Egypt’s state-owned Egyptian Natural Gas Holding Company (EGAS) and Cheiron Energy have signed an agreement to explore for natural gas in the East Alexandria Offshore area of the Mediterranean Sea, with a minimum investment commitment exceeding $42 million. The programme covers drilling three exploratory wells and reprocessing seismic data to assess the area’s gas potential and identify new resources, as Egypt seeks to increase domestic production and reduce reliance on gas imports.
The agreement was signed by EGAS Executive Managing Director Sayed Selim and Cheiron Chief Commercial Officer Amina Taha, in the presence of Petroleum and Mineral Resources Minister Karim Badawi, Cheiron CEO David Chi and senior petroleum sector officials.
The East Alexandria Offshore block was awarded to Cheiron in June 2025 following an international bidding round conducted by EGAS. The latest agreement advances the company’s exploration programme in the concession area.
The planned exploratory drilling and seismic data reprocessing are intended to improve the assessment of subsurface geological structures and identify prospective gas-bearing formations. The investment represents a minimum exploration commitment, rather than expenditure already incurred or confirmation of commercially recoverable reserves.
Badawi said the agreement would accelerate upstream exploration and enable investment partners to begin work programmes in new areas, potentially leading to additional discoveries and an increase in Egypt’s oil and gas reserves.
He said the ministry’s broader strategy also focuses on accelerating the development of discovered fields and maximising hydrocarbon recovery from existing assets to meet a greater share of domestic energy demand.
Cheiron has an established upstream exploration and production portfolio in Egypt, with operations across the Western Desert, Mediterranean Sea and Gulf of Suez.
The company also participates in Egypt’s petroleum sector through Badr El-Din Petroleum Company (BAPETCO), where operational activities and development programmes are being expanded.
Badawi highlighted Cheiron’s involvement in the ministry’s initiative to expand horizontal drilling and hydraulic fracturing technologies in the Western Desert, aimed at improving well productivity and recovering resources that may be difficult to extract through conventional methods.
Cheiron is also involved in developing and producing natural gas from the West El Burullus offshore field through PetroWeb, the joint venture responsible for implementing the development programme.
The West El Burullus project achieved first gas in November 2025, according to Cheiron, marking a separate development milestone within the company’s Egyptian portfolio.
Chi described the East Alexandria agreement as an important addition to Cheiron’s operations in Egypt and a further step in its partnership with the country’s petroleum sector.
He also acknowledged the ministry’s efforts to improve the investment environment and address operational challenges, saying government support would help accelerate investment and expand exploration and production activities.
The agreement comes as Egypt seeks to attract additional upstream investment and replenish domestic gas resources. Any contribution from East Alexandria to future production will depend on drilling results, the commercial viability of potential discoveries and subsequent field development decisions.
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