Since 1979, Egypt through the Ministry of petroleum tried to resolve several important issues to encourage gas development in the country.
The most principal issues were the following :-

Production sharing agreements between the government and the concessionaire as an incentive to encourage International Exploration Companies to invest in gas exploration and development.

Promoting the gas utilization in the local market. Applying cost recovery and profit sharing of gas.

Commercial terms: base price and indexation (for local market ).

The following are some of the new issues being carried out or negotiated with the partner :

1. Substantial amendments to the current Egyptian production sharing model agreement is the first challenge to cope with the needs of the producer ( Concessionaire ) who aims at getting fair profits to compensate for his exploration and production risks, and the buyer who expects a compatible and reasonable price of gas. Both EGAS and EGPC are studying the proposed amendments with the supervision of the Ministry of Petroleum who is trying to stimulate gas developments with more attractive fiscal terms.
2. To meet the high risk involved in exploring the potentials of frontier areas or the ultra deep water, several phrases in the model agreement are added to encourage the use of the high technology available at the international companies R & D centers.
3. One international bid round or more is scheduled on a yearly basis in order to accommodate all the open acreage available in the gas prone areas in the Mediterranean Sea, Nile Delta and Western Desert, in order to secure continuous aggressive exploration campaigns capable of revealing the most likely reserves into proven.