Bloomberg News

Egypt to Postpone Bid Results for Oil, Gas Rights Until August

July 05, 2012

Egyptian General Petroleum Corp. plans to postpone until August the announcement of results from a bidding round for oil and natural-gas rights that closed in March.

The one-month delay will give the state-owned company more time to evaluate the offers, especially because some bidders are new to Egypt, Deputy Chief Executive Officer for Agreements Adel Kamel said today in a telephone interview from Cairo. The company, also known as EGPC, is assessing 25 offers after it invited bids in September, the first such auction since July 2009, he said.

Egypt holds Africa’s sixth-largest oil reserves, at 4.3 billion barrels, and the continent’s third-biggest gas deposits, at 77 trillion cubic feet, according to BP Plc (BP/) data as of the end of 2011. The North African country is struggling to attract foreign investment since an uprising last year that ousted former President Hosni Mubarak.

A pipeline that supplied gas to Israel and Jordan was disrupted after multiple sabotage attacks in the eastern Sinai region, leading Egypt to annul its agreement to sell gas to Israel.

To contact the reporter on this story: Ola Galal in Cairo at ogalal@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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