Cairo tenders new southern blocks

07 June 2004
State-owned Ganoub el-Wadi Petroleum Company (Ganope)has released for tender five new exploration blocks in the south of the country, two of which are located in the Western Desert, close to the border with Libya, and the remaining three offshore blocks in the Red Sea, close to the southern tip of the Sinai. The new bid round, the second to be issued by Ganope since it was set up as an upstream holding company by the Petroleum Ministry last year, follows the award of all three blocks from the July 2003 round, two of which were ratified by the People's Assembly in early May (MEED 7:5:04).

The two biggest blocks on offer, the 36,852-square-kilometre South Diyur concession and the 28,718-square-kilometre South Siwa concession, are in the far northeast of Ganope's area of responsibility, which covers the whole of Upper Egypt beneath the 28th parallel. The three smaller concessions are East Magawish, a 28-square-kilometre concession on the Red Sea coast, the 234-square-kilometre North Hurghada marine concession and the 3,800-square-kilometre South Sinai offshire concession. Data packages for the blocks will be available from Ganope from 1 July and bids are due on 16 November.

Following an agreed exploration period, companies will have the option to take up a 20-year development lease after the first discovery of hydrocarbons, with an optional five-year extension period.

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