Latest news with #EgyptUpstreamGateway
Egypt Today
4 days ago
- Business
- Egypt Today
Egypt Expands Energy Investment Horizons with $245M in New Gas Exploration Deals
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.
Al-Ahram Weekly
4 days ago
- Business
- Al-Ahram Weekly
Egypt awards int'l energy companies 6 exploration blocks expecting $245 mln in investment
Egypt is ramping up its oil and gas ambitions by awarding six new exploration blocks to top international energy companies, expecting to attract $245 million in fresh investment, a statement by the Ministry of Petroleum and Mineral Resources said Wednesday. The move, announced by the Egyptian Natural Gas Holding Company (EGAS), will see at least 13 new wells drilled across the Mediterranean Sea, the Nile Delta, and North Sinai. This marks a significant step toward boosting domestic energy production and attracting international interest. The ministry said the action is part of its plan and strategy to attract new investments in exploration and support ongoing efforts to increase production. These blocks comprise four offshore Mediterranean blocks offered as part of the 2024 global bid round on the Egypt Upstream Gateway and two onshore blocks in the Nile Delta and North Sinai. The blocks and companies are as follows: ** The North Semonian Offshore and North West Atoll Offshore blocks were awarded to the Chevron Egypt and BG (Shell) consortium, with two exploration wells planned in each block. ** The North Ras El-Teen Offshore block was awarded to IEOC Production (Eni), with three exploration wells planned. ** The East Alexandria Offshore block was awarded to Cheiron Egypt, with three exploration wells planned. ** The North Tanta Onshore block in the Nile Delta was awarded to IPR, which plans to drill two exploration wells. **The Al-Fayrouz Onshore block in North Sinai was awarded to Perenco, which plans to conduct a 3D seismic survey and drill one exploration well. A diverse range of blocks, including several underexplored offshore fields in the Mediterranean, are still available on the Egypt Upstream Gateway (EUG) for additional investment opportunities. Bidding for these blocks will close on 2 July 2025, and the results will be announced after the round closes and bids are received. Follow us on: Facebook Instagram Whatsapp Short link:
Gulf Insider
11-03-2025
- Business
- Gulf Insider
Egypt's Ambitious Oil And Gas Plans
Egypt plans to build a $7 billion petrochemical complex and launch new oil and gas auctions to boost domestic production. The country aims to enhance energy security and attract foreign investment, despite recent economic challenges and energy shortages. Egypt is balancing its fossil fuel development with renewable energy targets, though it has adjusted its green energy goals. Oil-rich Egypt has big plans for the future of its fossil fuel development with several major new auctions and investments planned for the North African country. A new $7 billion petrochemical complex and other major oil and gas investments are expected to reinvigorate Egypt's oil industry, although it may have to win back investor confidence following a disappointing financial year. Egypt is a major African fossil fuel producer, the second-largest non-OPEC producer of liquid fuels after Angola. It was also the second-largest producer of natural gas in Africa in 2022, after Algeria. The expansion of Egypt's gas production has been supported by the launch of operations at several major offshore fields over the past decade, including its Zohr gas field. However, Egypt's gas production has been forecast to fall in the coming decades as Zohr matures, as well as due to several recent exploration failures. In February, Egypt signed a framework agreement with U.K.-based Shard Capital and Saudi Arabia's Al-Qahtani Group to construct a $7 billion petrochemical facility in New Alamein City in the northwest of the country. The project will be overseen by a consortium, including members from Shard Capital, Al-Qahtani Group, and the UAE's Royal Strategic Partners. Once complete, it is expected to produce 3.1 million tonnes of eight different petrochemical products annually. Karim Badawi, Egypt's Minister of Petroleum and Mineral Resources, said that advanced technologies will be incorporated into the facility's design to reduce the impact on the environment. Badawi said the development is key to improving the value of Egypt's natural resources. The complex is expected to enhance Egypt's export capacity significantly. It is also expected to help deepen ties between Egypt, Gulf countries and the U.K. In March, Egypt's Ministry of Petroleum and Mineral Resources announced new investment opportunities, aimed at expanding exploration and production activities. The ministry plans to offer seven undeveloped fields in the Mediterranean and six exploration areas in the Gulf of Suez and the Western Desert. Companies can bid using the Egypt Upstream Gateway (EUG) over the next two months, until 4th May 2025. The ministry recently closed the bidding round for 13 exploration areas and mature fields, after several offers were received, which are currently being assessed. The combined investments from the previous auction could bring in more than $700 million in investments. In the new auction, the seven undeveloped fields are being offered in two clusters – the Aten, Merit, and Rahmat fields, as well as the Notus, Salamat, Satis, and Salmon fields. This approach is aimed at increasing investment returns, reducing production costs, and streamlining development and production processes. The government aims to boost Egypt's energy security through the expansion of the country's oil and gas industry. The largely untapped natural gas reserves in the Mediterranean are expected to help make Egypt more energy-independent in the future, as the national energy demand continues to grow. Egypt's President Abdel-Fattah El-Sisi views the country as a production and re-export hub for international markets. As host to the 2022 COP27 Climate Conference, Egypt also stated aims to expand its renewable energy sector. Before hosting COP27, Egypt pledged to increase renewable energy production to 42 percent of its energy mix by 2035, a target which it later moved forward to 2030. In June 2024, then-Electricity Minister Mohamed Shaker announced the ambitious target of an energy mix with 58 percent renewables by 2040. However, in October, the government revised its green energy target, reducing the figure to 40 percent of the energy mix. During the announcement, Petroleum Minister Karim Badawi said that natural gas will remain a vital part of the country's energy mix for several years. At the opening session of the Mediterranean Energy Conference 2024, Badawi stated, 'This is a message to all of us to work together to increase discoveries and attract more investments through the bids being offered for exploration, aiming to achieve new discoveries in the region, which holds more wealth, particularly natural gas.' Egypt's government is currently working to rebuild trust with foreign companies following the 2024 energy crisis. Following a sharp gas production decline, Egypt was forced to import billions of dollars' worth of gas cargoes to meet its national demand last summer. The energy ministry had to resort to load-shedding to keep its grid online as its gas supplies depleted and demand rose. As Egypt was facing a currency crisis, countries, including Saudi Arabia and Libya, stepped in to help Egypt fund the gas imports it needed. Egypt's pound experienced a devaluation of 60 percent between March and September 2024. In addition, Egypt reportedly accumulated around $6 billion worth of debt for gas and fuel supplies. President Sisi and Energy Minister Badawi now aim to attract new investments through the new oil and gas auctions, as well as reassure companies that already have operations in Egypt. Also read: Researchers Sniff Ancient Egyptian Remains, Make Surprising Discovery
