Egypt to Issue Exploration Tender for 11 Oil, Gas Blocks

Egypt will issue an international tender for 11 oil and natural gas exploration blocks in the Mediterranean Sea and Nile Delta during the second half of fiscal year 2015-2016 (Jul-Jun), head of state owned EGAS said Sunday.

Khaled Abdel Badie said that Egypt will also sign three new contracts for Mediterranean Sea development worth a total of $500 million. During the first half of the year four bids were accepted with total investment potential of $306 million.

He added that the total gas production from new projects during the year 2015-2016 is expected to reach about 760 million cubic feet gas per day with an average production added about 385 million cubic feet of gas per day.

In the year 2016-2017, five new projects are likely to be implemented while four new projects are expected to reach completion.

Earlier this month, Petroleum Minister Tarek El Molla told Reuters that Egypt owed $3 billion to foreign oil companies till the end of December 2015.

Domestic natural gas production in Egypt has declined in recent years as foreign firms cut down on investments in the sector as government struggled to pay the arrears. The North African nation has resorted to LNG imports to satisfy local demand. The country is expected to remain an importer till the end of the decade.