Egypt has entered into four oil and gas exploration agreements with international companies valued at more than $340 million (E£16.52 billion), aiming to bolster domestic production in the face of growing energy demand.
The agreements, disclosed by the Petroleum Ministry on 30 August, encompass offshore blocks in the Mediterranean and Nile Delta.
These contracts include a commitment to drill 10 new wells and were secured by the state-owned Egyptian Natural Gas Holding Company (EGAS).
Shell International has entered into the largest agreement, valued at $120 million (£88.7 million), for exploration in the Mediterranean's Merneith offshore area. The agreement includes plans for three wells.
The second agreement is with Italian energy company Eni, which has pledged $100 million (€85.31 million) for drilling three wells in the East Port Said offshore block.
Russia’s Zarubezhneft signed the third agreement, valued at $14 million (Rbs1.13 billion), which is set to focus on the North Khatatba concession in the Nile Delta, with four wells scheduled to be drilled.
In addition, Arcius Energy, a joint venture between BP and XRG, the investment arm of the United Arab Emirates' ADNOC, has committed to invest $109 million in the North Damietta offshore area.
These investments come at a critical time as Egypt grapples with declining gas field supplies and a surge in electricity consumption, compounded by regional tensions impacting the energy sector.
The Ministry of Petroleum has announced that the contracts are a component of a larger strategy aimed at enhancing exploration efforts, ensuring a stable domestic supply and strengthening Egypt's position as a key energy hub in the region.
Concurrently, Egypt secured a series of agreements in June to procure between 150 and 160 cargoes of liquefied natural gas (LNG) through 2026, a move aimed at meeting the country's rising power requirements amid economic challenges. These LNG agreements with global energy companies and trading houses are expected to cost Egypt more than $8bn at present market rates.