EGYPT EXPANDS NATURAL GAS SECTOR WITH $245 MILLION GLOBAL EXPLORATION DEALS

Egypt attracts foreign investment boost by awarding six new exploration blocks to major international energy companies.

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Egypt Awards Six New Exporation Blocks to International Oil and Gas Firms
Egypt Awards Six New Exporation Blocks to International Oil and Gas Firms

Egypt has awarded six new exploration blocks to a group of major international oil and gas firms. The Egyptian Natural Gas Holding Company (EGAS) announced the deals as part of a broader effort to attract foreign investment and boost exploration activity across key regions, including the Mediterranean Sea, the Nile Delta, and North Sinai.

The awarded blocks, four offshore in the Mediterranean and two onshore, are part of EGAS’s 2024 international bid round launched via the Egypt Upstream Gateway (EUG) digital platform. These contracts are expected to inject an estimated $245 million into Egypt’s energy economy and include the drilling of at least 13 exploratory wells.

Among the winners, a consortium comprising Chevron Egypt and BG (Shell) secured the North Samian and Northwest Atoll offshore blocks, with plans to drill two wells in each. Italian energy major Eni, through its local arm IEOC Production, clinched the North Ras El Tin Offshore Block and will drill three wells. Cheiron Egypt will explore the East Alexandria offshore block, also committing to three wells.

Onshore activities will see IPR exploring the North Tanta block in the Nile Delta with two wells, while French operator Perenco will conduct 3D seismic surveys and drill one well in the El Fayrouz block in North Sinai.

This move comes as Egypt grapples with a noticeable dip in natural gas output. According to the Joint Organisations Data Initiative (JODI), the country’s production fell to 3,485 million standard cubic metres in April 2025, down sharply from a peak of 6,133 million in March 2021. This downturn has raised red flags about Egypt’s capacity to meet both domestic consumption and export obligations.

The Ministry of Petroleum and Mineral Resources continues to position Egypt as a regional energy hub by aggressively courting international investment. The EUG platform is currently hosting additional offerings, including undeveloped offshore discoveries in the Mediterranean. Bidding for these assets closes on July 2, 2025.

This latest EGAS round follows an earlier announcement this month from the Egyptian General Petroleum Corporation (EGPC), which awarded seven new exploration and production blocks projected to add another 17 exploratory wells.

By deepening its collaboration with global energy players, Egypt is betting on international capital and expertise to help restore production momentum and secure its energy future.

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