Egypt signs exploration deals with Dutch Shell, Italian company

Egypt signed two new oil exploration deals worth a total of $ 66 million, the Petroleum Minister said.

In statements after the signing with Dutch Shell and an Italian company on Monday, Sameh Fahmy said that the number of oil and gas exploration companies working in Egypt amounts to 50 investing a total annual sum of $ 2 billion.

The oil price hike to $ 40 per barrel raised fears that the world might face an energy crisis like that whach happened in the 1970s.

Fuel prices have climbed in recent months because of strong demand for gasoline, tight petroleum supplies and high crude oil costs.

On Monday, the Bush administration said that it welcomed a proposal by Saudi Arabia for OPEC to boost its crude oil production by about 6%, or 1.5 million barrels per day.

Kuwait, another member of the Organization of Petroleum Exporting Countries, said it supported such a move.