The Egyptian Natural Gas Holding Company (EGAS) has awarded six new oil and gas exploration blocks to a group of international energy companies, marking a strategic push to attract more foreign investment into the country’s natural gas sector.
The awarded areas include four offshore blocks in the Mediterranean Sea, offered through the 2024 international bid round via the Egypt Upstream Gateway (EUG), and two onshore blocks located in the Nile Delta and North Sinai.
These new contracts are expected to attract approximately $245 million in investments and include plans to drill at least 13 exploratory wells during the initial exploration phase.
Among the offshore blocks:
North Samian and Northwest Atoll were awarded to a consortium comprising Chevron Egypt and BG (Shell), with plans to drill two exploratory wells in each area.
North Ras El Tin was awarded to IEOC Production (Eni), which plans to drill three exploratory wells.
East Alexandria went to Cheiron Egypt, which also aims to drill three wells.
Onshore activities include:
North Tanta, where IPR will drill two exploratory wells.
El Fayrouz block in North Sinai, where Perenco will conduct a 3D seismic survey and drill one well.
The announcement aligns with broader efforts by Egypt’s Ministry of Petroleum and Mineral Resources to bolster hydrocarbon exploration and attract international partners.
The EUG platform continues to offer additional investment opportunities, including several undeveloped offshore discoveries in the Mediterranean. Bidding for these assets will close on July 2, 2025, with results expected shortly thereafter.
This round of awards follows an earlier allocation of seven exploration and production blocks this month under the Egyptian General Petroleum Corporation (EGPC), which is expected to lead to at least 17 more exploratory wells and attract further international capital.
However, this push comes amid a notable decline in Egypt’s natural gas output. Production dropped to 3,485 million standard cubic metres in April 2025, according to the Joint Organisations Data Initiative (JODI), down significantly from the country’s peak of 6,133 million standard cubic metres in March 2021.
The decline raises concerns about meeting both domestic and export demand as supply tightens.
Through continued licensing rounds and foreign partnerships, Egypt is aiming to reverse this trend and solidify its position as a key energy player in the region.
