Deals with Britain and USA to drill oil
Egypt, Business, 6/14/2003

Egypt's Minister of Petroleum, Sameh Fahmi, said the petroleum sector managed to attract world investors to drill oil and natural gas in Egypt.

Two new agreements were signed and two ones amended on June 13, with the British Petroleum Company (BP) and the U.S. Apache Petroleum Company to explore for oil and natural gas in Suez Gulf and Western Desert.

The two agreements include the allocation of $ 46 million for digging 17 wells.

The first agreement will enable BP undertake prospecting works in a 268 square kilometer area in Eastern Murgan in Suez Gulf at a capital of $ 14 million. BP is committed to drill three wells within a 9-year period.

In the second agreement, BP will exploit 96 square kilometer area in North Ghara in Suez Gulf at a capital of $ 12 million. BP is committed to drill other three wells within 9 years.

The concession agreement, signed by virtue of law 111 of 1993 with PB to use 28 square kilometers in Shoqir al Baharia area in Suez Gulf, was amended. By the amended provision of the agreement, pricing rights will be granted to the Egyptian petroleum authority.

Another concession agreement, signed by virtue of law 155 of 1963 with Apache Petroleum Company to use 423 square kilometers in Umm Baraka area in Western Desert, was amended.

The amended provision would turn Umm Baraka development contract from a partnership agreement into a production-sharing agreement.

Apache is committed to drilling 10 new exploratory wells and conducting a tridimensional seismic survey in order to maximize reserves of oil and natural gas.

The performance of the nonproductive sectors will be re-evaluated after 5 years of the enforcement of the agreement.

Previous Stories:
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  A French group offers L.E. 150 million investments in Egypt   (3/31/2003)
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