Egypt has raised the prices it pays Eni and Edison for the natural gas they produce in the country, an official with state-owned gas company EGAS said on Sunday.
The agreements mark the latest move by Egyptian authorities to improve terms for foreign oil and gas businesses in the hope that more competitive pricing will encourage investment in the energy-hungry country.
“The Oil Ministry signed a deal that amended the price for gas with Eni to a maximum $5.88 for every million British thermal unit and a minimum of $4, based on amounts produced. This is up from $2.65,” the EGAS official told Reuters on condition of anonymity.
The official said that another deal had been signed with Edison for a price of $5.88 per million British thermal units, up from $2.65.
The companies could not immediately be reached for comment.
The amended prices will apply to gas produced from new discoveries, the official said.
Egypt last month signed a $2 billion exploration deal with Eni.
Oil minister Sherif Ismail said in March that Egypt had agreed to pay BP and RWE Dea more for their Egyptian production.