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Egypt’s state-run oil firm EGPC has rubber-stamped a deal to farm-in to Kuwait Energy’s (KEC) Block 9 in Iraq’s southern Basra region, marking the first time Egypt will be exploring for oil outside its own borders.
Production is slated to begin later this month at a rate of around 5,000 b/d, rising to 25,000 b/d by end-2016, and to 150,000 b/d by 2020-21.
The deal was reported as early as last year, but Egypt’s newly-appointed Petroleum Minister Tarek El Molla (MEES, 25 September), was keen to highlight the potential it could hold for Cairo.
“The agreement opens the road for the first time to the oil sector to pursue new sources of oil and gas outside of Egypt, similar to those pursued by many other countries around the world,” he says. Mr Molla adds that it will also help Egypt increase its oil and gas reserves, and open up new opportunities for Egyptian oil firms to operate abroad. (CONTINUED - 374 WORDS)