Minister of Petroleum and Mineral Wealth Tareq Al Mulla -REUTERS Minister of Petroleum and Mineral Wealth Tareq Al Mulla -REUTERS

Oil Minister: Three int'l companies win first bid for oil, gas exploration in Red Sea

Sun, Dec. 29, 2019
CAIRO, Dec 29 (MENA) - Minister of Oil and Mineral Wealth Tarek el Mulla announced Sunday that three companies have won the first international bid launched by South Valley Egyptian Petroleum Holding Company (GANOPE) in March for oil and gas exploration in the Red Sea.

In a statement released on Sunday, Mullah said the US "Chevron" Company won the bid for exploration in Sector No. 1, while "Shell" won the third sector and the UAE's Mubadala and Shell have jointly obtained the exploration for the fourth sector.

The total area of exploration blocks by the three companies is about 10,000 kilometers with investment volume of dlrs 326 million that could increase to several billion dollars in the phase of development after the end of the exploration phase, added the statement.

The minister made it clear that Egypt, for the first time, opened the door for investing in 10 Offshore Exploration Blocks in the Egyptian Red Sea within the context of the Ministry of Petroleum’s strategy to achieve the optimum economic utilization of all potentials and natural resources to contribute to the sustainable development of Egypt.

He attributed Egypt's exploitation of its oil wealth to the strong political will and full support of President Abdel Fattah El Sisi. The move also crowns the agreement of maritime demarcation between Egypt and Saudi Arabia, which has allowed the Oil Sector to launch its first international bidding in the Red Sea, he noted.

Mulla said the three companies' winning the bid is a positive indication on the climate of investment in Egypt, especially that these companies have the latest international technologies and expertise in working in the virgin exploration areas such as the Red Sea.

He pointed out that the operation of these giant oil and gas companies would boost expansion in the volume of investments in the oil sector and increase its success opportunities, lauding their vast expertise in exploration in deep waters.

The results of the first international bidding in the Red Sea will have a positive impact on the sector at the current phase and would motivate other major companies to join more bidding chances in Egypt, he said.
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