Egypt Signs Four New Oil, Gas Exploration Agreements with Global Companies

Egypt's Egyptian Natural Gas Holding Company (EGAS) has signed four new agreements with leading international companies to explore oil and gas reserves in the Mediterranean Sea and the Nile Delta, marking a significant step in the country’s energy strategy. 

The deals, valued at a minimum of $340 million, will see the drilling of 10 new wells.

The agreements were announced by Egypt’s Ministry of Petroleum in a statement released on Saturday, underscoring the country’s ongoing efforts to boost exploration and production. These moves are part of the first phase of Egypt’s broader strategy to enhance its oil and gas exploration activities, and make it a regional energy hub.

The first agreement involves the Merinth offshore area in the Mediterranean, where Royal Dutch Shell will invest $120 million to drill three wells. The contract was signed by Dalia Gabry, President of Shell Egypt.

The second agreement focuses on the East Port Said offshore area in the Mediterranean, with Italian energy giant Eni committing $100 million to drill three wells. The agreement was signed by Francesco Gaspari, Managing Director of Eni Egypt.

The third agreement covers the North El-Khatatba onshore area in the Nile Delta, where Russia’s Zarubezhneft will invest $14 million to drill four wells. This agreement was signed by Yassin Rahleeb, Deputy President of Zarubezhneft Egypt, in the presence of General Manager Rustem Bakirov and Chief Geologist Mikhail Kobrak.

Finally, the fourth agreement pertains to the North Damietta offshore area in the Mediterranean, with Arkeos Energy, a partnership between BP and XRG (a subsidiary of ADNOC), committing $109 million to explore the region. The deal was signed by Nasser Al-Yafai, President of Arkeos Energy.

These agreements reflect Egypt’s continued efforts to expand its oil and gas sector through foreign investment, intensifying exploration activities, and increasing production. The country’s government is focused on accelerating the development of its energy resources to meet domestic demand and further solidify its position as a key player in the global energy market.