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Egypt signs agreement with Kuwaiti company to search for oil

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Staff writer ▼ | October 2, 2015
Egypt has signed an agreement with a Kuwaiti energy firm to search for oil outside its own borders for the first time, an oil minister said.
Egypt oil
Energy business   Egyptian officials would like to return as an oil exporter
The deal, reached with Kuwait Energy, puts 10 percent of an area in Basra, southeast of Baghdad in the hands of Egypt, Middle East Monitor reported.

The deal comes as Egyptian officials have sought to boost the Egyptian economy as the country has continued to struggle with an energy crisis since a 2011 uprising forced out President Hosni Mubarak.

The country has since experienced a gas shortage, frequent power outages and widespread economic instability, which has lightened in the last year as Gulf States have stepped in to help meet energy demands.

Egyptian officials would like to return as an oil exporter, but in the meantime, the deal reached with the Kuwaiti firm "is seen to meet the domestic needs for energy consumption as well as raising the country's revenues on the back of diversifying petroleum investments," the country’s minister of petroleum, Tarek El-Molla, said in a statement, according to Ahram Online.

Kuwait Energy, a private firm founded in 2005, produces oil and gas throughout the Middle East and North Africa.