(MENAFN) Egypt said it agrees to revise the price it pays to buy natural gas to be extracted by German oil and gas group RWE DEA, according to the Peninsula Qatar.
The move is expected to cause a rise in oil gas prices in the country.
Egypt-based gas company EGAS has signed an agreement with RWE DEA to modify its current Delta concession contract. The contract aims to help the government to fulfill a pledge to provide more attractive terms to foreign firms needed to boost production.
Oil Minister Sherif Ismail said that the revisions aim to "strike a balance between the parties to the agreement regarding the costs of drilling, development, and production in these areas. Though he did not say how the prices would change, he said that the move was in the context of the government's aim of "matching the cost of development of some newly discovered gas fields."
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