Eni SpA signed a production sharing contract with Albania's Ministry of Infrastructure and Energy to explore the onshore Dumre block.
The block covers 587 square kilometers located about 40 kilometers south of Tirana in an area with "good oil prospectivity," according to a Dec. 20 news release from the company.
Eni, which has committed to drill an exploration well, was awarded the block following a bid in September. It will hold a 100% stake in the block.
The deal marks the return of the company to Albania after it left in 1999.