BP Will Explore Oil In Egypt

Ministry of Petroleum of Egypt Sameh Fahmy signed two agreements with BP for exploration and production in the Gulf of Suez.

The first agreement is for petroleum exploration over a 1,174 square kilometer block of the Northern Shedwan area in the Gulf of Suez. BP has agreed to spend a minimum of $20 million and will dig four wells over a nine-year period. The second agreement is for an amendment to the natural gas pricing system connected to BP's offshore concession of East Tanka in the Gulf of Suez.

Fahmy said the amendment is a safeguard for Egypt from extreme fluctuations in global oil prices, but didn't elaborate.