Egypt signs gas expansion deals with Harbour Energy, Eni

Egypt has signed new agreements on June 17 with British firm Harbour Energy (LSE:HBR) and Italy's Eni (BIT:ENI) to raise natural gas production and establish an economic framework to stimulate foreign investment in the country’s energy sector, Al Akhbar reported. 

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi witnessed the signing of the agreements. The first agreement, signed between the Egyptian Natural Gas Holding Company (EGAS) and Harbour Energy, aims to develop the onshore Desouk area in the Nile Delta. It adds two new sectors to Harbour Energy's concession. Harbour will drill two exploratory wells and conduct maintenance on an existing producer in the Desouk-1 development. The initial investment stands at $6mn, alongside a $1mn signature bonus.

Investments are projected to rise to approximately $18mn upon successful discoveries, with an additional $122mn injected for development to scale up regional natural gas production. The ministry noted that this expansion leverages Harbour Energy's positive local performance during FY 2025/26. The company drilled the Ezz-1 and Ezz-2 wells, which added an estimated 35bn cubic feet of gas reserves. Harbour Energy plans to drill three further exploration wells during FY 2026/27.

Badawi also witnessed the signing of a heads of terms agreement between the Egyptian General Petroleum Corporation (EGPC) and Eni. The accord outlines the renewal of the Port Fouad marine development area in the Mediterranean and its subsequent work programme. The initiative aims to support current output and open up growth opportunities in adjacent blocks while maintaining existing infrastructure and production facilities.