Egypt has signed four agreements with international firms worth more than $340 million to explore oil and gas in the Mediterranean and Nile Delta, the Petroleum Ministry said yesterday.
The deals, signed by the state-owned Egyptian Natural Gas Holding Company (EGAS), provide for the drilling of 10 wells as part of the ministry’s efforts to boost exploration and production.
Egypt, once a regional exporter, has increasingly turned to imports to meet rising domestic demand as output declines from aging fields and investment lags in new ones.
Gas production in May was 3,545m cubic metres, down more than 40 per cent from March 2021, according to the Joint Organisations Data Initiative (JODI).
The first deal, with oil giant Shell, is worth $120m and covers three wells in the Mediterranean’s Merneith offshore area, the ministry said.
Italy’s Eni signed a $100m agreement to drill three wells in the East Port Said offshore block.
A third agreement, worth $109m, went to Arcius Energy, a joint venture 51pc owned by BP and 49pc by ADNOC’s investment arm XRG, to operate in the North Damietta offshore area.
The ministry also announced a $14m deal with Russia’s Zarubezhneft to drill four wells in the onshore North El-Khatatba block in the Nile Delta.
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