Chevron and Egypt strike $88M offshore exploration deal

Egypt’s Ministry of Petroleum and Mineral Resources has announced a new $88 million investment agreement between the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings Ltd. The deal focuses on oil and gas exploration in the Lotus offshore area of the Mediterranean Sea, located about 200 kilometers from the coast. The agreement includes drilling two exploratory wells and reprocessing three-dimensional seismic data in an area with water depths ranging from 2,000 to 2,800 meters.

Karim Badawi, the Minister of Petroleum and Mineral Resources, emphasized that expanding Egypt’s exploration map is a priority for the ministry. He noted that efforts to resolve investment partners’ dues have boosted confidence in the sector, encouraging companies to increase their investments and resume exploration activities. The ministry continues to offer new exploration areas to international firms and leverages available geological and seismic data alongside new surveys.

The agreement was signed by EGAS Executive Managing Director Sayed Selim and Chevron Exploration Manager Andrew Degan. Chevron currently holds investments in six offshore exploration areas in Egypt, including partnerships with Shell in regions like North Cleopatra and North El Dabaa. In April, the Egyptian Cabinet approved a draft concession agreement for the Lotus area, requiring a minimum investment of $85 million.