RusEnergy

Nov. 29, 2006 – Kommersant – NOVATEK has sealed understanding memoranda with Egypt’s EGAS and Tharwa Petroleum to carry out geological survey and produce gas in the country. For NOVATEK, it is the first overseas project. The company managed to get it once it sold 19.9 percent to Gazprom, which plans specified the partnership with EGAS.
NOVATEK Board Chairman Leonid Mikhelson has sealed in Cairo the understanding memoranda with Egypt’s EGAS and Tharwa Petroleum. The documents spell out geological survey and subsequent production of gas in the western Egypt (close to border with Libya) and from the shelf of the Mediterranean Sea.
NOVATEK didn’t comment on the Egypt’s agreements yesterday, nor did Gazprom. But a source familiar with progress in negotiations said the parties will set up a venture to be launched in 2007. NOVATEK and its Egypt’s partners haven’t agreed on the shares and investments yet, the source specified.
For NOVATEK, the entry into the market of Egypt is the first overseas undertaking. Of interest is that, in March of 2005, Gazprom concluded a similar memorandum with EGAZ but that document didn’t lead to some definite agreement.
This time, Gazprom will share Egypt with NOVATEK, the analysts speculate. The monopoly will focus on exporting gas from Egypt, while its subsidiary will be stepping up gas production there.