Enel's strategy of to gain direct access to its supplies, it said.
In April 2008, Enel it signed a cooperation agreement with EGAS that will give it access to Egyptian gas. The agreement allows Enel to enter Egypt's upstream market, targeting the growing liquefied natural gas sector.
Enel also said Wednesday that it aims to strengthen its cooperation with EGAS.