Several multinational oil and gas companies, including Chevron, have withdrawn from Egypt’s Red Sea concession blocks following unsuccessful exploration efforts, according to the Egyptian Ministry of Petroleum.
In 2019, Egypt awarded exploration licenses in the Red Sea to Chevron, Shell, and Abu Dhabi’s Mubadala Investment Company through an international bidding round aimed at positioning the country as a regional energy hub.
“These companies invested millions of dollars within the agreed timelines,” said Moataz Atef, ministry spokesperson, during a press briefing.
Atef revealed that one unnamed company invested $34 million into a contract that initially required only $10 million, yet no commercial discoveries were made.
Chevron confirmed its exit from Red Sea Block 1, where it held a 45% operated stake. The block is located in the northern Red Sea and was being developed in partnership with Australia’s Woodside Energy.
“Chevron remains committed to Egypt’s energy sector and will continue exploration activities in the Mediterranean,” said Sally Jones, Chevron spokesperson.
Shell, which operated Block 3 in partnership with Woodside and QatarEnergy, also exited. Shell declined to comment, while Mubadala, Woodside, and QatarEnergy have yet to respond.
Despite these setbacks, Atef emphasized the ministry’s continued confidence in the Red Sea’s resource potential.
He noted that both Chevron and Shell have already applied for new exploration licenses in the Mediterranean, demonstrating sustained interest in Egypt’s energy sector.
Jones added that Chevron currently holds stakes in three other exploration blocks in Egypt, including two operated blocks in the Mediterranean.
According to the Joint Organizations Data Initiative, Egypt’s gas production fell from 4.6 billion cubic meters in January 2024 to 3.6 billion cubic meters in January 2025, despite government measures to stimulate output.
To ensure energy stability this summer, Atef announced plans to deploy three to four floating storage and regasification units (FSRUs).
The government has also secured LNG shipments and put in place an emergency plan to manage unexpected demand surges.
Last summer, Egypt faced severe energy shortages due to heightened cooling needs, leading to power cuts and $1.18 billion in energy import costs.
