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

The contracts require a minimum investment of $506 million in total. A $67 million grant will also be given to the two exploratory companies to execute a 12-well drilling campaign.

TransGlobe, a Canadian company, is already involved in the country, owning 100% of four Production Sharing Concessions. The new contract will help the company integrate and develop its current assets in North West Gharib, West Ghareb, and West Bakr, as well as facilitate the injection of new funds into upstream exploration.

Pharos Energy, a London-based independent, has likewise concentrated its assets in Egypt and will focus on crude oil exploration and production in the Fayoum region of the Western Desert.