President Abdel Fattah Al-Sisi authorized the Minister of Petroleum and Mineral Resources to contract the Egyptian General Petroleum Corporation and Shell Egypt for exploration and production (E&P) in the Western Desert, Almasry Alyoum reported quoting the Official Gazette.
According to the presidential decree, Shell would implement E&P activities in West Fayoum concession in the Western Desert.
The exploration practices should include geological, geophysical, aerial and other surveys as may be contained in the approved Work Programs and Budgets in addition to the drilling activities and purchase or acquisition of such supplies, materials, services and equipment, the agreement stated.
Furthermore, development activities will include all operations drilling, plugging, side tracking, re-drilling, completing, equipping of development wells, according to the agreement. It, also, includes design, engineering, construction, installation and maintenance of equipment in addition to transportation and storage work.
The decree stipulated that an initial exploration period of four years shall start from the Effective Date.
One successive extension to the initial exploration period, of three years respectively, shall be granted to contractor at its option.