Egypt signs five agreements on prospecting for oil, gas

Egypt's Minister of Petroleum Sameh Fahmi yesterday signed an agreement with a Canadian firm to prospect for oil and natural gas in Wadi Araba in the Gulf of Suez.

"Prospecting will be carried out on an area of 393 square kilometers, and seven new oil fields are to be drilled at a cost of $ 12 million," Fahmi said.

The Petroleum Minister also concluded another four agreements to increase investment in four separate joint ventures with foreign firms.

According to the first agreement, US Ocean East firm will invest $ 57 million in the Gulf of Suez project until 2005.

The second agreement was made with the German Oil Company for an additional $ 20 million for field development over the next four years.

The terms of the third agreement stipulate the allocation of $ 42 million by British Gas and Italian Addison to drill seven oilfields in their deep water concession area off the West Delta.

The fourth agreement involves British Gas, Addison and the Dutch Shell Company, who will review natural gas prices in compliance with Egypt's pricing policy.