Egypt announces new oil and gas concessions

31 December 2013

North African state to offer 22 onshore and offshore blocks

Egypt is set to auction 22 oil and gas concessions in several locations across the North African state.

The areas include the Suez Canal, the Western Desert, the Mediterranean and the Nile Delta. The concessions are being offered by the state-owned Egyptian General Petroleum Corporation (EGPC) and Natural Gas Holding Company (Egas).  

According to local media reports, the pricing mechanism of the deals may be changed, after Cairo accepted that the price it is willing to pay for the gas is too low.

Producers have not been prepared to invest in Egypt due to the low prices paid for the gas. If the payments are increased, it is likely international companies will be less hesitant to invest.

The auction is expected to be concluded by 19 May.

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