Egypt signs exploration deal with British firm

Egypt's Ministry of Petroleum and Mineral Resources has entered into a new oil and natural gas exploration agreement with British company Terra Petroleum 

The partnership signifies the region's exploration expansion and production optimisation ambitions as Terra Petroleum steps into the region for the first time.

The contract gives Terra Petroleum access to the Northwest Maghra concession of the Western Desert to drill three wells, leading up to initial investments of approximately US$6.5mn. Additionally, the contract also leaves scope for two-dimensional and three-dimensional seismic surveys at the concession area.

Speaking of the deal, Minister of Petroleum Karim Badawi said that the agreement stands testament to the growing interests of international companies towards the region and their willingness for investment. As it builds trust in the Egyptian petroleum sector's investment climate, the Ministry is actively addressing policies and developments to support an encouraging work environment for global investors, and accelerate oil exploration and production rates.

Players in Egypt has been experiencing big developments in the exploration and production front with Dana Petroleum being the latest example. It has recently made a significant gas discovery following the drilling of the North El-Basant 1 exploratory well in Egypt’s onshore Nile Delta. 

Richard Hall, CEO, Dana Gas, said, “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta. The North El Basant-6 result builds on the momentum of our earlier wells and supports our efforts to increase domestic gas supply and reserves. By increasing local gas production, the programme 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."