Egypt to Auction 22 Oil, Gas Concessions

Two Egyptian state owned firms, General Petroleum Corporation (EGPC) and Natural Gas Holding Company (EGAS) announced on Monday an international auction for 22 concessions for oil and gas exploration in accordance with production-sharing agreements, reports news agency Reuters.

According to Reuters, which quotes from an advertisement issued by the two firms, the concessions are for areas in the Suez Canal, Egypt's western desert, the Mediterranean sea and the Nile Delta.

The auction will end on May 19, 2014.

Egyptian officials have suggested pricing arrangements should be changed to reflect the high costs of offshore exploration in deep water, arguing that such reform would spur new investments, adds Reuters.

Last week, Egypt's cabinet approved seven new oil and gas exploration agreements, which have potential to attract investments worth at least $1.2 billion.

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