Nicosia, March 22: Egyptian Petroleum Minister Sameh Fahmy has signed two oil and gas exploration agreements with the Gujarat State Petroleum Corporation (GSPC).

The agreements were signed for blocks in the Western Desert and in the offshore East Mediterranean.

Under the agreement, the GSPC will have to drill 20 wells and invest some 470 million dollars in oil and gas exploration.

The agreement involves a licence to explore for oil in an offshore area covering 4,180 square kilometres in North Hap’y in East Mediterranean and another 37,678 square kilometres in South Diyar Block in the Western Desert.

In the in the offshore East Mediterranean case, the permit is being held by the Egyptian Natural Gas Holding Company, while in the second it is being held by the Ganoub El-Wadi Holding Petroleum Company.

GSPC is responsible for India’s largest gas find in the Krishna Godavari (KG) basin and the construction of India’s first land-based drilling platform, Ratnakar, at Hazira. GSPC also is equipped with an enviable international portfolio with exploration acreage in Egypt, Yemen and Australia.

Other Indian energy companies like Reliance Industries and Essar Global have also shown a keen interest in carrying out energy projects in Egypt. The two companies are currently negotiating with the Egyptian Government in connection with large refining projects.