Egypt's government has signed six new agreements for oil and gas exploration in the Gulf of Suez and the Western Desert, the Oil Ministry announced 9 January.
The agreements were with Shell, Italian firm ENI, BP and Canada's Trans Globe, along with Tharwa and General Petroleum Company, the state-owned companies, with minimum investments of about US$5.271 million and a signature bonus of $124 million to drill 41 wells.
The six agreements represent the first of 20 new petroleum agreements that will be signed over the coming period, said the Oil Ministry.
It added that the Petroleum Sector has already signed 36 petroleum agreements since November 2013, and until the end of October 2014 with minimum investments of about $2 billion.
Egypt has been struggling with soaring energy bills caused by the high subsidies it provides on fuel for its population, making it a net importer over the last few years.
Economic turmoil has also caused the government to fall into arrears with existing producers. The oil ministry said last month Egypt had repaid $2.1 billion of its debt to foreign energy firms as it seeks to restore confidence and encourage investment. It still owes $3.1 billion, according to a report by Reuters.
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