Cairo – Mubasher: The Egyptian Natural Gas Holding Company (EGAS) aims to sign seven new agreements with total investments of $690 million during fiscal year 2020/2021, the company’s chairman Osama El-Bakly said.
The company also plans to drill 10 wells in the Nile Delta and the Mediterranean Sea with combined investments of $328 million as well as signatures bonuses of $16 million during the exploration period, El-Bakly added in a statement released by the Ministry of Petroleum on Thursday.
The plans also include signing four development contracts with signature bonuses of $20 million, establishing two new projects, and resuming the implementation of another for a total of four wells, along with 38 development wells with an initial production of about 537 million cubic feet per day.
This will raise the average output to about 7.5 billion cubic feet of gas per day and more than 100,000 barrels of condensates.
El-Bakly further revealed that more than 1.2 million residential units in different governorates are expected to be supplied with natural gas with an investment cost of EGP 4.7 billion during FY20/21.
In addition, the plan involves supplying 100 factories and 1,000 commercial customers with natural gas, converting 50,000 cars to run on natural gas, and building 36 new natural gas fuelling stations.
During the first half of FY19/20, EGAS drilled five exploratory wells and plans to drill another five wells with total investments of $234 million.
In addition, five oil and gas deals were signed with major international companies and two new deals are being finalised.
Over the July-December period of 2019, EGAS established and resumed the establishment of eight projects and put three development wells into production with an initial output of 1 billion cubic feet per day.
As for the second half of FY19/20, EGAS aims to resume the drilling of five exploratory wells and start drilling four wells in the Mediterranean Sea and the Nile Delta with expected investments of $179 million.
The Egyptian company plans to implement three projects for a total of nine wells, put five development wells into production with an initial output of 1.2 billion cubic feet per day, supply 570,000 residential units with natural gas, build 15 natural gas fuelling stations, and convert 25,000 cars to run on natural gas.
