Eni (NYSE: E) said Aug. 14 that a new concession agreement, aimed at governing an offshore exploration license in the prolific East Nile Delta Basin of the Mediterranean Sea, has received approval by Egyptian authorities.

The exploration license, named “Nour”, is located approximately 50 km (31 miles) offshore in the Eastern Mediterranean, in water depth ranging from 50 to 400 m (164 to 1,312 ft), and covers a total area of 739 sq km (285 sq miles). Eni plans to proceed with the drilling of an exploration well in the second half of the 2018.

This new acquisition further strengthens Eni’s position in Egypt, an area of historic and strategic importance for the company.

Nour is operated by Eni through its subsidiary IEOC. In the concession, which is in participation with Egyptian Natural Gas Holding Co. (EGAS), Eni holds an 85% stake in partnership with Tharwa Petroleum Co., which holds a 15% stake.

Also, Eni said that Egyptian Authorities have authorized a new Nile Delta concession agreement allowing a 10-year extension of the Abu Madi West development lease (203 sq km), where the Nooros field is located, and the execution of further exploration activities within El Qar’a exploration lease (64 sq km). These assets are located in the Great Nooros Area, one of the most prolific areas of the Nile Delta, offshore Egypt.

Furthermore, Egyptian Authorities have authorized a five-year extension of the Ras Qattara concession agreement and relevant development lease. Following this extension, a new drilling campaign in the Zarif and Faras fields will unlock remaining hydrocarbon reserves and allow further exploration activities within the Western Desert basin.

The Great Nooros Area’s asset lease extension strengthens Eni’s gas portfolio while confirming the success of Eni’s strategy of near field exploration that has revitalized production in the Nile Delta area, where the Nooros field is currently producing 32 million cubic meters of gas per day, corresponding to about 215,000 barrels of oil equivalent per day. Eni, through its subsidiary IEOC, holds a 75% stake if the concession in partnership with BP (NYSE: BP), which has a 25% stake. The operator of Nile Delta is Petrobel, a joint venture between IEOC and Egyptian General Petroleum Corp. (EGPC).

In the the Ras Qattara concession, which covers an area of 104 sq km (40 sq miles), Eni holds a 75% stake while its partner INA holds a 25% stake. The operator is AGIBA, a joint venture between Eni’s subsidiary IEOC and EGPC. The Ras Qattara extension will reinforce AGIBA oil operated production in the Western Desert area.