Egypt approves two oil and gas exploration agreements worth $85mn

The Egyptian cabinet has approved two new agreements for oil and gas exploration with a minimum combined investment of $85mn, as part of efforts to boost upstream activity and increase domestic production, according to a statement on April 16, cited by Al Masry Al Youm.

The first agreement will be signed between the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings. The deal targets exploration and development of natural gas and crude oil in the Lotus offshore block in the Mediterranean. Chevron Egypt Holdings is a wholly-owned subsidiary of US energy major Chevron (NYSE: CVX) that manages the company's upstream exploration and production interests in Egypt's Mediterranean and Red Sea blocks.

The second agreement will be concluded between the government and the General Petroleum Company, covering exploration, development and production across several areas, including Gamsa and Ras Bahar in the Eastern Desert, Ras Gharib blocks in the Gulf of Suez, South Rafah (Abu Radd) in Sinai, and Abu Sennan in the Western Desert.

Both agreements are aligned with the Ministry of Petroleum’s strategy to accelerate exploration activities, enhance production levels, and maximise the utilisation of Egypt’s natural resources. They are also expected to support efforts to reduce reliance on imports and strengthen the country’s energy security.

Egypt aims to boost domestic production and reduce reliance on imports by expanding drilling and strengthening partnerships with international energy firms. The country is currently pursuing an ambitious plan to drill more than 100 exploratory wells in 2026, alongside the development of existing fields, to maximise hydrocarbon resources and boost domestic output.