• Arcius commits $500 million to Egypt’s Harmattan gas project
• Development targets 125 million cubic feet daily output by 2028
• Investment aims to boost supply amid declining domestic production

Egypt’s gas output has declined in recent years as the Zohr field matures. Arcius Energy is seeking to reverse that trend with the Harmattan project offshore Egypt.

The joint venture, formed by BP and XRG in partnership with ADNOC, has committed $500 million to develop the field.

Arcius said on April 1, when it announced the final investment decision, that it plans to drill three development wells. The project also includes installing a fixed offshore platform and building a pipeline about 50 km long.

The pipeline will link the Harmattan field in the El Burg concession about 2.5 km north of Ras El-Barr to onshore facilities near Port Said on Egypt’s Mediterranean coast. The project is expected to produce around 125 million cubic feet of gas and 3,300 barrels of condensate per day for the domestic market.

Arcius said development work involving several local companies, including ENPPI, Petrojet and Petroleum Marine Services, is expected to be completed by 2028, with first production planned around the same time.

“The final investment decision to develop the Harmattan field marks a significant milestone for Arcius Energy,” said Chief Executive Naser Al Yafei. He added that the project would support regional energy security and contribute to economic growth.

New investment amid declining output

Beyond Harmattan, several recent developments point to increased gas activity in Egypt. In early April, Eni said exploration in the Temsah concession led to the Denise W-1 gas discovery.

The field is estimated to hold around 2 trillion cubic feet of natural gas. An accelerated development plan is under consideration to bring the reserves into production.

Offshore drilling activity is also increasing. Egyptian media reported last month that Shell and KUFPEC launched exploration operations on the West Meina block, described as one of the most significant campaigns in the Eastern Mediterranean.

At the government level, a broader plan is underway. Energy Capital & Power reported in February 2026 that Egypt’s Ministry of Petroleum and EGAS plan to drill more than 100 wells, including 14 in the Mediterranean, with total investment estimated at $5.7 billion.

Abdel-Latif Boureima