Under the terms of the deal, the gas extracted by Eni in Angola will be supplied to Angola domestic market and to support the local economy.
The partners plan to assess the development of gas fields in the Angolan basin of the Lower Congo. The produced gas will be used to generate up to 1.5GW of electricity for the southern African nation.
As part of downstream activities, the two firms also agreed to collaborate on defining the Lobito refinery, which is planned to be developed in the coming months.
The refinery was initially scheduled for completion by 2011 but financing setbacks and high costs delayed the plan, reported Reuters.
For the projects, Eni will utilize its experience and technical expertise in the discovery, development and production of gas resources.
In order to boost employment and promote diversification of the economy in the country, the company plans to provide support for the outline of an agricultural project.
Eni CEO Claudio Descalzi said: "We are accelerating organic growth in upstream and supporting local communities through projects that provide access to energy, develop downstream facilities and produce economic diversification."
In 2014, Eni and Sonangol agreed to cooperate in activities and joint projects in the oil and gas sector to develop in the country.
As per the deal, a joint venture will be launched by the firms to study the potential of the non-associated gas present in the Lower Congo Basin, which is considered to be a highly promising area in terms of hydrocarbon production located offshore Angola.
Production of Eni in Angola currently amounts to 105,000 barrels of oil equivalent per day.
