the Egyptian Natural Gas Holding Company (EGAS) targets to sign seven agreements with a cost of $690 million and a signature bonus estimated at $16 million, EGAS Chairman Osama El Bakly said while discussing the company’s planning budget for Fiscal Year (FY) 2020/21, according to a press release.
El Bakly clarified that the budget includes drilling 10 wells with a cost of $328 million, as well as signing four development contracts with total signature bonuses of $20 million.
Moreover, he added that two new projects are planned to be implemented, in addition to completing the project of drilling four wells, as well as drilling 38 development wells with an initial production of 537 million cubic feet of natural gas per day (mmcf/d).
Additionally, he explained that by these projects, the average production is anticipated to reach about 7.5 billion cubic feet per day (bcf/d) of natural gas and more than 100,000 barrels of condensates.
Furthermore, the chairman noted that it is planned in FY 2020/21 to deliver natural gas to more than 1.2 million housing units across Egypt with investments of around EGP 4.7 billion.
In addition to that around 100 manufactures and 1,000 commercial clients are expected to be connected to the national gas grid, as well as transforming 50,000 vehicles to run on natural gas and establishing 36 supply stations.
El Bakly, also, showcased the plans of H2 FY 2019/20. He remarked that EGAS aims at drilling five exploratory wells and starting to drill four wells for Ayok, Burullus, Edison, and Sea Dragon at the Mediterranean with a cost of $179 million. Besides implementing three projects including nine wells, putting five development wells on the production line, delivering natural gas to 86 areas and transforming 25,000 vehicles to run on natural gas.
For his part, the Minister of Petroleum and Mineral Resources, Tarek El Molla, said that there are ambitious programs under implementation to increase the rate of natural gas production.
He noted that the ministry has put strategies to attract more investments to enhance the exploration and production (E&P) activities, implement new projects, launch international bids and sign new agreements.
This came during the general assembly meeting of EGAS headed by the minister and was attended by several official executives of the petroleum sector.