Egypt’s Oil Ministry has signed three oil and gas exploration agreements in the Mediterranean Sea worth an estimated US$220 million, according to news reports.
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Image from Eni. |
The deals are with supermajor BP, France’s Total, and a subsidiary of Italy’s Eni, IEOC, for offshore areas of North El Hammad, North El Tabya, and North Ras El Esh. The agreements include about six new wells to be drilled, the ministry said in a statement today (28 December), according to the Daily News Egypt.
Yesterday, Eni confirmed two deals, however did not disclose how much each deal was.
According to Eni, through its subsidiary IEOC, the Italian giant will be operator of the North El Hammad block with 37.5% stake, in participation with BP, (37.5%), and Total (25%). This deal is expected to be worth some $80 million, according to news reports.
North El Hammad covers an area of 1927sq km, and is to the west of the Abu Madi West and Baltim-Baltim South development areas, where Eni recently made the significant discoveries of Nooros, and Baltim South West.
Eni’s second deal is a 50:50 deal with its subsidiary and operator BP in the North Ras El Esh field, covering an area of 1389sq km, southwest of the development areas of Temsah and Port Fouad. This deal is reportedly worth $75 million.
The third agreement with BP in North El Tabya would inject investments worth $65 million, the Egyptian Oil Ministry report said.
“Signing the three agreements is the result of a global bid launched by the Egyptian Natural Gas Holding Company (EGAS) for gas and petroleum exploration,” said Egyptian Minister of Petroleum Tarek El-Molla, according to the Daily News Egypt.
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