The pilot fracking scheme that was announced by the Egypt’s Petroleum Ministry last week will take between two and three years, according to the UK/Dutch Shell Group, which owns a 52 per cent stake in the scheme.

US energy company Apache holds the other 48 per cent, and will operate the pilot project.

The contract is the first Egypt has signed for the production of unconventional oil and gas and will see pilot work carried out in the Apollonia formation of the Northeast Abu el-Gharadig (NEAG) licence area, located in Egypt’s Western Desert.

In an emailed statement to MEED, a Shell spokesperson said: “Shell and Apache have reached an agreement with the Egyptian General Petroleum Corporation (EGPC) to begin a pilot project… During the pilot, the project partners will use state-of-the-art technology to test the future viability of shale/tight gas reserves within the NEAG concession area.”

The contract will see Apache and Shell invest $30m-$40m in the project, according to Egypt’s Petroleum Ministry.

Egypt is currently struggling with its worst gas crisis in decades as domestic production declines due to underinvestment from foreign oil companies.