Germany's Wintershall Dea inks deal for exploration block in Egypt

London — Germany's Wintershall Dea signed Monday an exploration deal for the East Damanhour block in Egypt and plans to drill several exploration wells in the first three-year phase of the agreement.

East Damanhour is next to Wintershall Dea's existing onshore Disouq gas development and the company hopes that means "a quick and cost optimized development of any discovered volumes".

Egypt has seen a major increase in gas exploration and production activities in recent years, with the super-giant 30 Tcf Zohr field evidence of Egypt's vast gas resources.

"Great potential is seen in the Eastern Mediterranean region when it comes to undiscovered gas resources," Wintershall Dea CEO Mario Mehren said in a statement.

"It is an interesting region and Egypt is well-positioned to serve as an energy hub due to its established export facilities, which offer convenient export routes," Mehren said.

Wintershall Dea, through its predecessor Dea, started operations in Egypt in 1974 and the country is a core area for the company, it said.

It said it had invested "significantly" in its operated projects in Egypt in recent years including comprehensive work programs at Disouq, which has led to an improvement in production.