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JEDDAH: Egypt has signed three oil and gas agreements worth over $121 million with international firms, boosting its energy sector through new exploration and drilling projects across key hydrocarbon zones.

The move is part of the Ministry of Petroleum and Mineral Resources’ strategy to attract international investment and expand exploration activities in the North African country.

Karim Badawi, minister of petroleum and mineral resources, witnessed the signing of the agreements by the Egyptian General Petroleum Corp. with several leading international firms active in oil and gas exploration and production.

In August 2024, Egypt unveiled a new set of incentives to stimulate exploration and development, increase output, and reduce the gap between domestic supply and demand.

More than 60 international companies currently operate across 183 exploration and production sites in the Mediterranean Sea, Nile Delta, and Western and Eastern Deserts, as well as Sinai and Upper Egypt, under the oversight of companies affiliated with the Ministry of Petroleum.

“The first agreement reassigns the North Sinai offshore area to Perenco Egypt, with investments of $46 million to drill three wells and a signing bonus of $1 million,” the ministry said in a statement, carried by the Egyptian Cabinet.

The deal was signed by Salah Abdel Karim, CEO of EGPC, and Raafat El-Beltagy on behalf of Perenco, in the presence of Jon Rokk, CEO of Egypt Kuwait Holding Company, the parent company of Perenco Egypt.

The second agreement covers the East El Hamad area in the Gulf of Suez, favoring the Dubai-based Dragon Oil following its success in the EGPC bidding round. 

Investments for drilling three wells total $40.5 million, with a signing bonus of $4.5 million. The deal was signed by Abdel Karim and Tayeb Huwair, chief operating officer of Dragon Oil, and attended by Abdulkarim Ahmed Al-Mazmi, the company’s CEO.

The third agreement is with Apache Corp., covering the integrated exploration and development area in the Western Desert by adding five new exploration blocks. 

The deal includes $35 million in investments for drilling 14 wells, along with a $25 million signing bonus, and was inked by Abdel Karim and Greg McDaniel, senior vice president of international assets at Apache.

“Following the signing, Karim Badawi emphasized that these agreements reflect the growing confidence of international companies in Egypt’s petroleum investment climate.” the statement said.

The minister added the deals highlight the ministry’s success in offering attractive bidding opportunities and implementing incentive policies that have opened new avenues for exploration, supporting the ministry’s plans to increase production and secure domestic market needs.

These agreements form part of a broader push by Egypt to attract foreign investment in oil and gas, with the government recently approving $221 million in contracts covering the Western Desert, Gulf of Suez, and North Damietta Marine area in the Mediterranean.

The deals, which include at least 24 wells and a $31.5 million non-refundable signing bonus, reflect Egypt’s ambition to reinforce its position as a regional energy hub.

Additional recent approvals for Lukoil and South Valley Egyptian Petroleum in the Eastern Desert further underscore the country’s strategy to expand exploration and production activities across multiple hydrocarbon zones.

RIYADH: ��������’s broad money supply climbed 8.4 percent in July from a year earlier, adding SR239.97 billion ($63.9 billion) to reach SR3.11 trillion, driven by higher deposits, official data showed. 

The liquidity gauge, known as M3, also advanced 2.1 percent quarter on quarter, rising to SR3.12 trillion by the end of June from SR3.06 trillion in March, the Saudi Press Agency reported, citing central bank figures. 

The pickup in money supply comes as the Saudi Central Bank, known as SAMA, balances liquidity management with efforts to support economic activity under Vision 2030.

Shifts in deposit structures also reflect the influence of interest rates and financial incentives on savings behavior. 

Demand deposits made up the largest share at 46.5 percent, or SR1.45 trillion, followed by time and savings deposits at SR1.12 trillion, accounting for 36.1 percent. Quasi-monetary deposits stood at SR296.72 billion, while currency in circulation outside banks reached SR242.34 billion. 

“Quasi-monetary deposits include residents’ deposits in foreign currencies, deposits against letters of credit, outstanding remittances, and repurchase agreements (repos) executed with the private sector,” the SPA report stated. 

The money supply is categorized into three measures: M1, which includes currency in circulation outside banks in addition to demand deposits; M2, which consists of M1 plus time and savings deposits; and M3, the broadest definition, which adds other quasi-monetary deposits. 

The data highlights a steady shift toward interest-bearing savings, with time and savings deposits expanding faster than demand deposits in recent months. In June, M3 touched a record SR3.12 trillion, up 7.63 percent year on year, marking the highest share of savings deposits in more than a decade. 

Another recent trend is the accelerated growth in time and savings deposits, which has been outpacing demand deposits. 

After peaking at 6 percent, SAMA reduced its repo rate in stages — first to 5.5 percent in September 2024, then to 5 percent in December — in line with US monetary policy.

Despite the cuts, rates remain high compared with previous years, making fixed-term, interest-bearing accounts more attractive than demand balances. 

The US Federal Reserve’s next meeting is set for Sept. 16-17.