Egypt Signed Key Agreements to Boost Oil and Gas Output

SEATTLE (Oil Monster): Egypt’s Ministry of Petroleum and Mineral Resources announced that it has signed two major agreements, aimed at boosting the country’s oil and natural gas production. The agreements worth around $342 million were signed with Shell and Cheiron Energy, following meeting of the Minister of Petroleum and Mineral Resources Karim Badawi with the company’s top officials.

The first agreement was signed by the Egyptian General Petroleum Corporation (EGPC), Shell Egypt and Malaysia’s Petronas. The agreement proposes investment of $222 million in the West Delta area, aimed at increasing natural gas production. The investment will play a key role in increasing production rates and recoverable natural gas resources.

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As per agreement, the companies will drill three gas production wells and establish offshore facilities to bring those wells into production. The capacity of these wells are expected to touch 150-200 million cubic feet before the end of the year.

The second agreement was signed by The EGPC, Cheiron Energy and the Kuwait Foreign Petroleum Exploration Company (KUFPEC). As part of this, an investment of around $120 million towards expansion of exploration in the Geisum and Tawila West area in the Gulf of Suez. A total of nine wells, including three exploration wells will be drilled. This will boost production from approximately 21,000 to 26,000 barrels of crude oil per day.