Egypt Inks Three Oil, Gas Exploration Deals

Egypt has signed gas and oil exploration deals with the Dana Gas, Petroceltic International and Italy's Edison, a statement by country’s oil ministry said on Thursday.

The deals have a potential to bring in investment of at least $265 million for eight wells, the ministry said.

The areas where these wells would be drilled are Northern Sinai in the Mediterranean Sea and the Nile Delta.

The ministry further stated that with signing of these deals, the total number of new deals have reached 26 with the investment potential of close to $1.1 billion.

Egypt has been looking to encourage global energy companies to boost exploration and exploitation of oil and gas and there have been plans to hike gas prices that are paid to foreign players. In recent years overseas companies have been reluctant to expand exploration activities in the country due to low prices which do not even cover their investments.

With rising domestic demand, lack of supplies has led Egypt to import gas.

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