Egypt signs 4 oil, gas agreements with investments of $155M

CAIRO - 26 December 2019: Egypt signed Wednesday four new agreements to search for oil and gas in the regions of Western Sahara, the Gulf of Suez and the Nile Valley, with a minimum investment of $155 million, and signature grants of about $10.5 million, including drilling 30 wells.

Minister of Petroleum and Mineral Resources Tarek el-Molla emphasized the importance of signing new petroleum agreements as the main pillar and cornerstone for various petroleum activities that are based on research, exploration, development and production.

“The oil sector contributes to strengthening and maximizing the reserves and production of Egypt's oil and gas, so that the oil sector continues as one of the important tributaries to attracting foreign investments and supporting the national economy,” Molla added in a statement.

He stated that the first agreement is related to the southeastern Siwa concession area in the Western Desert, signed between the Egyptian General Petroleum Corporation and IOC company with a minimum investment of about $17 million and a signature grant of about $1.2 million to drill four new wells.

Meanwhile, the second agreement is about the West Razak Development Concession Area in the Western Desert, and is signed between the Egyptian General Petroleum Corporation and IOC Company with minimum investment of about $34 million and a signature grant of 5 million to drill 13 new wells.

Molla continued that the third agreement is about the North Beni Suef concession area in the Nile Valley region, and is signed between the Egyptian General Petroleum Corporation and Merlon Fayoum Company, with a minimum investment of about $36 million and a signature grant of $2.3 million to drill 8 new wells.

Additionally, the fourth agreement is related to the southeastern concession area of Ras Al-Ush in the Gulf of Suez and is signed between the Egyptian South Petroleum Holding Company and companies of Pacific and ZNB with a minimum investment of about $68 million and a signature of $ 2 million to drill five new wells, according to Molla.

The petroleum minister pointed out that President Abdel Fatah al-Sisi demanded during their last meeting to continue expanding research and exploration plans with the aim of achieving the optimum economic benefit from all potentials and natural resources, which is what the ministry’s plans and work programs seek during the coming period by offering new global auctions and concluding more agreements.

In October, Chairman of the General Petroleum Authority Abed Ezz confirmed that 60 new discoveries have been made during the last fiscal year in the field of oil and gas.

Numbers about natural gas activities in Egypt

CAIRO - 24 September 2019: Egypt has put a number of gas fields on the map of production during the last period, which was reflected on the rates of gas production in September to hit 7.2 billion cubic feet per day.