Three agreements signed to excavate oil, natural gas

Petroleum Minister Sherif Ismail and Regional President of BP Egypt Hisham Mekkawi and Sea Dragon Energy Inc. Manager Ahmed Moaz signed three new petroleum agreements to excavate oil and natural gas in the Mediterranean and Delta.

Investments of the agreements reach minimum of US$717 million and a signing bonus of $34 million to dig seven wells during the period of excavation at an area of more than 11,000 kilometers.

Ismail stressed that the agreements reflect BP's intention to expand its investments in Egypt as well as establish new projects in partnership with the petroleum sector. It also opens door for developing investments of Sea Dragon Energy Inc. and increasing its excavation areas, which supports its presence in Egypt over the coming period.

The first agreement was signed with BP to work at North Meks area on the Mediterranean and dig two wells with investments of $330 million and signing bonus of $10 million. The second agreement was signed with BP to work at North Tanin area and dig two wells with investments of $370 million and signing bonus of $20 million. The third agreement was signed with Sea Dragon Energy Inc. to work on south of Desouq area in Delta and dig three wells with investments of $17 million and signing bonus of $4 million.

The total number of agreements signed by the petroleum sector reached 29 agreement to excavate oil and natural gas with a minimum rate of investments of $2 billion and signing bonuses of $195 million to dig 126 wells, the minister said. He indicated to new tender to excavate oil and natural gas, which was proposed by end of 2013.

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