Ministry of Petroleum Signs USD 340M Deals to Boost Energy Production

The Ministry of Petroleum and Mineral Resources has signed two agreements valued at a combined USD 340 million with Shell Egypt and Cheiron Energy to enhance oil and gas production in Egypt.

The USD 222 million agreement with Shell Egypt, involving partnerships with the Egyptian General Petroleum Corporation (EGPC) and Malaysia’s Petronas, will focus on developing the deep-water areas of the Western Delta region. This initiative includes drilling three gas production wells and establishing associated offshore infrastructure. The project aims to increase gas production by 150 million cubic feet to 200 million cubic feet per day before the end of 2024. Shell Egypt has also highlighted recent successes in the West Nile Delta Deep Gas (WDDM) projects and new gas discoveries at the West Mina and Khufu fields in the northeast Ameria region.

In a separate deal worth USD 120 million, Cheiron Energy and KUFPEC (Kuwait Foreign Petroleum Exploration Company) will collaborate on exploring and developing the Gesium and West Long areas in the Gulf of Suez. This partnership involves drilling nine wells, including three exploratory wells, to increase crude oil production from approximately 21,000 to 26,000 barrels per day. Cheiron Energy has expressed its intention to expand its onshore and offshore operations in Egypt, including increasing the number of rigs, with a particular focus on boosting natural gas production from the West Burullus offshore field.