Big Oil such as Shell, Eni, Chevron and other international oil firms have secured exploration rights in Egypt after the country’s state run Egyptian Natural Gas Holding Company (EGAS) awarded six oil and gas blocks in the Mediterranean Sea, Nile Delta and North Sin
The contracts, disclosed in a statement by Egypt’s Ministry of Petroleum on Wednesday, are part of a wider effort by the government to boost energy exploration and raise output to meet domestic demand and secure export revenues.
According to the ministry, the awarded blocks include four in the Mediterranean, one in the Nile Delta, and one in North Sinai.
The deals are expected to bring in $245 million in investment during the exploration phase and will see the drilling of a minimum of 13 exploratory wells.
Chevron and Shell secure key offshore blocks
A consortium of Chevron Egypt and Shell’s BG Group won the rights to the North Samian and Northwest Atoll offshore blocks. The firms are expected to drill two exploratory wells in each of the awarded locations.
Chevron also secured the East Alexandria offshore block independently and plans to drill three exploratory wells there.
Meanwhile, Eni’s local subsidiary, IEOC, was awarded the North Ras El Tin She’ll block and is set to drill three wells.
“These contracts mark an important step in our continuous strategy to attract global energy leaders and increase our offshore exploration activity,” an official from the petroleum ministry said on condition of anonymity, as the ministry did not attribute direct quotes in the statement.
Onshore, IPR will drill two wells in the North Tanta block in the Nile Delta, while French independent firm Perenco won the El Fayrouz block in North Sinai, where it plans to conduct a 3D seismic survey and drill one exploratory well.
Officials noted that contracts from this bid round are expected to help replenish reserves and bring in technical expertise for deep water and onshore exploration.
