Egyptian Egas Signs Exploration Deal with Edison

Natural Gas Holding Company has signed a natural gas and oil exploration agreement with Italy’s Edison, the Egyptian petroleum ministry announced January 5.

According to the ministry, the total investment in exploration will be about $86mn with a signature bonus of $1.5mn to drill two exploration wells in northeast Haby in the Mediterranean Sea.

The ministery said more exploration agreements are in the offing in 2017 to speed up the development of Egypt’s oil and gas resources.

Another Italian energy firm Eni said January 4 that its CEO Claudio Descalzi met the president of Egypt Abdel Fattah el-Sisi in Cairo to review the ongoing development of the giant Zohr gasfield.

Eni agreed late 2016 to farm out potentially up to 50% of Zohr to Rosneft and BP. Each has an option for another 5% on top of their 30% and 10% holdings respectively.

 Shardul Sharma