EGAS Chevron Partner on $88 Million Mediterranean Exploration Deal

The Egyptian Natural Gas Holding Company (EGAS) and Chevron have inked a $88 million deal to explore and develop natural gas and crude oil in the Mediterranean Sea’s offshore Lotus block. The agreement, signed by EGAS Executive Managing Director Sayed Selim and Chevron’s Andrew Deegan, includes drilling two exploration wells and reprocessing 3D seismic data.

The Lotus block, located about 200 km off the Mediterranean coast in waters 2,000 to 2,800 meters deep, has never been deeply explored before. Minister of Petroleum and Mineral Resources Karim Badawi highlighted that expanding exploration is key to boosting local oil and gas production, noting that the government’s efforts to clear arrears have restored investor confidence.

Badawi also mentioned ongoing plans to offer more investment opportunities in key regions like the Western Desert, the Delta, and the Gulf of Suez. Chevron is already active in six Mediterranean blocks, including Nargis and North Cleopatra, where previous operations have yielded promising gas and oil discoveries.

The signing ceremony was attended by high-ranking officials, including Chevron Egypt Country Manager Channa Kurukulasuriya and EGAS Vice President for Agreements and Exploration Ibrahim Abdo, underscoring the strategic importance of the deal.