Egypt secures new oil and gas exploration contracts worth $340m

Egypt has entered into four oil and gas exploration agreements with international companies valued at more than $340m (E£16.52bn), aiming to bolster domestic production in the face of growing energy demand.

The agreements, disclosed by the Petroleum Ministry on 30 August, encompass offshore blocks in the Mediterranean and Nile Delta.

These contracts include a commitment to drill ten new wells and were secured by the state-owned Egyptian Natural Gas Holding Company (EGAS).

Shell International has entered into the largest agreement, valued at $120m (£88.7m), for exploration in the Mediterranean's Merneith offshore area. The agreement includes plans for three wells.

The second agreement is with Italian energy company Eni, which has pledged $100m (€85.31m) for drilling three wells in the East Port Said offshore block.

Russia’s Zarubezhneft signed the third agreement, valued at $14m (Rbs1.13bn), which is set to focus on the North Khatatba concession in the Nile Delta, with four wells scheduled to be drilled.

In addition, Arcius Energy, a joint venture between BP and XRG, the investment arm of the United Arab Emirates' ADNOC, has committed to invest $109m in the North Damietta offshore area.

These investments come at a critical time as Egypt grapples with declining gas field supplies and a surge in electricity consumption, compounded by regional tensions impacting the energy sector.

The Ministry of Petroleum has announced that the contracts are a component of a larger strategy aimed at enhancing exploration efforts, ensuring a stable domestic supply and strengthening Egypt's position as a key energy hub in the region.

Concurrently, Egypt secured a series of agreements in June to procure between 150 and 160 cargoes of liquefied natural gas (LNG) through 2026, a move aimed at meeting the country's rising power requirements amid economic challenges.

These LNG agreements with global energy companies and trading houses are expected to cost Egypt more than $8bn at present market rates.

"Egypt secures new oil and gas exploration contracts worth $340m" was originally created and published by Offshore Technology, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

View Comments