SEATTLE (Oil Monster): Egypt has signed a new natural gas exploration agreement with Cheiron covering more than $42 million in minimum investment for the East Alexandria offshore concession in the Mediterranean Sea.
The agreement between the Egyptian Natural Gas Holding Company (EGAS) and Cheiron covers the drilling of three exploration wells and the reprocessing of existing seismic data.
The work program is designed to evaluate the East Alexandria concession and identify additional natural gas prospects offshore Egypt.
Egypt's Ministry of Petroleum and Mineral Resources said the minimum investment commitment exceeds $42 million.
The East Alexandria offshore area was offered by EGAS through an international bid round and awarded to Cheiron in June 2025.
The latest agreement allows the company to move into an exploration program focused on testing the area's subsurface potential and identifying possible new gas resources.
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The East Alexandria agreement adds another Mediterranean drilling program to Egypt's broader upstream push. Chevron has already committed at least $88 million to its offshore Lotus block, while recent appraisal work at Nargis-2 has confirmed additional gas-bearing intervals. Together, the programs show Egypt is trying to rebuild domestic gas supply through a wider pipeline of offshore exploration rather than relying on a single discovery.
Petroleum and Mineral Resources Minister Karim Badawi witnessed the signing and said new exploration agreements are intended to accelerate drilling, attract investment and open additional areas to international energy companies.
The agreement was signed by EGAS Executive Managing Director Sayed Selim and Cheiron Chief Commercial Officer Amina Taha, with Cheiron CEO David Cheiron present at the ceremony.
Egypt has been expanding access to upstream opportunities in the Mediterranean, Nile Delta, Gulf of Suez and Western Desert as it seeks to increase domestic petroleum and natural gas production.
The immediate milestone will be completion of seismic reprocessing and drilling of the three exploration wells.
Those results will determine whether the East Alexandria concession can move from an exploration opportunity toward appraisal and eventual development.
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