Petroleum and Mineral Resources Minister Tariq al-Mulla has signed two new oil and natural gas exploration agreements in the Sinai and Gulf of Suez regions, with total investments worth roughly US$65 million, and $3.5 million as grants.
The first agreement, signed with the General Petroleum Company, aims to improve production in the Sinai regions of Sidr, Asal, Matarma and Karim, Mulla said on Monday.
A second, similar agreement was signed between the General Petroleum Authority and the companies of Oceaneer Zaafarana Ltd, Sahari Oil Services Company, and Cameron Petroleum Company for the North Zaafarana area, Gulf of Suez.
The agreements reflect state plans to grow the oil sector, while supporting national companies engaged in research and exploration. The Ministry of Petroleum hopes to increase the production and reserves of Egypt from oil and natural gas.
Political stability and an attractive investment climate are two important encouragements for international companies to sign new oil agreements with Egypt, Mulla claimed.
Egypt’s general fulfilment of its commitments and the return of international bidding have had the greatest impact on the number of oil and gas exploration agreements from June 2014 until now, he continued. The period allegedly saw 61 new agreements with a minimum investment of $14 billion.
Edited translation from Al-Masry Al-Youm