Egypt Tries Harder To Stop Energy Firm Exodus

If it is to reverse the decline in gas production and exports, Egypt must ensure it taps these large deepwater finds that are costly to develop and require the expertise and financial clout of multinationals like BP and BG.

"The Nile Delta fields are maturing and that means you have to keep drilling new wells just to stand still," Murphy said.

"And there have not been significant investments in new fields because the investment climate is just not conducive to making decisions on multi-billion dollar projects."

Executives said Egypt had agreed in principle to pay a higher price for gas from offshore wells which, unlike oil, only get developed with an assured market and agreed price.

Murphy said prices upwards of $5 per 1,000 cubic feet had been offered in the past couple of years on the later phases of existing production-sharing contracts for major projects.


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