Western companies flock to Egypt for oil exploration bids
Western companies flock to Egypt for oil exploration bids
Cairo is on a drive to draw foreign investors back to its energy sector in an effort to boost squeezed public finances at a time of domestic economic hardship.
2 min read
Exploration contracts signed by international firms are worth around $200 million [AFP]
Egypt has accepted six bids from international firms for oil and gas exploration, the country's petroleum ministry said on Friday.
Companies involved in the process include Royal Dutch Shell, BP, Apache Corp, and Apex International Energy with exploration contracts signed to date worth around $200 million.
In May, Egypt's General Authority for Petroleum announced an international tender related to 11 oil and natural gas blocks located in the Western Desert and Gulf of Suez with Cairo keen to boost oil and gas production to meet growing energy demands.
In October, Saudi Arabia stopped delivering lucrative crude supplies to Egypt in the midst of a diplomatic fallout between the two states.
It increased the need for Cairo to search for alternative suppliers with Kuwait reportedly pulling up the slack.
Since Friday's announcement Apex has said it has been awarded two blocks covering 6,714 square km in the Western Desert.
It stated a commitment to "invest $27.4 million during the first exploration phase to acquire and process 3D seismic and drill six exploration wells".
In the midst of a financial crisis, and having secured a World Bank loan, Egyptian President Abdel Fattah al-Sisi has embarked on a drive to draw foreign investors back to Egypt, with recent announcements that Russia is set to begin construction on a Suez port next year.
According to Russian officials that project will provide 77,000 jobs, with $4.6 billion expected to be invested in the construction of the area by 2035.
More In News
