Chevron eyes new exploration blocks in Egypt as investment climate improves

US energy major Chevron (NYSE:CVX) is in talks with Egypt’s Ministry of Petroleum and Mineral Resources to invest in three new exploration areas, the company’s country manager, Channa Kurukulasuriya, said in a statement, cited by Asharq Business on April 8.

Chevron, which has been operating in Egypt since 2020 in gas exploration, is currently active in three concession areas. Kurukulasuriya said the company plans to begin drilling a new well in the Nargis gas field in the Mediterranean Sea within weeks, in partnership with Italy’s Eni (BIT:ENI).

He also noted the importance of cooperation with Egyptian authorities to maximise the potential of Cyprus’s Aphrodite gas field, adding that Egypt’s strong infrastructure and positioning as a regional hub enhance gas trading and transportation.

The remarks were made during a meeting organised by the American Chamber of Commerce in Cairo, attended by Petroleum Minister Karim Badawi and senior executives from major international oil and gas companies.

During the event, Badawi said the government will settle dues owed to foreign partners by the end of June, 2026. Outstanding payments dropped from $6.1bn in June 2024 to around $1.3bn currently. 

He added that recently introduced incentives have helped revive exploration and production activity after a slowdown caused by accumulated debts, alongside efforts to reduce production costs and improve project economics.

Egypt is also seeking to reduce reliance on natural gas for electricity generation, which currently accounts for about 60% of domestic gas consumption. Officials further stressed the importance of regional cooperation with Cyprus, including transporting gas to Egypt for re-export or use in petrochemicals and fertiliser industries. Shell (NYSE:SHEL), BP (LSE:BP) and Apache (NASDAQ: APA) have confirmed ongoing investments and expanded drilling plans across Egypt.