Home Oil and Gas Egypt has signed 8 gas exploration contracts worth $934m

Egypt has signed 8 gas exploration contracts worth $934m

The Ministry of Petroleum and Mineral Resources revealed that five gas exploration contracts were signed in FY2019/2020, and three others were signed in the first quarter of FY2020/2020.

The total size of investments indicated in the eight contracts is worth $934 million. As such, the total number of active deals becomes 37.

Sixth others – worth $731 million – are underway. The total value of signing bonus for the companies involved is $14 million.

The ministry highlighted that few companies entered the gas exploration market for the first time in Egypt. Those comprise Exxon Mobil and Chevron Corporation. Others – like BP, Shell, and Total – expanded their investments.

Over the above-mentioned period, 12 exploratory fields were drilled in the Mediterranean and Delta giving rise to seven discoveries. The drilling of four production wells was finished upping the total to 31. The primary production of those is 1.7 billion cubic meters in addition to 19,000 natural-gas condense barrels.

The capital costs of gas projects accomplished in the second half of 2019 and 2020 until the present worth $1.1 billion. The projects hold the launching of the second phase of the Zohr field, phase 9B of Western Delta field, the second phase of North Sinai’s Kamos field, phase B of Desouk gas field, expansions of the Southwestern Baltim “Barakesh” field, expansions of Pegonia field, expansions of Southern Desouk field, expansions of Ibn Younes field, and expansions of Southeastern Abou Al Naga. That is in addition to extending the Khabri-Al Qasr gas pipelines.

Production in Egypt has recorded 7.2 billion cm/d, while the daily local consumption stands at 5.8 billion cubic meters. The breakdown is 60% used to generate electricity, 23% consumed by the industrial sector, 11% enter petrochemical industries, and six percent go to households and vehicles.

The number of vehicles converted to be powered by natural gas is 42,300 making the total 318,300. The natural gas stations increased by 19 to be 206, and transformation points rose by seven to become 78.

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