Egypt offers auction of oil and gas exploration concessions

Reuters reports that Egyptian General Petroleum Corp. (EGPC) and Egyptian Natural Gas Holding Co. (EGAS) announced Dec. 30 an international auction for 22 concessions for oil and gas exploration in accordance with production-sharing agreements.

The concessions are for areas in the Suez Canal, Egypt's Western Desert, the Mediterranean Sea, and the Nile Delta. The auction will end on May 19.

In order to spur new investments in the region, Egyptian officials have suggested that pricing arrangements should be changed to reflect the high costs of offshore exploration in deep water. According to industry estimates, Egypt pays offshore gas producers on average around $2-$3 per million British thermal units. Comparable payments for gas in Britain are currently above $10 and for Asian supply above $17.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...