Egypt signs $340 million oil and gas exploration deal with global firms
The Petroleum Ministry announced on Saturday that Egypt had signed four agreements worth $340 million with international companies to explore for oil and gas along the Mediterranean and Nile Delta.
The state-owned Egyptian Natural Gas Holding Company, or EGAS, has signed a deal that will see 10 wells drilled as part of efforts by the Ministry to increase exploration and production.
Egypt, a once-prominent regional exporter, is increasingly importing to meet the rising demand at home, as production from old fields declines and investment in new ones lags.
According to the Joint Organisations Data Initiative, gas production in May decreased by more than 40% compared to March 2021.
The ministry announced that the first deal with Shell is worth $120 millions and covers three offshore wells at Merneith in the Mediterranean.
Eni, an Italian company, signed a $100-million agreement to drill 3 wells on the East Port Said offshore bloc.
A third agreement worth $109m was signed with Arcius Energy. This joint venture, 51% owned and operated by BP, and 49% by ADNOC’s investment arm XRG. It will operate in North Damietta offshore.
The ministry announced another $14 million deal to drill four oil wells on the North El-Khatatba Block in the Nile Delta.
(source: Reuters)
