Egypt Signs Six New Oil And Gas Exploration Deals

Egypt Signs Six New Oil And Gas Exploration Deals
Egypt signs six new oil and gas exploration contracts worth hundreds of millions of dollars with foreign and Egyptian companies, the oil ministry says.

Reuters

CAIRO, Jan 9 (Reuters) - Egypt has signed six new oil and gas exploration contracts worth hundreds of millions of dollars with foreign and Egyptian companies, the oil ministry said on Friday.

The agreements provide for the drilling of some 41 discovery wells in the western desert and Gulf of Suez, the ministry said in a statement via the official news agency.

Among the major companies selected are Shell, ENI , BP and Canada's TransGlobe Energy.

Egypt has been struggling with soaring energy bills caused by the high subsidies it provides on fuel for its population of 87 million. The subsidies have turned the country from a net energy exporter into a net importer over the last few years.

The government is keen to develop untapped finds to reduce its reliance on imports but has struggled to persuade companies to invest in the biggest finds, which are offshore, because the amount it pays them barely covers the investment costs.

Economic turmoil has also caused the government to fall into arrears to existing producers. The oil ministry said last month Egypt had repaid $2.1 billion of its debt to foreign energy firms as it seeks to restore confidence and encourage investment. It still owes $3.1 billion.

(Reporting by Mostafa Hashem; Editing by Elaine Hardcastle)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
EH&S Compliance Coordinator
Expertise: Environmental Engineer|Regulatory Compliance
Location: Houston
 
Logistics Analyst I (Road) - Direct Hire
Expertise: Logistics Management
Location: Houston, TX
 
Logistics Analyst II (Road) - Direct Hire
Expertise: Logistics Management
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours