The Egyptian Natural Gas Holding Company (EGAS) has recently awarded six new exploration blocks to a group of international companies, with the goal of boosting investment in the country’s natural gas sector. These new blocks include four offshore blocks in the Mediterranean, which were offered as part of the 2024 international bid round through the Egypt Upstream Gateway “EUG,” as well as two onshore blocks in the Nile Delta and North Sinai.
The contracts awarded are expected to bring in around $245 million in investments, with plans to drill at least 13 exploratory wells during the exploration phase. Among the awarded blocks, the North Samian and Northwest Atoll offshore blocks were secured by a consortium of Chevron Egypt and BG (Shell), who intend to drill two exploratory wells in each block. The North Ras El Tin Offshore Block was granted to IEOC Production (Eni), which will drill three exploratory wells. Cheiron Egypt is set to drill three exploratory wells in the East Alexandria offshore block, while onshore, IPR will carry out drilling in the North Tanta block and Perenco will conduct a 3D seismic survey and drill in the El Fayrouz block in North Sinai.
In a broader strategy to attract foreign investment and enhance exploration, the EGAS announcement aligns with efforts by Egypt’s Ministry of Petroleum and Mineral Resources. The EUG platform continues to offer additional investment opportunities, including undeveloped offshore discoveries in the Mediterranean, with bidding closing on July 2, 2025. Additionally, an earlier award of seven new exploration and production blocks under the Egyptian General Petroleum Corporation (EGPC) is expected to attract further investment and lead to the drilling of at least 17 additional exploratory wells.
Despite these efforts, Egypt’s gas production has seen a decline in recent years, dropping to 3,485 million standard cubic meters in April 2025 from a peak output of 6,133 million standard cubic meters in March 2021. This decline raises concerns over supply shortfalls amidst increasing domestic and export demands. As Egypt continues to focus on expanding its natural gas sector, these new exploration blocks and investments mark a significant step towards meeting the country’s energy needs and attracting foreign capital to the industry.
