Royal Dutch Shell and Petronas have signed an agreement on partnership to invest $1 billion to dig eight oil wells in Egypt’s Nile Delta.
The development was disclosed in a release by Egypt’s Oil Minister, Tarek al-Moulla.
“Oil and gas exploration agreements had been signed by Shell and Petronas. According to the terms of the agreement, the two companies would invest $1 billion to dig eight oil wells in the Nile Delta,” the release said.
The agreement strengthens the presence of the two companies, especially Shell’s which confirms its prominent role in the basin. There is no information about the projects’ scope or starting date.
The release further indicates that another $10 million exploration agreement had been signed by Rockhopper, Kuwait Energy and Dover Corporation for the drilling of four additional wells in the western desert.
Tarek al-Moulla declared that Egypt would continue signing agreements for land and sea exploration in order to be able to meet the country’s energy need and reduce imports.
Since June 2014, Egypt has concluded 63 new oil and gas exploration agreements with potential investments up to $15 billion.
The oil minister added that the various reforms implemented by Egypt in the last few years as far as the oil sector is concerned, has yielded outstanding results.