Arab Finance: Egypt and US-based energy company Chevron reviewed positive drilling results from the Mediterranean’s Nargis-2 well and progress toward connecting Cyprus’s Aphrodite gas field to Egyptian infrastructure, according to a statement from the Ministry of Petroleum and Mineral Resources.

Karim Badawi, Minister of Petroleum, and Kevin McLachlan, Chevron’s Vice President of Exploration, discussed these results on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi.

Results from Nargis-2 confirmed the extension of gas-bearing formations previously identified at Nargis-1 and revealed an additional gas-bearing layer.

The findings also strengthened the outlook for the discovery and supported further evaluation to establish the size of its resources and assess development options.

Badawi stressed the importance of the Chevron partnership and called for building on these exploration results by accelerating the appraisal of discoveries and identifying development opportunities, saying these efforts would help increase domestic natural gas production and make fuller use of Egypt’s petroleum resources.

The meeting also covered Chevron’s ongoing activities in Egypt and plans to expand natural gas exploration, drawing on opportunities in the Eastern Mediterranean.

Chevron currently invests in six Egyptian offshore exploration blocks: Nargis, North El Dabaa, Lotus, North West Atoll, North Simian, and North Cleopatra. At North Cleopatra, Chevron partners with UK-based energy company Shell, which operates the block.

Alongside domestic exploration, the two sides reviewed progress in completing the agreements and arrangements required to connect Aphrodite’s production to Egypt. These steps would pave the way for a final investment decision and the start of project implementation.

The proposed connection would use Egypt’s existing facilities to receive, process, and liquefy natural gas, supporting the country’s role as a regional gas trading hub.

On the investment environment, Badawi reaffirmed the sector’s commitment to stability, clarity, and transparency, underpinned by honoring obligations to investment partners and strengthening mutual trust.

The minister also highlighted efforts to introduce incentives and investment mechanisms encouraging international companies to increase spending and step up exploration and production in Egypt.

Meanwhile, McLachlan emphasized Egypt's significance to Chevron’s Eastern Mediterranean portfolio, citing its investment opportunities and developed natural gas infrastructure.

Additionally, he expressed the company’s interest in deepening its partnership with the Egyptian petroleum sector and expanding exploration activities in the period ahead.