CAIRO: Egypt signed two oil and gas deals worth a total of $17 billion Saturday on the sidelines of the economic conference, and another $4 billion deal is scheduled to be signed Sunday.
Such agreements would help meet growing energy demands in Egypt, which has been witnessing a sharp energy shortage over the past four years, causing daily power cuts, with the crisis taking a severe turn for the worse last summer.
Minister of Petroleum Sherif Ismail signed a $12 billion deal with British Petroleum Egypt in the presence of UK Ambassador to Egypt John Casson, Saturday on the sideline of the Egypt Economic Development Conference (EEDC).
The deal of the West Nile Delta project is aimed to develop 5 trillion cubic feet (tcf) of gas resources and 55 million barrels of condensates, after the British company announced a new “important” deep-water gas discovery in Egypt’s Mediterranean North Damietta Offshore Concession last week.
Bob Dudley, Chief Executive Officer of BP, said the deal would create new job opportunities for young people, adding “We are proud to be with you.”
The project is “a vote of confidence in Egypt’s investment climate and economic potential,” BP stated last week.
Saturday also witnessed the signing of an agreement between Italy’s oil major ENI, and Egypt to inject investments worth $5 billion in developing gas fields in concessions located in the Mediterranean, the Western Desert, the Nile Delta and Sinai to produce 900 million cubic feet.
“The agreement would be finalized within the coming two months,” Ismail told Youm7 after signing the deal.
Another deal worth $4 billion between Egypt’s Petroleum Ministry and BG Egypt, a subsidiary of British Gas Group, will be signed on Sunday, the third day of the EEDC.
Further, Egypt’s Ministry of International Cooperation will sign an agreement with the Islamic Bank of Development to provide $200 million for financing a petrol production unit in Upper Egypt’s Asyut governorate to meet fuel demand in Upper Egypt.