Egypt has signed an agreement with the American Apache Corporation in which the company will invest in the energy sector, which is a vital sector, according to a press release from the Egyptian Ministry of Petroleum and Mineral Resources on Monday.
The ministry said the US company has committed under the agreement to spend a minimum of US$3.5 billion on research, exploration, development and production in the Western Desert concession areas of Egypt.
The agreement was signed by Tarek al-Molla, Minister of Petroleum and Mineral Resources, and Abed Ezz al-Regal, CEO of the Egyptian General Petroleum Corporation (EGPC), and David Chi, Vice President of the American company “Apache” and general director of the company in Egypt.
The agreement is part of joint development and modernization efforts between the two parties by merging the concession areas of “Khaleda” and “Qarun” oil companies, which are in charge of operations on behalf of EGPC and Apache, which helps to increase efficiency, optimal capacity investment and the achievement of excellence in the face of ongoing developments.
The deal also paves the way for maximizing crude oil and natural gas production rates, in light of the agreement to pump more investment into concession areas in the Western Desert and expand using the latest technologies applied in the fields of research, drilling and manufacturing.