Gov’t approves deal to explore gas off the coast of northern Sinai

CAIRO – 9 May 2018: The government approved on Wednesday an exploration agreement to search for oil and gas in the Mediterranean off the coast of northern Sinai, Petroleum Minister Tarek el-Molla said on Wednesday.

He said the agreement involves Italian energy company Eni and the Egyptian Tharwa company. Both companies will spend $105 million in two stages over six years to drill a well in the first phase and another one in the second, Molla said.

Eni announced last week a new oil discovery in Egypt's western desert. The oil discovery is on the A-2X exploration prospect located in the South West Meleiha license, in the Egyptian Western Desert, some 103 km North of the oasis of Siwa.

The well is the first one drilled by Eni to explore the deep geological sequences of the Faghur Basin.