Egypt announces latest concession awards
Egypt has awarded concessions for eight onshore and offshore oil and gas blocks following a digital bidding round, the government announced on January 3.
The acreage spans 12,300 km2 and includes two blocks in the Mediterranean, four in the Western Desert and two more in the Gulf of Suez, Egypt's petroleum ministry reported in a statement. The awards went to Eni, BP, Apex International, Energean, Ina Nafta, Sipetrol and United Energy.
Overall, the companies will be required to invest at least $250mn in exploring the areas, in addition to the $23.7mn they have paid in signing bonuses. The concession terms also commit them to drill at least 33 wells.
Egyptian petroleum minister Tarek El Molla said the results from the round were positive considering the impact of the coronavirus pandemic on markets. Companies that were awarded concessions will receive all available geological and geophysical data on the regions in question, including data obtained from 42 3D seismic surveys and 2,894 2D seismic surveys, as well as information on 118 previously drilled wells.
Egypt now enjoys a surplus of gas supply thanks to the recent development of several large offshore deposits including the Zohr field, which Eni brought on stream in 2017. The government wants to expand the role of gas in the domestic economy and ramp up LNG exports, and has also unveiled plans for a series of petrochemical complexes that will run on by-products from gas extraction.
The head of the Egyptian Gas Association Khaled AbuBakr discussed the state of play in Egypt's gas industry in an interview with NGW last year.