Edison, an international energy company based in Italy, said on Tuesday that it had signed a $1.4bn contract to explore and develop Egypt’s Abu Qir offshore oil and gas fields.

Edison, which is majority-owned by France’s EDF and has been operating in Egypt since 1995, said it was also committed to invest $1.7bn to develop the field’s reserves. The concession has a 20-year term that can be extended for a further 10 years.