Chevron and EGAS sign $88m offshore exploration deal in Egypt

The Egyptian Natural Gas Holding Company (EGAS) and Chevron have signed an agreement to explore for natural gas and crude oil in the offshore Lotus block in the Mediterranean Sea. The deal involves a minimum investment of $88 million.

The project includes the drilling of two exploratory wells and the reprocessing of three-dimensional seismic data. The Lotus area is located approximately 200 kilometers off the Mediterranean coast, with water depths ranging between 2,000 and 2,800 meters. This area has not previously been the site of deep exploratory drilling.

Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, stated that expanding exploration is a central part of the ministry’s strategy to increase domestic production. He noted that the government’s efforts to settle arrears with investment partners have bolstered confidence in the Egyptian petroleum sector, encouraging companies to resume and expand exploration programs.