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Egypt has awarded a new oil concession to a local company within an ongoing drive to boost its hydrocarbon resources and reverse a production decline.
Cheiron, formerly known as PICO International Petroleum, will invest $30 million in four offshore oil wells in the Gulf of Suez under the agreement it signed with the state-owned Egyptian General Petroleum Corporation (EGPC).
Petroleum and mineral resources minister Karim Badawi said on the ministry’s website that the agreement represents a successful example of public-private partnership (PPP) in Egypt’s oil exploration and production sector.
Cheiron said the agreement covers the East Gemsa Offshore Area, located in the Gulf of Suez and includes a $1 million signature bonus.
In September, EGPC signed three new agreements with international companies to explore for oil and gas in the Western Desert, Gulf of Suez, and North Sinai regions with total investments of more than $121 million.
Established in the late 1980s, Cheiron is Egypt’s largest independent E&P company with assets in the Western and Eastern Deserts as well as the Nile Delta and the Gulf of Suez regions.
(Writing by N Saeed; Editing by Anoop Menon)
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