The Egyptian Natural Gas Holding Company (EGAS) has signed a preliminary agreement with BP to drill five new gas wells in the Mediterranean Sea, Egypt’s Petroleum Ministry said yesterday.
The memorandum of understanding signed by state-owned EGAS comes 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 gas demand as output declines from aging fields and investment lags in new ones.
Gas production in May was 3,545 million cubic metres, down more than 40 per cent from March 2021, according to the Joint Organisations Data Initiative.
Drilling of the five wells, at depths of 300 m to 1,500 m, is expected to start next year, the statement added.
On August 30, the Petroleum Ministry announced the signing of four deals with international firms worth more than $340m to explore for oil and gas in the Mediterranean and Nile Delta.
The firms included Shell, Italy’s Eni, and Arcius Energy, a joint venture 51pc owned by BP and 49pc by ADNOC’s investment arm XRG.
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