Back to the complete issue
Wednesday, 29 January 2020

Egypt, ExxonMobil sign USD 332 mn in oil and gas agreements

Egypt, ExxonMobil sign USD 332 mn oil and gas agreements: The Oil Ministry has signed two new agreements with ExxonMobil for oil and gas exploration in the Mediterranean, according to a cabinet statement. The US company will invest a minimum USD 332 mn to drill seven wells, paying the Egyptian government USD 17 mn as a signature bonus. The first USD 220 mn agreement covers four wells in the North East El Amriya offshore block, and the second will see Exxon drill three wells in the North Marakia block at a minimum investment cost of USD 112 mn.

Background: The US oil giant acquired both blocks last month for offshore exploration, with a combined area of more than 1.7 mn acres. Exxon will operate and hold 100% interest in both blocks, where operations are expected to start this year. The agreement comes less than a week after Shell, Apache and Petronas inked USD 450 mn in exploration and production agreements with the state oil company EGPC.

Egypt is considering sending LNG shipments to Lebanon via sea, Oil Minister Tarek El Molla told Al Arabiya. Egypt is already technically linked to Lebanon through the Pan Arab Pipeline built in 2003 — the same pipeline that delivers our gas to Jordan — but using the pipeline means that gas would have to pass through Syria first before reaching Lebanon which is no longer a viable option, El Molla said..

Egypt’s ambitions for becoming a regional energy hub have seen major developments in recent weeks: Israeli finally began exporting gas this month under the landmark USD 19.5 bn agreement. Egypt is currently receiving 200 mcf/d from Israel’s Mediterranean fields, and is set to receive more than 85 bcm over the next 15 years to use both for domestic consumption and to export. The seven-member Eastern Mediterranean Gas Forum was also formalized this month, an organization which will increase cooperation between the region’s gas producers, consumers and transit countries.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.