LUKoil will boost spending on Egyptian oil and gas projects to compete for market share in Africa with BP and Royal Dutch/Shell. LUKoil, which last year agreed to explore and develop two Egyptian oilfields in the Gulf of Suez, wants to bid for more fields when the country offers them, said Andrei Kuzyaev, president of LUKoil Overseas Holding. The company expects to invest as much as USD 400 million in Egypt as it attempts to boost production abroad to about 15% of its total output within a decade. Egypt expects to attract USD 20 billion in direct foreign investment for its energy industry by 2007 to raise output. – Egypt is also looking for an investor to spend as much as USD 300 million to extend its gas pipeline to Jordan by 393km. The pipeline can ship 10 billion cubic meters of gas a year. Egyptian Gas plans to extend the pipeline to Syria and possibly to Turkey. LUKoil plans to drill two exploration wells in Egypt this year, one at each of the Suez fields. It agreed to invest about USD 343 million to explore and develop the NE Geisum and West Geisum oilfields in the Gulf of Suez in Egypt. The fields may hold as much as 423.8 million barrels of oil reserves, according to LUKoil.
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