Reuters: Egypt near agreement with Italy's Eni over revised gas prices

Egypt is near an agreement with Italian oil major Eni to offer the company a more competitive price for the natural gas it extracts in the energy-short country, an Egyptian official told Reuters on Monday.

Mahfouz El-Bony, vice chairman for agreement and exploration at state-owned gas company EGAS, did not say what the new price would be or when the deal would be finalised. But he said the existing price of $2.65 per million British thermal units (mmBtu) was "not economically feasible" for companies.

"The price ... is not becoming competitive for investors to develop as the cost of drilling and the development plans is all increasing", he said, suggesting that the government may pay a higher price.

Bony, who was speaking on the sidelines of an energy event in Abu Dhabi, said the talks were related to Eni's offshore Mediterranean concession.
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