Egypt has signed a new offshore exploration agreement with European energy majors Eni and BP, the Egyptian Ministry of Petroleum and Mineral Resources announced Thursday, as Cairo looks to expand natural gas production in the Mediterranean Sea. 

What happened: The deal was signed in New Alamein between the state-run Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company, Italian energy giant Eni and the UK's BP. 

The deal allows BP and Eni to "start exploration activities in the Mediterranean," according to a statement from the ministry. The statement did not specify where or when this exploration will take place.

Signatories included EGPC CEO Salah Abdel Karim, EGAS Chairman Yassin Mohamed, General Manager of Eni in Egypt Francesco Gaspari and Regional Vice President of BP in Egypt Wael Shaheen. 

The signing was witnessed by Petroleum Minister Karim Badawi and Eni President for North Africa and the Levant Region Martina Opizzi. 

The agreement includes plans to drill an exploratory well in Egypt’s Lake Timsah area in the coming months. The area lies along a fault line that extends from the Mediterranean Sea to the Gulf of Suez and is believed to hold significant natural gas.