SEATTLE (Oil Monster): The Egyptian Natural Gas Holding Company (EGAS) has signed key oil and gas exploration deals with international companies, as part of its efforts to boost domestic production.
The deals announced by the country’s Petroleum Ministry are worth nearly $340 million. The four deals cover offshore blocks in the Mediterranean and the Nile Delta region. As part of the deal, a total of 10 new wells will be drilled, said the state-owned company.
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The largest agreement was the one signed with Shell International, valued at $120 million. The agreement covers exploration on the Merneith offshore area of the Mediterranean, including drilling three wells. Italian energy major Eni will invest $100 million towards drilling of three exploration wells in the East Port Said offshore block.
EGAS entered into a $14 million agreement with Russia’s Zarubezhneft to drill four wells in the North Khatatba concession in the Nile Delta. Additionally, Arcius Energy — a joint venture between British Petroleum (BP) and XRG will make an investment of $109 million in the North Damietta offshore area.
According to Egyptian Petroleum Ministry, the new agreements are part of a broader strategy to expand exploration, secure domestic supply, and reinforce Egypt’s role as a regional energy hub. It must be noted that Egypt has been witnessing sharp fall in supplies from its gas fields.
