Egypt: 12 new oil agreements with investments one billion dollars

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Egypt: 12 new oil agreements with investments one billion dollars in ِEastern, Western Mediterranean, Red Sea, and the Western Desert

Recently he Egyptian Cabinet approved twelve new agreements with a number of major international companies like Chevron, Edison, BP, Total, Shell, Noble, KUFPEC and Mubadala, 8 agreements with “EGAS”, two of them in Nile Delta Mediterranean, 6 in the Western Mediterranean region, 3 agreements with the South Valley Petroleum Holding Company (Ganoub) in the Red Sea and an agreement for the Petroleum Authority in Western Sahara with a minimum investment more than one billion dollars in addition to about 19 million dollars granted the signature of drilling 21 wells, the Egyptian parliament expected to ratify the agreements before the end of The current season.

Also on the 12th of February 2019 during the Egypt Petroleum Show (EGYPS 2019), EGAS announced the results of awarded companies in previous International Bid Round on May 2018 comprising a total of 16 blocks in the Mediterranean Sea.

•    Block 3 (North East El Amriya Offshore) to ExxonMobil
•    Block 4 (North Sidi Gaber Offshore) to BG (Shell) and Petronas
•    Block 6 (North El Fanar Offshore) to BG (Shell) and Petronas
•    Block 10 (East Damanhur Onshore) to DEA Nile GmbH
•    Block 11 (West Sherbean Onshore) to IEOC Production BV (Eni) and BP

By signing the PSAs for the awarded blocks, EGAS will obtain a total of 39 USD million as signature bonuses and companies are to invest a total of 600 USD million (financial commitment) during the different exploration phases (2 phases totaling 6 years for onshore blocks and 3 phases totaling 8 years for offshore blocks).

Offering international auctions and signing new petroleum agreements was the starting of return point and restoring of confidence of partners and new investors to increase petroleum activities by signing 84 new petroleum agreements during the past six years with international companies to search for oil and gas with a minimum investment of about $ 15 billion and signature bonus more than one billion dollars was granted for the drilling of 351 wells.