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

The Egyptian Natural Gas Holding Company (EGAS) and Chevron have finalized an agreement to explore and develop natural gas and crude oil resources in the Mediterranean Sea’s offshore Lotus block. The deal, valued at a minimum of $88 million, includes drilling two exploration wells and reprocessing 3D seismic data.

The Lotus block, situated approximately 200 kilometers off the Mediterranean coast in water depths ranging from 2,000 to 2,800 meters, has not previously undergone deep exploration drilling. The agreement was signed by EGAS Executive Managing Director Sayed Selim and Chevron’s Exploration Manager for the Middle East, North Africa, and the Mediterranean, Andrew Deegan.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi highlighted that expanding exploration is a key priority for increasing local oil and gas production. He emphasized that the government’s efforts to settle arrears with investment partners have boosted confidence in the Egyptian petroleum sector, encouraging companies to invest more and accelerate production projects.

Chevron is currently involved in six offshore exploration blocks in the Mediterranean, including Nargis, North El Dabaa, Lotus, North West Atoll, North Sinai, and North Cleopatra, where it partners with Shell. Previous operations have included the Nargis gas discovery, while recent drilling at the Philox well in the North Cleopatra area indicated the presence of crude oil.