Egypt signed on Sunday an agreement for UK Petroleum giant British Petroleum (BP) and UAE investment fund Mubadala to buy a 45 percent stake in the country's Noor offshore natural gas concesion in the Mediterannean from Italy’s Eni.

In an official statement, Egypt’s petroleum ministry said the agreement provides BP and Mubadala with 25 percent and 20 percent respectively from Eni’s 85 percent stake in the Noor offshore concession.

Eni now owns 40 percent interest, and Tharwa Petroleum owns the remaining 15 percent.

Following the signing ceremony, Egyptian Petroleum Minister Tarek El-Molla said  that the numerous international companies operating in the area reflects confidence in the petroleum and gas investment climate in Egypt.

According to the statement, drilling has already started in the concession area, which is located 50 kilometres off the North Sinai coast in the Mediterranean .

The concession area covers 739 sqm with investments worth at least $105 million for the drilling of the two wells.