Egypt firms to partner Eni in Iraq, Gabon

MILAN (Reuters) - Italy's Eni (ENI.MI) said it would join forces with Egypt's national oil and gas companies in developments in Iraq and Gabon, strengthening ties with the country in which it is the biggest foreign energy player.

In an emailed statement on Tuesday, Eni said the two companies -- EGPC and EGAS -- would participate in Eni's oil and gas upstream activities outside Egypt, including development of oil fields in Iraq and Gabon.

In return, Egypt's petroleum ministry will seek to secure rights for Eni to acquire gas transportation capacity in the Arab Gas Pipeline system, the statement said.

Egypt currently transports gas through the Arab Gas Pipeline system to Jordan, Syria and Lebanon. It could be expanded to connect with other gas pipeline systems in the future, the statement said.

The steps "will form the foundation for developing a pre-eminent Mediterranean gas hub in Egypt," the statement said.

Eni's equity production averaged 230,000 barrels of oil equivalent per day (boepd) in Egypt in 2009.

Last week, Egypt signed a groundbreaking $9 billion deal with foreign energy companies BP (BP.L) and RWE Dea (RWEG.DE) to develop five offshore gas fields to help it meet growing domestic and foreign gas commitments.

In Iraq, Eni and partners have a deal to develop the Zubair field with investments of over $20 billion.

Eni's interests in Gabon are part of its sub-Saharan Africa portfolio, which also includes activities in Nigeria, Congo Republic, Angola and Mozambique, producing 450,000 boepd.

(Reporting by Jo Winterbottom; Editing by Lisa Shumaker)