Egypt signs exploration deals with US and Cyprus firms

Egypt's minister of petroleum and mineral resources has signed two agreements for oil and gas exploration in upper Egypt with U.S. company IPR and Cyprus subsidiary Mediterra, the ministry said in a statement on Tuesday.

The agreements include the drilling of three exploration wells located in sectors 7 and 8 in the country's southern Al-Baraka field in Aswan, investments worth a minimum $4.3 million and a one-off fee for the licence called a signature bonus, totalling $200,000.

The contracts were signed between Egypt's Ganoub El-Wadi Petroleum Holding Company (GANOPE), IPR and Mediterra.

Minister of Petroleum Tarek al-Molla said the deals will help increase oil production to meet local needs.

Al-Molla added that the new agreements will intensify research activities in the southern area of the country which has promising petroleum prospects.

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