UK’s Terra Petroleum signs first Egypt oil, gas exploration deal – ministry

Egypt on Monday signed a new oil and gas exploration agreement with UK-based Terra Petroleum, marking the company’s first entry into the country’s energy sector, the petroleum ministry said in a statement.

The deal, signed between the Egyptian General Petroleum Corporation (EGPC) and Terra Petroleum, covers the North West Moghra area in Egypt’s Western Desert and involves initial investments of about $6.5 million.

Under the agreement, Terra Petroleum plans to drill three exploration wells and carry out 2D and 3D seismic surveys as Egypt seeks to boost hydrocarbon output and attract foreign investment.

Petroleum and Mineral Resources Minister Karim Badawy said the agreement reflects growing confidence among international energy companies in Egypt’s investment climate, adding that the government is working to provide a supportive regulatory environment to speed up exploration and raise production.

Egypt has been stepping up efforts to increase oil and gas exploration in the Western Desert as part of a broader strategy to shore up energy supplies and expand output.

Attribution: Amwal Al Ghad English