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Petroleum Minister Tarek El Molla (C), shown at EGYPS (Photo: Facebook/@EGYPS - Egypt Petroleum Show)

Egypt signs five oil and gas

agreements worth $40mn

EGYPT EGYPT’S Petroleum Ministry has signed five to explore for oil and gas in the North Sinai con-
new oil and gas exploration and development cession in offshore Mediterranean, committing
agreements with national and international to make an $8mn investment in the drilling of a
companies looking to exploit hydrocarbon new exploration well.
resources in the Western Desert and North Sinai
in the offshore Mediterranean. Under the new Three new bidding rounds
agreements, the companies are to drill 11 new In related news, the Egyptian government is
wells and invest a total of $40mn. looking to capitalise on strong demand for oil
Egyptian General Petroleum Co. (EGPC) and gas from European consumers in the wake
signed an exploration agreement with Egyptian of reduced supply from Russia with a major oil
National Petroleum for Exploration and Devel- and gas exploration drive this year. Specifically,
opment Co. (ENPEDCO) to look for oil and gas the Petroleum Ministry intends to announce
south of Ras Qattara in the Western Desert. The three bidding rounds this year with the aim of
company’s work programme includes drilling drilling more than 300 wells by the year 2025
three exploratory wells, making a $7mn invest- onshore and offshore Egypt in partnership with
ment during the initial exploration periods. international companies, Petroleum Minister
This investment is to be doubled in the event of Tarek El Molla said at the Egypt Petroleum Show
a commercial discovery. (EGYPS) earlier this week.
EGPC also signed a second exploration and The cash-strapped Egyptian government has
development agreement with Kuwait Energy a mountain of debt repayment falling due over
to develop the Burj Al Arab concession area in the next two years. As such, it is in dire need of
the Western Desert. The agreement calls for the foreign exchange revenues that could be derived
company to invest $4mn to drill two wells. from oil and gas exports.
A third agreement was signed between Egypt’s hydrocarbons sector has been a
EGPC and two foreign companies, Energean major generator of foreign exchange, with sector
(UK) and INA (Croatia), with the aim of invest- exports hitting $18.2bn in 2022 on rising reve-
ing $14mn in the drilling of three exploratory nues from LNG exports on the back of elevated
wells in the area east of Bir al-Nuss in the West- global prices.
ern Desert. Last year, the country registered the third
Meanwhile, EGPC signed a fourth agree- consecutive year of a hydrocarbon trade surplus
ment with Italy’s Eni to explore southwest of of more than $3bn. The government wants to
the Meleiha concession in the Western Desert. keep the momentum through the development
The agreement envisions ENI spending $7mn of more oil and gas resources in support of the
to drill two exploration wells. overall trade balance, which remains in chronic
Lastly, EGPC agreed with UK-based Perenco deficit. ™

P6 www. NEWSBASE .com Week 07 16•February•2023