Egypt, ExxonMobil sign two offshore Mediterranean exploration agreements
Egypt has signed two deals with Exxon Mobil Corp for oil and gas exploration in the Mediterranean, the petroleum ministry said on Tuesday.
The deals involve a minimum investment of $332 million, the ministry said in a statement. Exxon Mobil announced the acquisition of more than 1.7 million acres last month.
The first agreement is for exploration in the North East Amriya block, with a minimum investment of $220 million, the ministry said. The second is for the North Marakia block, with a minimum investment of $112 million.
The ministry said the Exxon Mobil agreements bring the total number of deals with investors to 82 since 2014, with a total minimum investment of about $16 billion for the drilling of 340 wells.
Egypt, ExxonMobil sign USD 332 million oil and gas agreements: The Oil Ministry has signed two new agreements with ExxonMobil for oil and gas exploration in the Mediterranean, according to a cabinet statement. The US company will invest a minimum USD 332 million to drill seven wells, paying the Egyptian government USD 17 million as a signature bonus. The first USD 220 million agreement covers four wells in the North East El Amriya offshore block, and the second will see Exxon drill three wells in the North Marakia block at a minimum investment cost of USD 112 million.
Background: The US oil giant acquired both blocks last month for offshore exploration, with a combined area of more than 1.7 mn acres. Exxon will operate and hold 100% interest in both blocks, where operations are expected to start this year. The agreement comes less than a week after Shell, Apache and Petronas inked USD 450 million in exploration and production agreements with the state oil company EGPC.