Egypt’s Ministry of Petroleum and Mineral Resources has signed two agreements with Shell and Cheiron Energy worth $342 million to increase oil and natural gas production. The agreements came following the Minister of Petroleum and Mineral Resources Karim Badawi’s meeting with the presidents of Shell and Cheiron Energy.
In a bid to bolster investments in oil and natural gas production, Egypt recently held a series of discussions with international oil companies operating in the country.
$222 million investment in West Delta area
The Egyptian General Petroleum Corporation (EGPC), Shell Egypt and Malaysia’s Petronas signed the first agreement to invest $222 million in the West Delta area to increase natural gas production. The investment will fund the 1oth phase of the project and increase production rates and recoverable reserves of natural gas.
The companies will drill three gas production wells and establish offshore facilities to bring those wells into production. The wells’ capacity could reach 150 to 200 million cubic feet before the end of 2024.
Read: Egypt sets sights on $5 billion investment goal with India by 2027
$120 million deal with Cheiron Energy
The EGPC, Cheiron Energy and the Kuwait Foreign Petroleum Exploration Company (KUFPEC) signed the second deal to invest around $120 million in increasing Egypt’s oil production and expanding exploration in the Geisum and Tawila West area in the Gulf of Suez.
Under this agreement, Cheiron Energy and KUFPEC have committed to drilling nine wells, including three exploration wells. This will raise exploration efforts and production from approximately 21,000 to 26,000 barrels of crude oil per day.
Officials from Cheiron Energy also confirmed that they plan to increase the number of rigs in their work areas to reach the common goal of increasing production and reserves. They also said that they were exploring prospects of increasing natural gas production from the West Burullus offshore field development project.
For more news on energy, click here.
