The Egyptian Natural Gas Holding Company (EGAS) and ExxonMobil Egypt Sign MoU for Gas Exploration in Egypt’s Mediterranean Coast

The Egyptian Natural Gas Holding Company (EGAS) has recently signed a preliminary memorandum of understanding (MoU) with ExxonMobil Egypt Upstream Limited, a subsidiary of the U.S.-headquartered energy giant ExxonMobil, to enhance gas exploration activities off Egypt’s Mediterranean coast.

As per the Egyptian Ministry of Petroleum and Mineral Resources, the MoU is aimed at implementing a new system in the Cairo and Masry offshore concession areas situated in the Mediterranean Sea. ExxonMobil had acquired exploration rights to these two blocks located in the outer Nile Delta back in 2023.

This collaboration aligns with the primary objective of the Ministry’s strategy to attract investments, boost gas production, and create favorable conditions for exploring prospective frontier areas. Moreover, the agreement is anticipated to accelerate the formulation of an integrated development and production plan in both blocks following positive outcomes from the exploratory drilling.

A comprehensive 3D seismic survey covering an area of around 11,000 square kilometers has been successfully conducted, and the collected data is currently under evaluation in preparation for the commencement of drilling activities.

Earlier this year, ExxonMobil made a significant gas discovery offshore Egypt by drilling the Nefertari-1 well in the North Marakia Block utilizing the Valaris-owned DS-9 drillship.

It is worth noting that the Mediterranean coast of Egypt has also attracted the attention of another energy giant, Eni, which recently revealed its plans to drill two additional wells at the Zohr field scheduled for next year.