Egypt’s Ministry of Petroleum and Mineral Resources announced today that it has signed two agreements with international companies, Shell and Cheiron Energy, to invest a combined $340 million in boosting oil and gas production in the Mediterranean Sea and the Gulf of Suez.

The agreements were signed following a series of meetings between Minister of Petroleum and Mineral Resources, Karim Badawi, and executives from Shell and Cheiron Energy. These meetings aimed to accelerate investment in Egypt's oil and gas sector and increase production.

The new agreement with Shell involves an additional investment of $222 million in the tenth phase of the West Delta Deep Marine project, which is expected to increase production and recoverable reserves. The agreement includes plans to drill three new production wells and construct offshore facilities.

Cheiron Energy, another major player in Egypt's oil and gas sector, has also committed to increasing its investment in the country. The company has signed an agreement to invest $120 million in the Gesum and Touila West area in the Gulf of Suez.

This investment will fund the drilling of nine wells, including three exploration wells, and is expected to increase production from 21,000 barrels of oil per day to 26,000 barrels per day.

Badawi underscored the need for a multifaceted approach to enhance oil production. This includes a concerted effort in research and exploration to expand oil reserves, increase production capacity, and develop necessary infrastructure.

Additionally, the minister highlighted the importance of revitalizing older oil fields to sustain production levels.

He stressed the crucial role of advanced technologies in optimizing these efforts and maximizing the potential of available resources. Furthermore, the minister emphasized the significance of reducing production costs to improve the overall economic viability of the oil industry.