Egypt’s Ministry of Petroleum signed a $43 million gas exploration deal with Wintershall Dea in Nile Delta on Monday.
Signed between the Ministry of Petroleum, the Egyptian Natural Gas Holding Company and Wintershall Dea, the agreement targets the exploration of Nile Delta’s East Damanhour exploration block and provides for $11 million in grants for the drilling of eight exploration wells.
The agreement reflects Egypt’s ambitions to become a regional gas hub through the exploration of its abundant liquified natural gas reserves. It also represents the first deal by the German oil and gas producer since the merger between Wintershall and Dea in May last year.
Wintershall Dea currently holds stakes in six onshore and offshore concessions, as well as serves as a partner in the West Nile Delta project, which involves the development of gas and condensate fields located within the North Alexandria and West Mediterranean deepwater concessions.
According to H.E. Minister of Petroleum Tarek El-Molla, the Ministry has signed 61 petroleum-focused agreements with investors and partners since 2016, totaling minimum investments of six billion dollars and the drilling of 230 wells.