Egypt’s Ministry of Petroleum and Mineral Resources and the Egyptian General Petroleum Corporation have signed new concession agreements with TransGlobe Energy and Pharos Energy to carry out E&P activities in the eastern and western desert regions.

The contracts carry a minimum total investment of $506 million. In addition, the two exploration firms will receive a $67-million grant to conduct a 12-well drilling campaign.

Canadian independent TransGlobe is already active in the country, with 100% working interests in four Production Sharing Concessions. The new contract seeks to integrate and exploit the company’s existing assets in North West Gharib, West Ghareb and West Bakr, along with facilitating the injection of new capital into upstream exploration.

London-based independent Pharos Energy has also concentrated its assets in Egypt and will target the exploration and production of crude oil in the Fayoum region in the Western Desert.