Egypt and Chevron Ink $88 Million Mediterranean Oil and Gas Exploration Deal

Egypt’s EGAS and Chevron have signed an $88 million deal to explore oil and gas in the Mediterranean’s Lotus Block, located around 200 kilometers offshore at depths of 2,000 to 2,800 meters. The agreement includes drilling two exploratory wells and reprocessing 3D seismic data in an area where deep exploratory wells have never been drilled, potentially uncovering new natural gas and crude oil reserves.

The deal aligns with Egypt’s petroleum ministry’s strategy to boost domestic production, targeting a 20 percent increase in exploration and production. Petroleum Minister Karim Badawi stated the agreement supports the ministry’s plan to expand exploration and attract investment. EGAS also plans to drill 36 exploratory wells with investments totaling $177 million, aiming to raise production to 44,000 barrels per day by 2026/2027 and 65,000 barrels per day by 2030/2031.

The agreement follows Egypt’s settlement of outstanding dues to foreign oil and gas partners, improving investment conditions. Chevron is also investing in other offshore blocks, including the Cypriot Aphrodite gas field, with plans to connect it to Egyptian infrastructure. The ministry aims to increase domestic gas output by 330 million cubic feet per day before the end of 2026, narrowing the gap between supply and demand.

Egypt is also focusing on expanding its mining sector to boost GDP contributions from less than 1 percent to around 6 percent. The ministry will continue offering new exploration opportunities across key regions, including the Mediterranean, Western Desert, and Gulf of Suez, using updated geological and seismic data to attract more investment.