Egypt invites E&P companies
By A Business Correspondent
Inviting global companies in oil exploration provides multifarious opportunities for accelerating growth in many countries. Besides saving on scarce resources these countries also pass on the high risk associated with the activity to the contracting companies. The production sharing agreements built in any standard agreements ensures significant economic gains in case of successful finds, onshore or offshore. Oil and gas finds not only provides much needed resources but also open up opportunities for developing upstream, downstream projects and petrochemical industries. It is therefore not surprising to find many countries seeking global participation. After tasting initial success repeat tenders are subsequently floated. Venezuela, Mexico, Brazil and of late even India have been aggressive in their drive to woo E&P companies.
Egypt is one of the latest to have floated such a tender. The Egyptian General Petroleum Corporation (EGPC) and The Egyptian Natural Gas Holding Company (EGAS) has invited Petroleum Exploration Companies for the International 2002 Bid Round to explore for oil and gas in Egypt under the Production Sharing Agreement. Thirty exploration blocks in different sedimentary basins of Egypt have been selected. The closing date of 2002 Bid Round Blocks is October 1, 2002, at 12:00 hrs.
Egypt had the foresight to undertake development of the oil fields since the last three decades. The success of the country's initiatives can be gauged from the fact that over the last 25 years from 1973-98, as many as 254 agreements were signed, including 191 agreements during the past 17 years with international companies. Currently, there are nearly 50 companies of diverse nationalities, for petroleum exploration in nearly 60 per cent of Egypt's areas.
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