Egypt has signed four agreements with international firms worth more than $340 million to explore oil and gas in the Mediterranean and Nile Delta, the Petroleum Ministry said on Saturday.

The deals, signed by the state-owned Egyptian Natural Gas Holding Company (EGAS), provide for the drilling of 10 wells as part of the ministry’s efforts to boost exploration and production.

Egypt, once a regional exporter, has increasingly turned to imports to meet rising domestic demand as output declines from aging fields and investment lags in new ones.

Gas production in May was 3,545 million cubic metres, down more than 40% from March 2021, according to the Joint Organisations Data Initiative (JODI).

The first deal, with oil giant Shell, is worth $120 million and covers three wells in the Mediterranean’s Merneith offshore area, the ministry said.

Italy’s Eni signed a $100 million agreement to drill three wells in the East Port Said offshore block.

A third agreement, worth $109 million, went to Arcius Energy, a joint venture 51% owned by BP and 49% by ADNOC’s investment arm XRG, to operate in the North Damietta offshore area.

The ministry also announced a $14 million deal with Russia’s Zarubezhneft to drill four wells in the onshore North El-Khatatba block in the Nile Delta.

Source: Reuters