Egypt to directly award West Mediterranean O&G exploration rights
Egypt will directly award contracts for oil and gas exploration blocks in the Western Mediterranean to companies equipped to drill in deep water, Oil Minister Tarek El Molla told CNBC Arabia. The government plans to offer some concessions through bid rounds, but the priority is to select companies with advanced technology to drill in the area, the minister said, adding that legislation for this will be announced this year. Egypt’s West Mediterranean coast has up until now remained unexplored for hydrocarbons.
A change of plan: State-owned gas firm EGAS was originally expected to put 11 gas exploration blocks up for auction this quarter.
The announcement comes less than a month after a successful Red Sea bid round, which saw three exploration blocks covering 10k sqkm awarded to Chevron, Shell and Mubadala at the end of December.