EGAS and Chevron ink $88 million Mediterranean exploration deal

The Egyptian Natural Gas Holding Company (EGAS) and Chevron have inked an $88 million agreement to explore and develop natural gas and crude oil in the Lotus offshore block of the Mediterranean Sea. The deal, signed by EGAS Executive Managing Director Sayed Selim and Andrew Deighan, Chevron’s exploration director for the Middle East and North Africa, includes drilling two exploratory wells and reprocessing three-dimensional seismic data.

The Lotus block, located about 200 kilometers off Egypt’s Mediterranean coast with water depths ranging from 2,000 to 2,800 meters, has never been explored with deep wells. The Ministry of Petroleum and Mineral Resources sees the area as a promising frontier for new discoveries. The agreement is part of Egypt’s broader strategy to boost domestic oil and gas production by expanding exploration in key regions, including the Western Desert, Nile Delta, and Gulf of Suez.

Minister of Petroleum and Mineral Resources Karim Badawi emphasized that the deal reflects Chevron’s ongoing investment in Egyptian exploration. He highlighted recent efforts to settle outstanding payments to investment partners, which has restored confidence in the sector. Badawi also noted President Abdel Fattah El-Sisi’s support for mining and economic investments, reinforcing the government’s commitment to fostering a favorable environment for exploration and production.

Chevron is actively involved in Mediterranean exploration, with investments in six offshore blocks, including partnerships with Shell in the North Cleopatra block. The company’s previous exploration efforts in the region have led to discoveries like the Nargis gas field and promising crude oil indications from the Velox well in North Cleopatra.