Egypt has signed an $88 million minimum investment agreement with Chevron Egypt Holdings Ltd for oil and gas exploration in the Lotus offshore area in the Mediterranean, as the country continues to expand exploration activity and attract investment into its petroleum sector.
Karim Badawi, Minister of Petroleum and Mineral Resources, witnessed the signing of the agreement between the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings. The programme covers the drilling of two exploratory wells and the reprocessing of three-dimensional seismic data in the Lotus offshore area.
Located about 200 kilometres off Egypt’s Mediterranean coast, the Lotus area has water depths ranging from 2,000 to 2,800 metres. The exploration programme is expected to provide additional geological information and support the assessment of the area’s oil and gas potential.
Mr Badawi said expanding Egypt’s exploration map remains a key part of the ministry’s strategy to increase domestic oil and gas production. He said the ministry is continuing to offer new exploration areas to international companies while making use of existing geological and seismic data along with new seismic surveys.
The minister also said measures taken to settle investment partners’ outstanding dues have helped strengthen confidence in Egypt’s petroleum sector. According to Badawi, this has encouraged international companies to increase investments and resume exploration programmes.
The agreement was signed by Sayed Selim, Executive Managing Director of EGAS, and Andrew Degan, Chevron Exploration Manager for the Middle East, North Africa and Mediterranean. The signing was attended by Channa Kurukulasuriya, Chevron Egypt Country Manager, along with senior officials from the Ministry of Petroleum and Mineral Resources and EGAS.
Chevron currently holds interests in six offshore exploration areas in Egypt. These include Nargis, North El Dabaa, Lotus, North West Atoll, North Simian and North Cleopatra, where Chevron partners with Shell. In April, the Egyptian Cabinet approved a draft concession agreement for the Lotus area involving the Egyptian government, EGAS and Chevron Egypt Holdings Ltd. The agreement formed part of two oil and gas exploration concessions requiring minimum investments of $85 million.
The latest agreement adds to Chevron’s exploration activities in Egypt and supports the country’s efforts to expand offshore exploration. The drilling programme and seismic data reprocessing will provide further information on the geological characteristics of the deepwater Lotus area. Egypt has been seeking to increase exploration activity through new concession opportunities, seismic data and partnerships with international energy companies as it works to strengthen domestic production and develop additional oil and gas resources.
