$155 Million Drilling Investments, Egypt

Egypt signed Wednesday four new agreements to search for oil and gas in the regions of Western Sahara, the Gulf of Suez and the Nile Valley, with a minimum investment of $155 million, and signature grants of about $10.5 million, including drilling 30 wells.

Minister of Petroleum and Mineral Resources Tarek el-Molla emphasized the importance of signing new petroleum agreements as the main pillar and cornerstone for various petroleum activities that are based on research, exploration, development and production.

“The oil sector contributes to strengthening and maximizing the reserves and production of Egypt’s oil and gas, so that the oil sector continues as one of the important tributaries to attracting foreign investments and supporting the national economy,” Molla added in a statement.

He stated that the first agreement is related to the southeastern Siwa concession area in the Western Desert, signed between the Egyptian General Petroleum Corporation and IOC company with a minimum investment of about $17 million and a signature grant of about $1.2 million to drill four new wells.

Meanwhile, the second agreement is about the West Razak Development Concession Area in the Western Desert, and is signed between the Egyptian General Petroleum Corporation and IOC Company with minimum investment of about $34 million and a signature grant of 5 million to drill 13 new wells.

Molla continued that the third agreement is about the North Beni Suef concession area in the Nile Valley region, and is signed between the Egyptian General Petroleum Corporation and Merlon Fayoum Company, with a minimum investment of about $36 million and a signature grant of $2.3 million to drill 8 new wells.