MILAN, Italy, April 20 (UPI) -- Italian energy company Eni said Monday its oil production in the Western Desert of Egypt has reached a record level, doubling its rate in just three years.
Eni said it's producing around 70,000 barrels of oil per day in the region. The company said that's twice the rate from three years ago and comes in large part from the Melehia development west of Alexandria, which is producing about 54,000 bpd.
"In January this year, Eni signed a new concession agreement to operate in the Melehia southwest block, where exploration activities on the same deep plays will start within the year," the company said in a statement. "Eni deems this concession a key element for the sustainability of future production growth in the Egyptian Western Desert."
Eni in January signed two new agreements in the deep waters of the Mediterranean Sea following an auction held by the Egyptian government in 2013.
Political and economic instability in Egypt in the wake of the Arab Spring movements left the government in debt to energy companies eager to tap the country's reserve potential. In March, Eni Chief Executive Officer Claudio Descalzi signed a $5 billion framework investment agreement during an economic summit in Sharm el-Sheik.
U.S. Secretary of State John Kerry said from the conference confidence in post-revolution Egypt was reinvigorated.
