Egypt Awards 8 Oil, Gas Exploration Blocks to International Companies

Egypt Awards 8 Oil, Gas Exploration Blocks to International Companies
TT

Egypt Awards 8 Oil, Gas Exploration Blocks to International Companies

Egypt Awards 8 Oil, Gas Exploration Blocks to International Companies

Egypt has awarded eight oil and gas exploration blocks in the Mediterranean, Western Desert, and the Gulf of Suez to international oil companies, according to a statement from the Petroleum Ministry on Monday.

The awarded companies are Eni, British Petroleum, Apex International, Energean Egypt, INA Nafta, Enap Sipetrol and United Energy, the statement read.

The companies are to invest a minimum of $250 million and drill at least 33 exploration wells in an area estimated at 12.3 thousand square kilometers.

The Ministry launched the bid on the new digital platform, Egypt Upstream Gateway, in February to ramp up exploration and boost production from its hydrocarbon assets.

Minister of Petroleum and Mineral Resources Tarek al-Molla said that the international tender has achieved positive results in attracting new investments, in light of the current global health situation.

The Gateway has contributed to facilitating international companies’ access to all geological and geophysical data for all regions.

The announcement comes one week after the agreement Cairo signed with the American Apache Company, under which the company will invest $3.5 billion on research, exploration, development and production in the Western Desert area.

Late in December, Egypt also signed a $1 billion agreement with the Italian energy company Eni, for oil exploration in the Gulf of Suez and Nile Delta region.

Under the agreement, Eni is committed to spend at least an additional $20 million to drill four new wells.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.