EGAS to Sign Seven Agreements Worth $690 MM in FY 2020/21
EJYPTE OIL AND GAS Thursday, 27th February 2020
the Egyptian Natural Gas Holding Company (EGAS) targets to sign seven agreements with a cost of $690 million and a signature bonus estimated at $16 million, EGAS Chairman Osama El Bakly said while discussing the company’s planning budget for Fiscal Year (FY) 2020/21, according to a press release.
El Bakly clarified that the budget includes drilling 10 wells with a cost of $328 million, as well as signing four development contracts with total signature bonuses of $20 million.
Moreover, he added that two new projects are planned to be implemented, in addition to completing the project of drilling four wells, as well as drilling 38 development wells with an initial production of 537 million cubic feet of natural gas per day (mmcf/d).
Additionally, he explained that by these projects, the average production is anticipated to reach about 7.5 billion cubic feet per day (bcf/d) of natural gas and more than 100,000 barrels of condensates.
Furthermore, the chairman noted that it is planned in FY 2020/21 to deliver natural gas to more than 1.2 million housing units across Egypt with investments of around EGP 4.7 billion.
In addition to that around 100 manufactures and 1,000 commercial clients are expected to be connected to the national gas grid, as well as transforming 50,000 vehicles to run on natural gas and establishing 36 supply stations.