Egypt Expands Energy Investment Horizons with $245M in New Gas Exploration Deals

Egypt Today

3 days ago

CAIRO – 25 June 2025: In a major step to attract foreign investment and strengthen its energy sector, the Egyptian Natural Gas Holding Company (EGAS) has awarded six new exploration blocks to leading international companies, according to the Ministry of Petroleum.
The awarded concessions—four offshore in the Mediterranean Sea and two onshore in the Nile Delta and North Sinai—are expected to generate $245 million in new investments and lead to the drilling of at least 13 exploratory wells.
The offshore blocks, offered through Egypt's 2024 global bid round on the Egypt Upstream Gateway (EUG), were allocated as follows:
North Sidi Barrani Offshore & North West Atoll Offshore: Awarded to a consortium of Chevron Egypt and BG (Shell), with each block slated for two wells.
North Ras El-Tin Offshore: Granted to IEOC Production (Eni), which will drill three wells.
East Alexandria Offshore: Assigned to Cheiron Egypt, also planning three wells.
Onshore, two blocks were awarded:
North Tanta (Nile Delta): Awarded to IPR, with two wells planned.
Al-Fayrouz (North Sinai): Given to Brenco, which will carry out 3D seismic surveys and drill one well.
These developments underscore Egypt's continued push to diversify its energy sources and enhance exploration activity.
Additional offshore exploration opportunities in the Mediterranean are still open for bidding through the EUG, with submissions closing on July 2, 2025. Results will be announced following bid evaluation.
In parallel, Egypt's natural gas supply chain is facing short-term disruptions. A government official confirmed to Al Arabiya that the resumption of gas supplies to factories has been delayed by another week, due to halted imports from Israel.
Current Israeli gas flows to Egypt have dropped to 40–50 million cubic feet per day, significantly below the 650 million initially expected earlier in the week.