Egypt Gives Six Oil and Gas Areas for Exploration to Attract More Investment and Drilling
Egypt has given six new oil and gas exploration areas to international energy companies. The goal is to attract more investment and increase exploration work in the Mediterranean Sea, Nile Delta, and North Sinai, the Ministry of Petroleum and Mineral Resources said on Wednesday.
Oil and Gas Contracts
The Egyptian Natural Gas Holding Company (EGAS) has signed new oil and gas contracts expected to bring in about $245 million in investments during the exploration phase. This phase includes drilling at least 13 test wells.
The contracts cover four offshore areas in the Mediterranean Sea and two onshore areas in the Nile Delta and North Sinai.
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A team of Chevron Egypt and BG (part of Shell) will explore the North Samian and Northwest Atoll offshore blocks, with two wells planned in each.
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IEOC Production will explore the North Ras El Tin offshore area and drill three wells.
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Cheiron Egypt will drill three wells in the East Alexandria offshore block.
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IPR will explore the North Tanta onshore block and drill two wells.
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Perenco will explore the El Fayrouz block in North Sinai, carry out a 3D survey, and drill one well.
The Ministry said more investment chances are available through the Egypt Upstream Gateway (EUG), including undeveloped offshore gas finds in the Mediterranean. The current bidding round ends on July 2, 2025, and results will be announced soon after.
Emergency Plan
On June 13, Egypt stopped importing natural gas from Israel due to the military conflict between Tel Aviv and Tehran. In response, Egypt activated an emergency plan to avoid electricity shortages.
The plan includes cutting gas supplies to some factories and using more fuel at power stations to keep the electricity grid stable and prevent blackouts.
Earlier in June, Egypt signed several deals with energy companies to buy at least 150 shipments of liquefied natural gas (LNG). This is the country’s biggest LNG import deal so far, worth over $8 billion based on current prices.
The country is using floating LNG storage and regasification units (like Energos Eskimo) and plans to secure 150–160 LNG cargoes by 2026. However, this solution is expensive and must be balanced with plans to boost local energy production in the long run.
Published: 26th June 2025
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