Egypt awards oil and gas concessions worth US$100mn

Offshore Exploration - Adventures of KMG-Morris - FlickrBulk of the new concessions have been given for exploration in the Gulf of Suez. (Image source: Adventures of KMG-Morris/Flickr)Egypt has awarded five oil and gas concessions that are expected to bring in a minimum total investment of US$100mn

This was revealed in a statement from Egypt’s Oil Ministry as the country seeks to boost investment in the key energy sector. Egypt has gone from being an energy-exporting country to being a net energy importer. It is seeking to boost local energy production to cope with its worst energy crisis in a long time.

A consortium of UAE-based firm Pacific Oil and Malaysia’s Hibiscus Petroleum will explore the 68 sq km Southeast Ras el-Ush concession in the Gulf of Suez. The minimum investment the consortium will make is US$68mn, according to the ministry’s statement.

In another deal, Kieron Megawish will explore in the 194 sq km North Megawish concession in the Gulf of Suez, with a minimum investment of US$23mn. Three other concessions have been awarded, with minimum investments of US$7mn, the statement said.

State-owned Ganoub El Wadi Petroleum Holding Company 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.

Egypt’s minister of petroleum, Sheriff Ismail, recently said that the country’s petroleum sector has new projects that will be offered and implemented now that the new Suez Canal has been inaugurated. According to Ismail, the petroleum sector is currently implementing a number of projects in the fields of refineries and petrochemicals at total investments of nearly US$9.24bn.

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