Egypt's $340 Million Oil and Gas Exploration Boost

Egypt has signed four major agreements totaling more than $340 million with international firms to explore oil and gas in the Mediterranean and Nile Delta. These deals aim to increase exploration and production amidst declining outputs. Key players include Shell, Italy's Eni, Arcius Energy, and Russia's Zarubezhneft.

In a strategic move to bolster its oil and gas sector, Egypt has inked four significant agreements with international firms, amounting to more than $340 million, as announced by the Petroleum Ministry on Saturday.

The Egyptian Natural Gas Holding Company (EGAS) spearheaded these agreements, which will see the drilling of 10 new wells, underlining Egypt's bid to reinvigorate exploration and production capabilities. Facing a shift from being a regional exporter to an importer due to declining outputs from aging fields, Egypt is now seeking to address its increasing domestic energy demands.

Production figures from the Joint Organisations Data Initiative (JODI) reveal a significant decline in gas output, which stood at 3,545 million cubic meters in May, a drop of over 40% since March 2021. These agreements include a substantial $120 million deal with Shell for the Merneith offshore area, a $100 million contract with Italy's Eni for the East Port Said offshore block, a $109 million arrangement with Arcius Energy for the North Damietta offshore area, and a $14 million agreement with Russia's Zarubezhneft for drilling in North El-Khatatba block.

(With inputs from agencies.)