Egypt has awarded US$47 million worth of three new contracts in oil and natural gas exploration and signature bonuses worth US$23 million that will see the country drill 10 new wells.
The new oil and gas contracts were awarded to Tunisia’s HBS and France’s Total to explore hydrocarbons in Nile Delta and Western Desert.
Egyptian petroleum minister Eng. Sherif Ismail announced that the move was aimed at increasing investments with the ministry having signed 53 new agreements to explore oil and gas (worth US$2.9m) and signature bonuses worth US$ 431.8 to drill additional 228 wells since November 2013.
Political instability in 2011 saw the country experience a fall in foreign investments and the country is encouraging foreign energy firms to invest in local hydrocarbon sector. The government also paid US$2.1 billion as part of US$3 billion dues owed to foreign oil companies in 2014 to firms such as BG Group, Dana Gas and Circle Oil as part of $3 billion dues owed to foreign oil companies in 2014.
Egyptian Natural Gas Holding Company (EGAS) CEO Eng. Khaled Abdel Baidea and Egyptian General Petroleum Corporation( EGPC) Eng. Tariq Al- Mulla signed the agreements with HBS and Total.
The Egyptian government is trying to source for LNP from various sources to cater for the growing demand as the local consumption has exceeded production in recent years.