Egypt signs $500mn investment deal with Arcius to develop Harmattan gas field

Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) has signed a final investment decision (FID) agreement with energy firm Arcius to develop the Harmattan gas field in the Mediterranean, with total investments estimated at up to $500mn, Economy Plus reported on April 2. 

Arcius, a joint venture between UK supermajor BP (LSE:BP) and XRG, an ADNOC (ASE:ADNOC)-affiliated firm, is a key player in Egypt’s natural gas sector, recently launching a major drilling campaign in the Mediterranean to boost regional energy production.

The agreement was signed on the sidelines of the Egypt International Petroleum Conference and Exhibition (EGYPS 2026).

The project is expected to produce around 150mn cubic feet of gas per day, alongside 3,300 barrels of condensate. Plans are also under consideration to increase output to 200mn cubic feet of gas and 4,400 barrels of condensate per day. The development is scheduled for completion by 2028.

In parallel, a general contractor agreement for the project was signed between Pharaonic Petroleum Company and Egyptian engineering firm ENPPI.

The deal forms part of Egypt’s broader strategy to boost domestic energy production and reduce reliance on imports. The petroleum ministry is targeting the drilling of around 101 exploration wells for oil and gas in 2026, alongside accelerating the development of existing fields.

Petroleum Minister Karim Badawi previously said Arcius plans to invest up to $2bn in Egypt in the coming period. Other international players, including Italy’s Eni (BIT:ENI) and BP, are also planning multi-billion-dollar investments over the next five years.

In addition, the ministry is also working to settle outstanding dues to foreign partners, currently estimated at $1.3bn, with full repayment targeted by the end of June.