Egypt to Reconsider Petroleum Contracts

Egypt to Reconsider Petroleum Contracts

The Egyptian Ministry of Petroleum and Mineral Resources established a joint committee to revisit exploration and production (E&P) contracts in order to incentivize international oil companies (IOCs) to operate in Egypt’s petroleum sector, Daily News Egypt reports.

The committee will consist of representatives from Egyptian Natural Gas Holding Company (EGAS), Egyptian General Petroleum Corporation (EGPC), and Ganoub El Wadi Petroleum Holding Company (Ganope). It will also include an international consultant, according to Arab Finance.

The committee will examine petroleum agreements around the world and develop a new agreement format for Egypt, an industry source told Daily News Egypt. The new agreement format is to be completed by the end of 2018.

In order to encourage increased investment in the petroleum sector, the committee will consider increases to the IOCs’ share of production and quicker reimbursement.

The committee has already reached out to IOCs operating in Egypt for suggestions and will take these suggestions into consideration while reformulating the current agreement model.

Sarah Samir 3420 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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