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Egypt Signs Eight Gas Deals Worth $934M

FILE PHOTO: Workers are seen at the damaged Saudi Aramco oil facility in Abqaiq, Saudi Arabia, September 20, 2019. REUTERS/Stephen Kalin/File Photo

Egypt has announced it signed eight research and exploration agreements with investments of $934 million.

The Egyptian Natural Gas Holding Company (EGAS), which announced the deals, said five agreements were signed during in 2019 and three others during the first quarter of 2020.

Magdy Galal, EGAS head, reviewed the development of natural gas production rates during the past five years and the efforts to confront the natural decrease of wells, in a statement.

He said that during the recent fiscal year, the company signed a total of five agreements.

He added that EGAS sealed an additional $51 million (EGP 802.30 million) worth of signature bonus deals in FY 2019/2020.

He added that the company has 37 ongoing agreements, a result of a Ministry of Petroleum and Mineral Resources strategy, which attracted new investments and the entry of Exxon Mobil and Chevron in the field of research and exploration in Egypt, and an increase in investments from companies such as Shell and Total.

The company’s production has reached 7.2 billion cubic feet of gas per day, the official noted.

In line with the existing 37 agreements, EGAS is in the final steps of officially signing $731 million (EGP 11.49 billion) more investment deals, the chairman said.

He added that the gas firm will also seal $14 million (EGP 220.22 million) worth of signature bonus contracts.

Galal said the company drilled 12 exploratory wells in the Mediterranean Sea and the Nile Delta during FY 2019/2020.

He further said EGAS carried out developments at a total value of $1.1 billion (EGP 17.30 billion) in FY 2019/2020.

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