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Egypt has signed four agreements worth more than $340 million with international energy companies to explore for oil and gas in the Mediterranean Sea and Nile Delta, the Petroleum Ministry announced on Saturday.
The state-owned Egyptian Natural Gas Holding Company (EGAS) signed contracts with Shell, Italy’s Eni, Russia’s Zarubezhneft, and Arcius Energy—a joint venture between Britain’s BP and the United Arab Emirates’ ADNOC—to drill 10 wells across offshore and onshore blocks.
According to the ministry, the largest deal was concluded with Shell for $120 million, allowing the company to drill three wells in the Mediterranean’s Merneith offshore area.
Eni signed a $100 million agreement to develop three wells in the East Port Said offshore block.
Arcius Energy, which is 51% owned by BP and 49% by ADNOC’s investment arm XRG, secured a $109 million contract to operate in the North Damietta offshore area.
In addition, Russia’s Zarubezhneft signed a $14 million deal to drill four wells in the onshore North El-Khatatba block in the Nile Delta.
The ministry said the agreements are part of efforts to boost output, highlighting that two new wells in the West Delta concession recently came online, adding 60 million cubic feet of gas per day.
Egypt has faced declining natural gas production in recent years, with output in May standing at 3,545 million cubic meters, a decrease of over 40% compared to March 2021, according to the Joint Organisations Data Initiative (JODI).
By attracting fresh investment, the government aims to stabilize and eventually increase production to meet domestic needs and maintain its role as a regional gas exporter.
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