Egypt Signs Massive $340 Million Gas and Oil Exploration Package
Four major international deals signed covering Mediterranean and Delta regions with 10 new wells planned
Egypt has secured four major exploration agreements with international energy companies worth over $340 million, marking the country’s most significant exploration investment package this year. The deals will see the drilling of 10 new wells across the Mediterranean Sea and Nile Delta regions as Egypt intensifies efforts to boost domestic production.
The Egyptian Natural Gas Holding Company (EGAS) signed the comprehensive package in the presence of Petroleum Minister Karim Badawi, bringing together major international players including Shell, Eni, ARCIUS Energy, and Russia’s Zarubezhneft.
Shell leads the investment with a $120 million commitment covering three wells in the Mediterranean’s Merneith offshore area, building on the company’s 110-year partnership with Egypt. Italian energy giant Eni, through its Egyptian subsidiary IEOC, committed $100 million for three wells in the East Port Said offshore area, partnering with bp Egypt and Qatar Petroleum.
ARCIUS Energy, a joint venture between bp and ADNOC Group’s XRG, signed a $109 million agreement for operations in the North Damietta offshore area of the Mediterranean. The smallest but strategically important deal went to Russia’s Zarubezhneft for $14 million covering four onshore wells in the North Khatatba area of the Nile Delta.
The massive investment comes as Egypt transitions from a regional gas exporter to a net importer, with domestic consumption reaching 60 billion cubic meters in 2024 while production fell to just 47.5 billion cubic meters. Gas production in May was down more than 40% from March 2021 levels, highlighting the urgent need for new discoveries.
Source: egyptoil-gas.com / gcaptain.com
