EGAS and Chevron Partner on $88 Million Mediterranean Oil and Gas Exploration Deal

Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) has signed an $88 million agreement with Chevron to explore oil and gas resources in the Mediterranean’s offshore Lotus Block. Located around 200 kilometers off the coast at depths ranging from 2,000 to 2,800 meters, the deal involves drilling two exploratory wells and reprocessing 3D seismic data to uncover new opportunities in an area where deep exploratory wells have never been drilled.

The agreement aligns with Egypt’s petroleum ministry’s broader strategy to expand exploration activities and boost domestic oil and gas production. The ministry aims to increase oil and gas exploration and production by 20 percent over the next five years. EGAS plans to drill 36 exploratory wells with total investments of $177 million, targeting a production increase to 44,000 barrels per day by 2026/2027 and 65,000 barrels per day by 2030/2031.

Petroleum Minister Karim Badawi highlighted that Egypt’s timely settlement of outstanding dues to foreign oil and gas partners has improved investment conditions, encouraging international companies to accelerate drilling and development programs. The ministry is also offering new investment opportunities across various regions, including the Mediterranean, Western Desert, and Gulf of Suez, to attract more exploration and increase domestic gas output by around 330 million cubic feet per day before the end of 2026.

Additionally, Egypt is targeting an increase in mining’s contribution to GDP to around six percent, up from less than one percent currently, as part of efforts to overhaul the sector and enhance its economic returns. This initiative is supported by financing, mineral processing, and foreign partnerships.