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Share Price: 471.00
Bid: 470.40
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Change: 0.50 (0.11%)
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UPDATE 1-Egypt extends Mediterranean gas exploration tender by two months

Tue, 26th May 2015 09:42

(Adds EGAS comment)

CAIRO, May 26 (Reuters) - Egypt has extended its tender fornatural gas exploration in the Mediterranean Sea by two monthswith the addition of four new blocks, the state gas board saidon Tuesday, as the country seeks to boost domestic energyproduction.

The bidding period now runs to July 30 and will include 12offshore concessions instead of eight, the Egyptian Natural GasHolding Company (EGAS) said in an advertisement published instate-run Al Ahram newspaper.

Egypt is going through its worst energy crisis in decades,with increasing consumption and declining production turning thecountry from a net energy exporter to a net importer over thepast few years.

The north African country has tried to tackle energyshortages by raising energy prices, building new power plants,importing liquefied natural gas (LNG) and encouraging moredomestic oil and gas production.

Egypt has extended tender periods in the past when there wasnot enough interest or when potential bidders requested moretime to complete evaluations.

EGAS vice-president Mahfouz al-Buny told Reuters the periodwas extended at the request of a number of companies who wantedfurther details on the blocks available, and to give firms timeto evaluate the four new blocks up for tender.

The four additional blocks are Northeast Habi Marine, NorthFarma Marine, North Tabiya Marine and Northeast Amiriya Marine,EGAS said.

The original eight blocks are West Arish Marine, East PortSaid Marine, North Rumana Marine, North Ras al-Ash Marine, Westal-Timsah Marine, South Taneen Marine, North Hammad Marine andEast Alexandria Marine.

The 12 blocks together cover a total of 20,548 square km(7,934 square miles).

The foreign companies already exploring for oil and gas offEgypt's north coast include Italy's ENI and Britain'sBP and BG. (Reporting by Ehab Farouk; Writing by Shadi Bushra; Editing byAlison Williams)

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