Egypt has signed on Thursday 3 oil and gas exploration agreements with UAE Dana Gas PJSC, Dublin-based Petroceltic International Plc, and Milan-based Edison S.p.A, the country’s petroleum minister Eng. Sherif Ismail announced.
The Minister noted that the state-owned Egyptian Natural Gas Holding Company (EGAS) signed 3 oil and gas exploration agreements on Thursday to drill 8 new wells, brining in investments totaled at least US$ 265 million alongside signature grants at value of US$ 32.2 million.
As pursuant to the 3 oil and gas exploration agreements, Ismail said Dana Gas, Petroceltic and Edison are due to carry out energy exploration works in 3 areas; in south of Al-Theka area and south of El-Arish of the Mediterranean Sea as well as in south of Edko area of the Nile Delta.
Moreover, the Egyptian Minister asserted that his ministry is determined to raise Egypt’s crude oil and gas production rates so as to meet the growing domestic demand.
For the agreements, the minister explained that Egypt signed two deals with Petroceltic and Edison. The first agreement stipulates that the exploration works shall be in south of Al-Theka area, with investments of at least US$ 170 million and a signature grant worth US$ 7.1 million to drill 2 wells. For second agreement, exploration works shall locate in south of Edko area in the Nile Delta, with investments amounting to at least US$ 23.5 million and a signature grant worth US$ 5.1 million to drill 3 wells.
Furthermore, the third agreement was signed with Dana Gas to implement exploration works in the south of El-Arish, with investments of at least US$ 71.5 million and a signature grant of US$ 20 million to drill 3 wells.
Exploration companies have been hesitant to develop untapped gas finds in Egyptian waters partly because the amount the government pays them barely covers their investment costs.
Egypt has been struggling with soaring energy bills caused by high subsidies it provides on fuel for its population of 85 million. The subsidies have turned the country from a net energy exporter into a net importer over the last few years.
Egypt has started repaying some of its debt to foreign oil companies, which had reached more than $6 billion this year.
