EGAS, Cheiron sign $42m gas exploration deal

Egyptian Natural Gas Holding Company (EGAS) and Cheiron Energy signed a new natural gas exploration agreement on Monday for the East Alexandria offshore area in the Mediterranean Sea, with minimum investment exceeding $42 million.

The agreement includes drilling three exploratory wells and reprocessing seismic data to assess the area’s potential and support efforts to discover additional natural gas resources.

Minister of Petroleum and Mineral Resources Karim Badawi said the agreement represents an important step towards accelerating upstream activities, attracting investment partners to new exploration areas, and adding petroleum and natural gas reserves.

Meanwhile, Cheiron CEO David Chi said the agreement represents an important addition to the company’s portfolio in Egypt and reflects the development of its partnership with the petroleum sector in implementing exploration and production programmes.