Exclusive - Egypt Greenlights Gas Exploration in Western Mediterranean Concessions “For the First Time”
(AWP) - Egypt has given the green light to five international energy companies to begin exploration operations in the western Mediterranean region for the first time by the end of this year and the beginning of next year, a source in Egypt`s petroleum sector said.
The source told Arab World Press (AWP) on condition of anonymity that Egypt has awarded 11 concessions to BP, ExxonMobil, Total, Chevron, and Shell with the aim of drilling between four and five wells with potential reserves.
He added that Abu Dhabi sovereign fund Mubadala will participate through an indirect agreement with one of the five main companies.
"Mandatory exploratory drilling operations are scheduled to begin by the end of 2024 and the beginning of 2025... The decision will have a positive impact on the country's production of natural gas, as the discovered areas are expected to increase the country's production capacity by about 25 percent, within one year after operations start", the source said.
He stressed that Egypt is counting heavily on the development of this promising region, which is expected to include one or two fields of the same size of production as Zohr field in the eastern Mediterranean.
He explained that the five companies had completed 3D seismic survey of the area, which exceeds 30,000 square kilometers, at a total cost of $115 million, after concluding 7 agreements with the five companies.