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Egypt's EGAS signs a preliminary agreement with BP for the drilling of five Mediterranean gas wells

Egypt's Petroleum Ministry announced on Monday that the Egyptian Natural Gas Holding Company, or EGAS, has signed a preliminarily agreement with BP for drilling five new gaswells in Mediterranean Sea.

The Ministry's efforts to increase exploration and production are reflected in the memorandum signed by EGAS, a state-owned company.

Egypt, once the largest gas exporter in the region, is increasingly importing to meet its domestic demand, as production from old fields declines and new investments are slow.

According to the Joint Organisations Data Initiative, gas production in May decreased by more than 40% compared to March 2021.

The statement said that drilling of the five deep wells at 300 to 1,500 meters is expected to begin next year.

The Petroleum Ministry announced on August 30 that it had signed four agreements with international companies worth over $340 million for the exploration of oil and gas in Mediterranean and Nile Delta.

Shell, Eni of Italy, and Arcius Energy were among the firms. Arcius Energy is a joint venture owned 51% by BP, and 49% by ADNOC investment arm XRG. (Reporting and editing by Muhammad Al Gebaly, Jaidaa T.A. Haha)

(source: Reuters)