Nine international companies have submitted offers for oil and gas exploration projects in Upper Egypt, Anadolu news agency quoted Petroleum Minister Sherif Ismail as saying on Sunday.
While few in number, the prospective contracts were welcome given Egypt's current economic situation, Ismail added.
The minister said that 20 areas are currently available for oil excavation in Egypt's eastern and western deserts as well as the Red Sea region. The Egyptian General Petroleum Corporation and its subsidiaries are currently focusing on developing those areas to meet annually-soaring domestic demand, he added.
Local demand on petroleum products in Egypt has recorded an average annual growth rate of five percent. Daily production of oil and condensates stands at nearly 680,000 barrels, in addition to 6.7 billion square feet of natural gas.
A senior official at the state-run Ganoub El Wadi Petroleum Holding Company, speaking on condition of anonymity, told the agency that successful contracts will be announced in September.
The official revealed that Shell is among the companies that have submitted offers for the Red Sea region. Australian Pura Vida Energy NL has also made offers for one of the regions, said the official. He said the Australian firm had previously won a tender by the Egyptian Natural Gas Holding Company (EGAS) in April.
Ganoub El Wadi’s deputy director for excavations and contracting, Abu Bakr Ibrahim, said a technical and financial panel will be formed to assess the offers, predicting that operations would start next year after financial and technical procedures are completed.
Ganoub El Wadi has already signed 23 excavation agreements.
Edited translation from Al-Masry Al-Youm
