Egypt, Chevron sign $88 mln offshore exploration deal
Egypt and Chevron signed an agreement on Monday for oil and natural gas exploration in the Lotus offshore concession in the Mediterranean, with minimum investments of $88 million, including the drilling of two exploratory wells, the petroleum ministry said.
The agreement, signed by the Egyptian Natural Gas Holding Company (EGAS) and Chevron, also includes the reprocessing of three-dimensional seismic data, the ministry said in a statement.
The Lotus concession lies about 200 km offshore in the Mediterranean, with water depths ranging from 2,000 to 2,800 metres, according to the statement.
The agreement opens “a new exploration area where no deep exploratory wells have previously been drilled, offering potential for new oil and gas discoveries,” the ministry said.
Petroleum Minister Karim Badawi said expanding Egypt’s exploration map was a key part of the ministry’s strategy to increase domestic oil and gas production.
The ministry will continue offering new areas to international companies and using available geological and seismic data, alongside new seismic survey programmes in promising areas, Badawi said.
Steps taken by the government to settle outstanding dues to foreign oil and gas companies have strengthened confidence in Egypt’s petroleum sector and encouraged companies to increase investment and resume exploration programmes, he added.
The measures are expected to support more intensive drilling, field development, and faster implementation of production projects, Badawi said. The ministry will continue to work to create an attractive investment environment.
Egypt plans to offer additional investment opportunities in the Mediterranean, Western Desert, Nile Delta, Gulf of Suez, Sinai, and southern Egypt, alongside ongoing and planned seismic surveys, the minister said.
The surveys are expected to improve geological data and help identify promising prospects for exploration and investment, he added.
Badawi welcomed Chevron’s partnership with Egypt, saying the Lotus agreement reflected the company’s continued investment in exploration activities in the country.
Chevron currently invests in six offshore exploration areas in Egypt for oil and gas, including Nargis, North Dabaa, Lotus, Northwest Atoll, North Simian, and North Cleopatra in the western Mediterranean, according to the ministry. Chevron partners with Shell in the North Cleopatra area.
Badawi said he expected the Lotus drilling programme to help identify new resources and support higher domestic oil and gas production.