Egypt’s Ministry of Petroleum and Mineral Resources has entered into a new oil and natural gas exploration agreement with British company Terra Petroleum, marking the firm’s first venture into the region. The partnership signifies Egypt’s exploration expansion and production optimization ambitions as international interest in the country’s petroleum sector continues to grow.
The contract grants Terra Petroleum access to the Northwest Maghra concession in the Western Desert to drill three wells, with initial investments of approximately $6.5 million. The contract also includes provisions for two-dimensional and three-dimensional seismic surveys at the concession area.
Minister of Petroleum Karim Badawi stated that the agreement demonstrates growing international company interest in the region and their willingness to invest. He emphasized that the Ministry is actively addressing policies and developments to support an encouraging work environment for global investors and accelerate oil exploration and production rates.
The Egyptian petroleum sector has been experiencing significant developments in exploration and production. Dana Petroleum recently made a substantial gas discovery following the drilling of the North El-Basant 1 exploratory well in Egypt’s onshore Nile Delta. Richard Hall, CEO of Dana Gas, stated that the latest drilling success reinforces the value of the company’s investment program in Egypt and highlights the significant remaining potential within the Nile Delta. He noted that by increasing local gas production, the program will help reduce Egypt’s reliance on imported LNG and fuel oil and is expected to generate more than one billion dollars in savings for the national economy over time.
Source: oilreviewafrica.com