Egypt awards oil and gas exploration blocks

Egypt has signed oil and gas exploration deals worth $187 million with several Western companies and a Tunisian firm, the petroleum ministry said on Friday.

The agreements cover seven exploration areas. Germany's RWE won two exploration blocks in the Gulf of Suez, while Tunisia's HBSI, Canada's TransGlobe and Italy's Edison secured five blocks in Egypt's western desert.

In December, Egypt's General Petroleum Corporation (EGPC) and Natural Gas Holding Company (EGAS) announced an international auction for oil and gas exploration concessions in accordance with production sharing agreements.

The concessions are for areas in the Suez Canal, Egypt's western desert, the Mediterranean sea and the Nile Delta, the state-owned firms said.

Exploration companies have been hesitant to develop untapped gas finds in Egyptian waters partly because the amount the government pays them barely covers their investment costs.