Arab Finance: The Egyptian Natural Gas Holding Company (EGAS) and US-based energy company Chevron signed an agreement to explore for and develop natural gas and crude oil in the Mediterranean Sea’s Lotus offshore block, with a minimum investment commitment of $88 million, as per a statement.

The agreement covers drilling two exploratory wells and reprocessing three-dimensional seismic data as part of the Ministry of Petroleum and Mineral Resources’ efforts to expand exploration and open new areas to investment.

EGAS Executive Managing Director Sayed Selim and Andrew Deighan, Chevron’s exploration director for the Middle East, North Africa, and the Mediterranean, signed the agreement. Minister of Petroleum and Mineral Resources Karim Badawi witnessed the signing, with Chevron Egypt Country Manager Channa Kurukulasuriya and senior ministry and EGAS officials in attendance.

Located approximately 200 kilometers off the Mediterranean coast, the Lotus block has water depths ranging from 2,000 to 2,800 meters. No deep exploratory wells have previously been drilled in the area, which the ministry said offers potential for new natural gas and crude oil discoveries.

As a central part of the ministry’s strategy to increase domestic oil and gas production, Badawi referred to a broader exploration, under which the ministry is offering new areas to international companies, drawing on existing geological and seismic data, and introducing seismic survey programs in promising regions.

Its investment plans span the Mediterranean, Western Desert, Nile Delta, Gulf of Suez, Sinai, and southern Egypt. Ongoing and planned seismic surveys will provide more current and accurate information on geological structures to help identify prospects and attract exploration investment, he added.

Alongside efforts to expand exploration opportunities, Badawi said steps to settle outstanding payments owed to investment partners had strengthened confidence in Egypt’s petroleum sector. This had encouraged companies to increase investment and resume exploration programs, supporting more drilling, field development, and faster implementation of production projects.

He reaffirmed the ministry’s commitment to maintaining an attractive investment environment and helping companies operating in Egypt expand their activities.

Badawi also pointed to President Abdel Fattah El-Sisi’s remarks at the Egypt Mining Forum, where the president affirmed the state’s commitment to the success of investments in mining and other economic sectors. The minister said the remarks underscored government support for investors and for an environment that enables companies to implement their plans and expand.

Turning to the Chevron partnership, Badawi said the Lotus agreement reflected the company’s continued investment in exploration in Egypt. He expressed hope that drilling would identify new resources and support domestic natural gas and crude oil production.

Chevron is active in Mediterranean exploration, with investments in six offshore blocks: Nargis, North Dabaa, Lotus, Northwest Atoll, North Simian, and North Cleopatra. In North Cleopatra, located in the western Mediterranean, it partners with UK-based energy company Shell.

The ministry cited the Nargis gas discovery among the results of Chevron’s exploration activities in its Mediterranean concessions. It also reported promising indications of crude oil from recent drilling at the Velox well in the North Cleopatra block.