This is reflected in allocating a portion of the revenues resulting from the increase above the current production level to offset part of the partners’ dues.
The Ministry of Petroleum and Mineral Resources announced that the Egyptian Natural Gas Holding Company (EGAS) has launched a new global bidding for the year 2024 to search for natural gas and crude oil in 12 sectors in the Mediterranean Sea and the Nile Delta, including 10 marine sectors and two land sectors.
This bid comes within the framework of the efforts of the Ministry of Petroleum and Mineral Resources to attract new investments to Egypt, in accordance with its strategy aimed at exploiting promising opportunities in the field of searching for gas and oil.
Minister of Petroleum and Mineral Resources, Karim Badawi, announced a new incentive package aimed at encouraging increased production of crude oil and natural gas.
Badawi pointed out that this step reflects the petroleum sector’s keenness to improve the petroleum investment climate and encourage partners to pump more investments, which leads to increased production of gas and crude oil.
The minister clarified during an extensive meeting with petroleum production partners from international companies that these incentives include new mechanisms linked to achieving an increase in production above current levels, as well as an increase in exploratory drilling, development activities, and production operations.
This is reflected in allocating a portion of the revenues resulting from the increase above the current production level to offset part of the partners’ dues.
This incentive also will provide this increase in gas and petroleum to narrow the gap between local production and consumption, and contribute to reducing the monthly import bill, thus providing more financial resources for both parties.
This helps to enhance investment in research, exploration, and production activities, and achieve returns for the state.
