Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, witnessed the signing a new geophysical contract by Ganoub El Wadi (Ganope), Schlumberger, and TGS, Egypt Oil& Gas reported.

The contract includes conducting geophysical studied on Egypt’s Red Sea territorial water and on Upper Egypt with total investments $750 million.

The Saudi-Egyptian demarcation opens a way for Egypt to explore the Red Sea for oil and gas for the first time, which was impossible before the demarcation, El Molla, said.

The contract was signed by Ganope’s Head, Sherif Sousa, Schlumberger’s Regional Head, Hussein Fouad Ghazy, and TGS’ Regional Head, Simon Bowen.

The geophysical data collection reflects the confidence the international oil companies (IOCs) in the government’s economic reforms, and it will attract investments and open new exploration opportunities, which will make a difference in the Egyptian oil and gas industry, El Molla  further explained.

The first contract was awarded to WesternGeco, which is a joint company between Schlumberger and TGS, to explore in Upper Egypt, Sherif Sousa pointed out. Ganope’s Head added that the company studied the techniques followed in similar projects before launching the Upper Egypt and Red Sea project, and then it chose the best techniques that enables the companies to offer the recent technologies, especially as the data of Upper Egypt and Red Sea is rare.

WesternGeco is keen to work on the project as it opens the way to explore the Red Sea potential, the company’s Head further stated, adding that the firm is committed to conduct the data collection as soon as possible and that it has the technology required for that.