Egypt has signed new agreements, with Transglobe Energy and Pharos Energy, for oil exploration and production in the eastern and western deserts.

The deals allow the two firms to explore, develop, and produce petroleum, leveraging latest technologies, with a total investment of at least $506m.

The agreements also include a $67m grant to the two companies to drill 12 oil wells.

The new concession agreement with Canada’s Transglobe features the integration of concessions in North West Gharib, West Ghareb, and West Bakr, in the eastern desert region, and the injection of new investments for the exploration and production of crude oil, reported Ahram Online

Transglobe president and CEO Randy Neely said: “This agreement with the Egyptian General Petroleum Corporation resets the TransGlobe business in Egypt. Not only does it give us the added time to exploit the existing producing fields to their maximum potential, including the pursuit of identified contingent resources, the improved fiscal terms incentivise TransGlobe to continue to invest across our Eastern Desert portfolio.”

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By GlobalData

Under the second agreement, Pharos Energy will fund the exploration, development, and production of crude oil in the Fayoum region, in the western desert region.

Minister of Petroleum and Mineral Resources Tarek El Molla said that the deal with Pharos comes as an extension to the agreements that were signed recently with oil companies operating in the country.

The two agreements come just weeks after the award of eight oil exploration blocks to Eni, Ina, Apex International, Energy Egypt, British Petroleum, United Energy, and Enap Sipetrol.

Earlier this month, Egypt said it plans to invest approximately $1.3bn to search for oil and natural gas at nine new sites in the Mediterranean and Red Seas.