Egypt signs $121 million deal with Cheiron for oil output boost

Egypt signed an investment agreement worth more than $30 million for oil exploration and production in the East Gamsa offshore in the Gulf of Suez, with Cheiron Petroleum Corporation, the petroleum ministry said on Thursday.

Cheiron, which agreed to pay a signing bonus of $1 million, will drill four new wells in the block.

Minister of Petroleum Karim Badawy witnessed the signing of the deal between Salah Abdel Kerim, CEO of the Egyptian General Petroleum Corporation (EGPC), and Alan Linn CEO of Cheiron.

Badawy said the agreement supports the first pillar of the ministry’s strategy, which aims to intensify crude oil exploration to identify new reservoirs, boost domestic production, and reduce Egypt’s reliance on imports.

“The agreement is a successful model of public-private partnership and demonstrates our commitment to encouraging Egyptian private sector investment in oil exploration and production,” he added.

The minister also highlighted Egypt’s broader exploration potential, noting that the Western Desert and Gulf of Suez regions offer promising opportunities for discovering and producing crude oil, while advanced technologies will be applied to maximise reserves and uncover new fields.

Attribution: Amwal Al Ghad English