Italy and Egypt are deepening their energy partnership through a mix of oil production boosts and major renewable projects, highlighting Rome’s strategic Mattei Plan for Africa. Announced in late 2025, these moves aim to secure energy supplies while advancing green goals in the Mediterranean region.
Oil Output Surges in Joint Ventures
Italy’s energy giant Eni has driven a sharp rise in oil production through its partnerships with Egyptian firms. In December 2025, the Ajiba Oil Company, a joint venture with the Egyptian General Petroleum Authority, hit a three year high of about 32,000 barrels per day.
This increase comes from smart investments in advanced drilling and seismic tech in Egypt’s Western Desert. New wells in areas like Mleiha, Yasmine, and Iris have played a big role. Experts say these steps not only lift Egypt’s national output but also help stabilize global energy markets amid ongoing supply worries.
The push aligns with broader efforts to tap hydrocarbons efficiently. Egypt launched its largest exploration program in 2025, covering nearly 10 percent of its land for oil and gas. This fits into Cairo’s goal to become a key energy hub, with Italy as a main partner.
Renewables Take Center Stage with Solar Megaproject
Shifting to clean energy, Italy’s Cassa Depositi e Prestiti has committed 110 million euros to fund a massive solar plant in Aswan. This 1,000 megawatt facility, complete with 600 megawatt hours of battery storage, stands as Africa’s largest photovoltaic project.
Set to cut over one million tonnes of CO2 emissions yearly, the plant will bolster Egypt’s power grid stability. Construction ties directly to the Mattei Plan, which promotes sustainable growth in Africa through Italian support.
This renewable focus complements fossil fuel work, avoiding a direct trade off. Recent deals, like Eni’s biogas agreement with Egypt’s environment ministry, show a balanced approach. The solar initiative also draws in global players, such as partnerships with the European Bank for Reconstruction and Development for green tech in farming.
Mattei Plan Drives Broader Strategy
Named after Enrico Mattei, the plan revives Italy’s historic ties with Africa for mutual benefit. Launched by Prime Minister Giorgia Meloni’s government, it targets energy, agriculture, and infrastructure to position Italy as Europe’s gateway to the continent.
In Egypt, the plan gains real traction. Beyond energy, it includes pilots for sustainable farming with a 5 million euro boost for small businesses. These efforts aim to diversify economies and reduce migration pressures by creating local jobs.
Analysts note the geopolitical angle. With complex dynamics in Africa, Italy seeks to counter influences from other powers. Success in Egypt could inspire similar pacts, like Angola’s 2025 entry into the Mattei Plan for non oil growth.
- Key benefits of the Mattei Plan in Egypt include enhanced energy security, job creation in green sectors, and reduced reliance on imports.
- It fosters technology transfer, helping local firms adopt advanced methods in both oil and renewables.
Economic and Environmental Impacts
The dual track approach promises strong economic gains. Egypt’s energy sector could see billions in investments, supporting its clean transition while maintaining hydrocarbon revenues.
Environmentally, projects like the Aswan solar plant address climate goals. Egypt aims for 42 percent renewable energy by 2030, and Italian backing speeds this up. Logical reasoning suggests this mix prevents short term shortages during the shift to green power.
Recent events, such as the UK firm Terra’s 2025 exploration deal in Egypt, highlight growing international interest. Italy’s role stands out for its integrated strategy, blending immediate needs with long term sustainability.
| Aspect | Hydrocarbons Track | Renewables Track |
|---|---|---|
| Key Project | Ajiba Oil Company production boost | Aswan 1,000 MW solar plant |
| Investment | Advanced drilling tech | 110 million euros from CDP |
| Output | 32,000 barrels per day | 600 MWh storage, 1M+ tonnes CO2 saved yearly |
| Timeline | Peaked in December 2025 | Under Mattei Plan, construction starting 2026 |
| Broader Goal | Energy security | Green transition and grid stability |
Challenges and Future Outlook
No partnership is without hurdles. Geopolitical risks in Africa could slow progress, as seen in past initiatives that fell short. Egypt faces its own issues, like water scarcity affecting projects in Aswan.
Yet, the momentum looks positive. With Italy’s push, Egypt solidifies its hub status. Future steps might include more biogas and hydrogen ventures, building on 2025 agreements.
This balanced strategy not only aids both nations but sets a model for Europe Africa ties. As global energy demands evolve, such collaborations could shape the Mediterranean’s future.
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