Egypt to Invite Bids for 8 Oil, Gas Blocks in Mediterranean Sea

Egypt will soon auction eight oil and natural gas exploration blocks in the Mediterranean Sea, country’s petroleum ministry announced Sunday.

The eight blocks up for auction are West Arish Marine, East Port Said Marine, North Rumana Marine, North Ras al-Ash Marine, West al-Timsah Marine, South Taneen Marine, North Hammad Marine, and East Alexandria Marine, the ministry said adding that they cover an area of 11,849 sq km.

Cairo has multiple new exploration deals in recent weeks.

Egypt is looking to boost production of natural gas by attracting investment in the sector, mainly by foreign firms. Country’s natural gas output has seen a declining trend in recent years primarily because foreign firms have been reluctant to increase investment in exploration and production, particularly in costly offshore areas, until the government repays their previous outstanding debt.

Since late last year, Cairo has also been clearing outstanding debt to energy firms. In last few months the government has made payments to companies such as BG Group, Dana Gas and Circle Oil Plc.

To cater to the short term demand, Cairo has signed numerous gas supply deals in recent months.