Egypt to undertake construction of a US$900 million deep water drilling rig

deepwater oil rig
Deepwater drilling rig in the Gulf of Mexico.

The Ministry of Petroleum has announced the construction of US$900 million deep water drilling rig in collaboration with Egyptian Natural Gas Holding Company (EGAS), Toyota Tsusho, Japan Drilling Company and Ganoub El-Wadi Petroleum Holding Company (Ganope).
The project aims at securing the development of the drilling and maritime exploration programmes by capitalizing and developing the reserves of the oil and gas sectors.

In March, Sherif Ismail, Minister of Petroleum, signed three separate deals worth US$717 million with both Canadian and British firms allowing them to explore natural gas and oil in the Delta and Mediterranean areas.

According to BG Group plc, a British multinational oil and gas company, the production of oil and gas has dropped to 35% in the first quarter to 66,000 barrels of oil equivalent a day as from three previous months because of the diversion of fuel to the domestic market and the worsening reservoir production affecting total output for 2014 by lowering its end of year forecast of 590,000 to 630,000 barrels a day.

Ministry of Petroleum since November has signed 29 contracts totaling US$2 billion deals in the exploration of oil and gas reserves.

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