Royal Dutch Shell, Apex International Energy sign USD 81 mn in exploration agreements: The Oil Ministry signed three oil and gas exploration agreements for 16 new fields in the Western Desert worth at least USD 81.4 mn with Royal Dutch Shell and Apex International Energy, according to Reuters. The ministry said Shell will invest USD 35.5 mn in its project, while our friends at Apex will invest USD 45.9 mn on two projects. Apex announced it has signed two concession agreements for 1.7 mn acres encompassing the West Badr el Din and South East Meleiha concessions, located in the prolific Abu Gharadig Basin in the Western Desert. Apex was awarded the two blocks as part of EGPC’s 2016 bid round. The company says it will invest a minimum of USD 27.4 mn during the first exploration phase to perform “detailed geological studies, acquire and process 3D seismic and drill exploratory wells.”
Egyptian Oil Minister Tarek El Molla has signed three oil and gas exploration deals for 16 new fields in the Western Desert worth at least $81.4 million in total with Royal Dutch Shell and the U.S.-based Apex International Energy.
The Petroleum Ministry said in a statement that the first deal would see Shell invest $35.5 million, and the other two would see Apex, which is operating in Egypt for the first time, invest a combined $45.9 million on two projects.
Egypt, which used to be a net energy exporter, has become a net importer in recent years as consumption has increased while production has fallen.
The government has been on a drive to lure back foreign investors to its energy sector in an effort to address a squeeze on public finances.
In December, Egypt accepted six bids for oil and gas exploration worth up to $200 million
Apex International Energy Signs Two Concession Agreements in Egypt
Apex International Energy, an independent oil and gas exploration and production company focused on Egypt, today announced that it has signed two concession agreements for 1.7 million acres encompassing the West Badr el Din (4,180 km 2) and South East Meleiha (2,535 km 2) concessions, located in the prolific Abu Gharadig Basin in Egypt’s Western Desert. As previously announced, Apex was awarded the two blocks as part of the Egyptian General Petroleum Corporation (EGPC) 2016 bid round.
Apex will invest a minimum of $27.4 million during the first exploration phase to perform detailed geological studies, acquire and process 3D seismic and drill exploratory wells.
Roger B. Plank, Founder and Chief Executive Officer of Apex International Energy, said, “We are very pleased to finalize these Concession Agreements and officially establish Apex’s foothold in Egypt. We thank H.E. Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources, for his support during this transaction and for encouraging investments like ours in Egypt’s attractive oil and gas market. We look forward to advancing our partnership with the Egyptian Ministry of Petroleum and Mineral Resources.”
Raed Saba, Deputy General Manager and Exploration Manager in Egypt, Apex International Energy, said, “These blocks provide promising opportunities for value creation in the Western Desert, where we have extensive experience and look forward to building a long-term presence. We are eager to get started on drilling wells to maximize the full potential of these blocks, while pursuing additional opportunities to grow our business in Egypt.”