The planned 2027 offshore investment comes as Egypt seeks to reverse declining gas production and reduce its multibillion-dollar import bill.
Shell plans to invest $100 million in natural gas exploration off Egypt’s Mediterranean coast in 2027, as Cairo seeks to boost domestic production and ease pressure from costly energy imports.
The investment targets the deepwater Mernith concession near Cyprus, with seismic surveys expected to conclude in the first half of 2027 before drilling an exploratory well, according to agovernment official cited by Asharq Bloomberg. Shell declined to comment.
The reported spending follows a $120 million agreement signed in August 2025 covering three wells at Mernith.
Whether the latest investment forms part of that commitment or represents additional funding remains unclear.
Egypt’s gas imports reportedly cost $7.9 billion in 2025, according to EnterpriseAM, underscoring the financial stakes of reversing declining production.
The government is also advancing Mediterranean seismic surveys to identify new reserves and
attract international energy investors.
The central challenge is converting exploration investment into commercial production. With domestic gas demand exceeding current output, successful discoveries could help Egypt reduce import dependence, although their contribution would depend on further development and production timelines.
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