Global energy companies secure oil and gas exploration agreements worth $340 million with Egypt
Egypt's Minister of Petroleum and Mineral Resources has announced a series of significant agreements with five international energy companies, aiming to boost the country's natural gas production and maintain its status as a regional exporter.
The deals, worth over $340 million, involve Shell, Eni, Zarubezhneft, Arcius Energy, and the Egyptian Natural Gas Holding Company (EGAS). Arcius Energy, a joint venture between Britain's BP and the United Arab Emirates' ADNOC, secured a $109 million contract to operate in the North Damietta offshore area.
Eni signed a $100 million agreement to develop three wells in the East Port Said offshore block, while the largest deal, valued at $120 million, was with Shell for drilling three wells in the Mediterranean's Merneith offshore area. Russia's Zarubezhneft signed a $14 million deal to drill four wells in the onshore North El-Khatatba block in the Nile Delta.
The agreements allow for the drilling of 10 wells across offshore and onshore blocks. However, the specific type of energy resources that will be explored remains undisclosed.
These new deals come at a time when Egypt's natural gas production has seen a significant drop. According to the Joint Organisations Data Initiative (JODI), Egypt's natural gas production in May 2022 decreased by over 40% compared to March 2021. The government aims to stabilise and eventually increase production to meet domestic needs and attract fresh investment.
Turkey's Energy Minister Bayraktar is reportedly considering a new long-term LNG deal with the US, but this is not related to the agreements mentioned in this article.
The Petroleum Ministry announced these agreements on Saturday, marking a significant step in Egypt's ongoing efforts to secure its energy future and maintain its role as a key player in the regional energy market. The two new wells in the West Delta concession recently came online, adding 60 million cubic feet of gas per day to Egypt's output.
As Egypt continues to forge partnerships with international energy companies, it remains committed to sustainable and responsible energy practices, ensuring a bright future for the country and its people.
