KEY POINTS
- Egypt signed four oil and gas exploration deals worth $340 million with Shell, Eni, BP-backed Arcius Energy, and Russia’s Zarubezhneft.
- The agreements cover 10 wells across the Mediterranean and Nile Delta, as Cairo struggles with falling production and rising demand.
- Gas output has dropped more than 40% since 2021, forcing Egypt—once a net exporter—to rely increasingly on costly imports.
Egypt has signed four oil and gas exploration agreements worth more than $340 million, a move the government hopes will slow declining production and reassert the country’s role as a regional energy player.
The Petroleum Ministry said Saturday the deals were finalized with Shell, Eni, Arcius Energy—a joint venture between BP and Abu Dhabi’s ADNOC—and Russia’s Zarubezhneft.
The state-run Egyptian Natural Gas Holding Company (EGAS) signed on behalf of Cairo. Collectively, the contracts provide for the drilling of 10 wells across the Mediterranean and Nile Delta.
From Exporter to Importer, Egypt Hunts for New Finds
Egypt, once hailed as a gas exporter, has been increasingly forced to import to meet rising local demand as aging fields decline and new investment fails to keep pace.
Gas production in May fell to 3.55 billion cubic meters, down more than 40 percent from levels recorded in early 2021, according to the Joint Organisations Data Initiative.
The largest of the new agreements went to Shell, which will commit $120 million to drilling three wells in the Mediterranean’s Merneith offshore area. Italy’s Eni, a long-time operator in Egypt, signed a $100 million deal for three wells in East Port Said offshore.
Arcius Energy—a 51 percent BP and 49 percent ADNOC venture—secured rights to operate in North Damietta offshore in a $109 million deal. Zarubezhneft, the Russian state-owned firm, will spend $14 million drilling four wells in the onshore North El-Khatatba block of the Nile Delta.
Officials say the agreements reflect Cairo’s determination to attract fresh foreign capital into exploration, part of a broader effort to shore up energy security, revive export capacity, and stabilize an economy under strain from fuel import bills.
