Egypt seals $340M deals with Shell, Cheiron Energy to boost oil production
Updated 7/28/2024 3:51:00 PM
Arab Finance: Egypt has signed two agreements worth a combined $340 million with Shell Egypt and Cheiron Energy to boost oil production at the Mediterranean and the Gulf of Suez, according to a statement.
The first agreement was signed between Minister of Petroleum and Mineral Resources Karim Badawi, the Country Chair for Shell Egypt Dalia El-Gabry, the Chairman of Egyptian General Petroleum Corporation (EGPC) Alaa El-Batal, and Malaysia’s Petronas.
Under this agreement, the tenth stage of increasing the production rates and reserves of natural gas at West Delta Deep Marine concession will see additional investments totaling $222 million.
This includes the ongoing drilling of three wells, set for producing between 150 and 200 million cubic feet of natural gas before the end of this year.
As for the second agreement, it was inked between the petroleum ministry, the EGPC, Cheiron Energy, Kuwait Foreign Petroleum Exploration Company (KUFPEC) to pump new investments of around $120 million into ramping up production.
This agreement involves a commitment of drilling nine wells, three of which are exploratory wells to contribute to scaling up daily production to 26,000 barrels of crude oil from about 21,000 barrels.
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