Minister of Petroleum Tarek El-Molla during the signing (Photo: Egyptian Cabinet)
The Egyptian Ministry of Petroleum has signed nine agreements to search for and produce oil and natural gas in the Mediterranean and Western Desert regions.
The agreements include digging 38 wells with investments of a minimum $452.3 million and signing grants of about $84 million.
According to a statement by the Ministry of Petroleum this morning, the agreements signed were between the Egyptian Petroleum Corporation and Egyptian Natural Gas Holding Co. (EGAS), Apache Corporation, BP plc, Shell Company and Petronas Company.
Minister of Petroleum and Mineral Resources Tarek El-Molla stated that with these nine agreements, the number of oil agreements signed by the ministry with investors and partners since July 2014 has reached 79 agreements. The minister added that another four agreements approved by the Egyptian House of Representatives will be signed later.
Minister El-Molla explained that the ministry's strategy involves offering new international bids during the coming period as well as concluding more oil agreements.
The minister asserted that the oil sector is “the backbone of economic development,” and that the oil agreements will attract new foreign investments that should help in boosting and maximising Egypt's oil reserves and production.