Egypt Awards Three Exploration Concessions

Egypt signed three exploration deals worth a total of approximately $91.5 million to drill 12 new wells, the Egyptian oil ministry said in a statement on Wednesday.

Two petroleum exploration and exploitation agreements were with BP. One is in a 12,500 square km (4,827 sq mile) area in the north of the Red Sea, with commitments to spend at least $59 million. BP will drill two new exploratory wells.

BP's second deal was for a 545 square km area in the Gulf of Suez, with commitments for at least $16.5 million investment and to drill three additional wells.

The third agreement was in the Western Desert with a joint venture of INA and RWE for 1,358 square km with commitments for outlay of $16 million and 7 extra wells.

Egypt has proven gas reserves of 62 trillion cu feet and, alongside a gas export pipeline to Jordan that opened in July last year, international firms are building two liquefied natural gas (LNG) plants for export on the Mediterranean coast.