Minister of Petroleum Tarek el-Molla signed a new petroleum agreement with German company DEA, with investment worth $20 million.
Petroleum Ministry clarified in a statement Thursday that the agreement is to explore oil and gas in Ras Badran and Khaleeg el Zeit in the Gulf of Suez to implement development programs and increase petroleum production.
The agreement stipulates the commitment of the German company to carry out drilling activities and development of production facilities, operation and maintenance of the extraction plant in the Gulf of Suez; the whole production of Butane will be transferred to the Petroleum Authority.
Molla said that the petroleum sector adopts an all-out strategy to encourage energy investments, and guarantee security and energy sustainability.
He further referred to the keenness of DEA and international companies to pump more investments into Egypt which proves the foreign partners’ confidence in the Egyptian petroleum sector and its great potentials to boost production through new discoveries.
The minister noted that the fruitful partnership with DEA has lasted for more than 45 years and contributed to upping production of gas and petrol in its operation areas.
He added that the ministry will sign more agreements to boost investments.
For his part, the DEA director general in Egypt Sameh Sabry said Egypt’s efforts to develop the oil sector managed to lure investments, adding that DEA Company injected about $800 million in the Gulf of Suez, Desouq and northern Alexandria in 2017 and 2018.
He added that the company plans to pump additional $700 million- investments within the coming three years.
Earlier, an official source at the Petroleum Authority that the volume of joint foreign investments that were pumped during 2018 in the petroleum sector recorded $5.7 billion.
Also, an official source at the Petroleum Authority said that seven agreements were signed to explore petrol and gas with minimum investments of $162 million during 2017/2018.
The source elaborated that procedures of 10 new agreements were completed during July and August 2018, noting that 19 contracts were signed to develop the discovered fields until August 2018 in order to support the targeted plans to increase the production of petrol and gas.