BP Signs Suez Gulf Exploration Deal With Egypt

Egypt's Ministry of Petroleum said it had signed two agreements with BP for petroleum exploration and production in the Gulf of Suez.

In a statement, the ministry said the first agreement is for petroleum exploration over a 1,174 square kilometer block of the Northern Shedwan area in the Gulf of Suez. BP has agreed to spend a minimum of $20 million and will dig four wells over a nine-year period.

A spokesman for BP in London wasn't able to comment immediately.

The second agreement is for an amendment to the natural gas pricing system connected to BP's offshore concession of East Tanka in the Gulf of Suez.

Egypt's Minister of Petroleum, Sameh Fahmy, said the amendment is a safeguard for Egypt from extreme fluctuations in global oil prices, but didn't elaborate.