The Egyptian Petroleum Ministry announced on Saturday 30 August that Egypt has concluded four oil and gas exploration deals with global companies worth over USD 340 million (EGP 17 billion).
The agreements, signed through the state-owned Egyptian Natural Gas Holding Company (EGAS), include plans to drill 10 wells as part of the government’s strategy to expand exploration and strengthen output.
Once a net exporter of energy, Egypt now depends more heavily on imports to satisfy growing domestic consumption, as production from mature fields declines and new investment struggles to keep pace according to Reuters.
Egypt’s natural gas production fell sharply in May to 3.55 million cubic meters as opposed to 6.13 million cubic meters, more than 40 percent lower than in March 2021, according to figures from the Joint Organisations Data Initiative (JODI).
To counter the decline, the Ministry announced a series of new exploration agreements. Oil major Shell, a british multinational oil and gas company, will invest USD 120 million (EGP 6 billion) to drill three offshore wells in the Mediterranean’s Merneith block, while Italy’s Eni, a multinational energy company, has committed USD 100 million (EGP 5 billion) to sink three wells in the East Port Said concession.
A further USD 109 million (EGP 5.5 billion) agreement was awarded to Arcius Energy, a joint venture between BP, a British multinational oil and gas company, (51 percent) and XRG, an energy investment company focusing on international gas (49 percent), to carry out exploration in the North Damietta offshore area. In addition, Russia’s Zarubezhneft signed a USD 14 million (EGP 700 million) deal to drill four onshore wells in the Nile Delta’s North El-Khatatba block.
These new agreements mark the latest step in Egypt’s efforts to boost exploration and address its changing energy balance.
Comments (0)