• Egypt has signed three new oil and gas exploration agreements with Apache, Dragon Oil, and Perenco, targeting the Western Desert, Gulf of Suez, and North Sinai regions.
• These deals, totaling over $121 million, follow a recent memorandum of understanding with BP to drill five new wells in the Mediterranean.
• The push for new gas discoveries aims to reverse declining production, meet rising domestic demand, and restore Egypt's role as a net gas exporter, with a target of 6.6 billion standard cubic feet per day by 2027.

Egypt relies on multinational companies operating within its borders to discover new natural gas fields, facing significant energy challenges. A memorandum of understanding signed with BP to drill five new wells in the Mediterranean Sea exemplifies this dynamic.

Following last week's memorandum of understanding with oil major BP, Egypt has signed three new oil and gas exploration agreements. These aim to strengthen its national production potential. The agreements emphasize gas amid declining production and mounting domestic consumption pressure.

According to specialized press reports on September 15, these deals concern areas of interest located in the Western Desert, the Gulf of Suez, and North Sinai regions.

The Ministry of Petroleum announced the new agreements involve Apache Corporation (United States), Dragon Oil (an ENOC subsidiary, UAE), and Perenco Egypt. First, Apache will invest approximately $35 million in the Western Desert. Next, Dragon Oil plans nearly $40.5 million in the Gulf of Suez. Finally, Perenco will commit $46 million in North Sinai.

These investments align with other contracts signed earlier this month. Cumulatively valued at $340 million, those agreements engage Anglo-Dutch multinational Shell, Italian major Eni, and Arcius Energy—a gas joint venture between BP and XRG, an ADNOC subsidiary, launched in December 2024.

Egypt has multiplied exploration agreements targeting new gas fields in recent weeks due to a decline in gas production in recent years. This decline stems from aging fields and rising domestic demand.

Drilling operations are expected to commence in the coming months. Authorities hope new discoveries will support production capacity, as Egypt aims to regain its role as a net exporter to the Mediterranean and Asia. In August 2025, Prime Minister Mustafa Madbouly set a target to increase production to 6.6 billion standard cubic feet per day by 2027, up from approximately 4.1 billion currently.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum

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