Egypt makes $340m oil & gas investment to boost production
Egypt’s Ministry of Petroleum and Mineral Resources has signed investment deals with Shell Egypt, Petronus Gas and Cheiron Energy totalling $340m.
The deals, designed to enhance the north African nation’s oil and gas production in the Mediterranean and Gulf of Suez, were signed on Sunday, according to US media reports. Egypt’s Petroleum Minister, Karim Badawi, met with senior executives from Shell Egypt, Petronus Gas and Cheiron Energy to finalise two agreements.
The first agreement signed was an approximate $222m investment deal with Shell Egypt and Malaysia’s oil and gas giant Petronas. The investment is a part of the tenth phase of the West Delta Deep Mining Project.
The deal includes the drilling of three wells and the establishment of marine facilities, all of which are expected to increase oil and gas production and recoverable reserves.
A second $120m deal with Cheiron Energy was finalised on Sunday. The deal includes the drilling of nine new wells including three new exploration wells. The investment is expected to eventually increase oil and gas production in the Gulf of Suez from 21,000 barrels per day (bpd) to 26,000bpd.
Badawi has been vocal about his plans to increase the overall production of oil and gas in the country. The minister has prioritised a focus on research and exploration to expand oil reserves, increase production capacity and develop the necessary infrastructure to reduce production costs.
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By GlobalData
The investment is to help expand on new and existing oil reserves – through advanced technologies – to increase production and improve the economic viability of Egypt’s oil and gas industry.
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