Oil Ministry signs three new oil and gas exploration agreements in Gulf of Suez and North Sinai
Oil Ministry inks three new agreements for oil and gas exploration in North Sinai and the Gulf of Suez. The first agreement, between GHP Exploration Corp. and the South Valley Petroleum Holding Company, will see the company drill four new wells at a cost of about USD 6 mn at the West Gabal El Zeit concession in the Gulf of Suez, according to a ministry statement. The second agreement was signed between the EGPC and UK’s Perenco for exploration in the North Sinai offshore concession, while the third was with the EGPC for exploration in the Gulf of Suez’ Ras Fanar concession. The Oil Ministry is currently finalizing procedures for 18 other agreements that will be announced soon, according to Minister Tarek El Molla. The government had announced plans to step up exploration activities in FY2018-19 as the country marches toward natural gas self-sufficiency and bids to become a regional energy export hub.
On a related note, the EGPC is reportedly considering renewing a crude oil import agreement with Iraq for a third year, government sources tell Al Mal. The authority is planning to re-negotiate payment terms and request to increase its grace period to six months from three months, if it decides to commit to the agreement for another year, they add. Egypt had renewed its agreement with Iraq, to import 12 mn bbl of crude oil, back in January.