Shell will start drilling new oil exploration wells in its new concession areas in Egypt’s Mediterranean in September, with investments of over $80 million for the first well, a government official told Asharq Business.

The official said that Shell has concluded the seismic survey for the concession areas, namely Northeast Amriya offshore concession in the Nile Delta as well as North Sidi Gaber and North Al Fanar Concessions.

This is part of Shell’s plans to be a key energy hub in the region amid the ongoing power cuts for the shortage of gas supply needed to operate power stations.

Egypt approved $319 million deals

Egypt has reportedly approved three oil and gas agreements in the country, aimed at the drilling of multiple exploration wells, the country’s Cabinet said in a statement.

The multiple deals “include two projects to search for gas and crude oil in the Mediterranean Sea and one project to search for oil west of Gulf of Suez”, Reuters reported.
Egypt has lined up plans to drill for a total of 35 exploration wells in the next two years.

Speaking in Vienna earlier in July, Egypt’s Petroleum Minister Tarek El Molla said Eni, Chevron, ExxonMobil, Shell and BP would drill a combined 35 exploration wells between now and July 2025.

Of these wells, 21 will be drilled in the 2023-2024 fiscal year, with 14 to come in the following 12 months, he said during an interview with Emirates news agency WAM.