Egypt has awarded five oil and gas concessions that are expected to bring in minimum total investments of about $100 million with bonuses of $3.7 million to drill 16 exploration wells for oil and gas, having received seven offers for 5 blocks, the oil ministry said in a statement on Monday, as the country seeks to boost investment in the key energy sector.
A consortium of the Emirati firm Pacific and Malaysia’s Hibiscus Petroleum will explore in the 68 square kilometer (26 square mile) Block 2 Southeast Ras el-Ush concession in the Gulf of Suez, with a minimum investment of $68 million and a signing bonus of $2 million in exchange for drilling five exploratory wells, the statement said.
Egypt’s Trident was awarded Block 6 Northwest Tair al-Bahr concession in the Gulf of Suez – covering a 191 square kilometer area with an obligation to spend a minimum of $4.5 million, and a signing bonus of $500,000 for the drilling of six exploratory wells.
Cheiron Magawish was awarded Block 4 North Magawish concession, a 194 square kilometer area in the Gulf of Suez with the obligation to spend a minimum of $23.5 million, and a $1 million signing bonus to drill two exploratory wells.
A consortium made up of IPR and Mediterra Energy was awarded two blocks in the Kom Ombo area: Block 7 North El Baraka concession for 11860 square kilometers and Block 8 South El Baraka concession for 10,900 square kilometers. The minimum spending obligations for the respective blocks are $1.85 million with a bonus of $100,000 for the drilling of one exploratory well, as well as $2.45 million and a $100,000 bonus to drill one exploratory well.
State-owned Ganoub El Wadi Petroleum Holding Co (Ganope) had opened bidding at the end of 2014 on 10 concessions in the Gulf of Suez, Eastern Desert and West and East of the Nile in the areas of Al-Naqra and Kom Ombo.
(Source: Reuters, Ministry of Petroleum)