Egypt launches global tender to explore gas in Eastern Mediterranean

Egypt’s Ministry of Petroleum has issued a global tender inviting specialised companies to conduct a seismic survey covering 100,000 square kilometres in the Eastern Mediterranean, Asharq reported on August 7, citing a government official. 

The aim is to evaluate gas reserves and boost discoveries in the region.

The survey will be divided into sectors, with multiple companies conducting the work according to a specified timeline to expedite exploration. Egypt will not bear the cost of the seismic survey; instead, companies providing the survey data can charge global oil and gas firms interested in exploration rights for accessing these data packages.

The Eastern Mediterranean accounts for 62% of Egypt’s natural gas production, followed by the Nile Delta (19%) and the Western Desert (18%), with 20 companies currently operating in these areas.

The official told Asharq that the seismic survey will enable small and medium-sized gas producers in the Eastern Mediterranean to access new data and exploration blocks, potentially saving them at least 60% of the costs they would otherwise incur in conducting their own seismic surveys.

In a strategic shift, the Egyptian government is seeking to attract 20 local companies to invest directly in the development of mature oil and gas fields. Talks are underway with Egyptian investors, including businessman Mohamed Abu El-Enein and his newly established energy company Al Nile, part of Cleopatra Holding Group.

Last year, the government signed four memoranda of understanding with major local industrial groups, namely Hassan Allam Holding-Infinity Capital Investment, Ezz Steel, El Sewedy Industrial, and Motaweret Petroleum Services (Adis), to study and explore opportunities to develop ageing fields in the Gulf of Suez and Eastern Desert.