KEY POINTS
- Egypt’s EGAS signed a deal with bp to drill five new Mediterranean gas wells starting in 2026.
- The agreement aims to accelerate natural gas development using existing West Nile Delta infrastructure.
- bp will expand its recent discoveries in Egypt while supporting local demand and LNG export ambitions.
Egypt’s efforts to increase gas production and draw in foreign investment for its energy sector have entered a new phase with the signing of a preliminary agreement with BP to drill five exploratory natural gas wells in the Mediterranean.
According to a government statement, Petroleum and Mineral Resources Minister Karim Badawi witnessed the signing of the memorandum of understanding between bp and the Egyptian Natural Gas Holding Company (EGAS) in London. The West Nile Delta, one of Egypt’s most promising gas areas, is where the planned wells will be drilled, with depths ranging from 300 to 1,500 meters.
Starting in 2026, the initiative intends to accelerate the development of unexplored reservoirs and use the offshore infrastructure already in place to swiftly bring new discoveries online. At a time when the world’s supply of liquefied natural gas is becoming more scarce, Egypt hopes the plan will strengthen its position as a regional hub for exports.
Egypt Bets on Foreign Partners to Accelerate Gas Development
According to Badawi, the deal supports the first tenet of his ministry’s plan, which is to draw in new funding for exploration and production. “We are dedicated to establishing a stable and competitive investment environment for global oil and gas firms,” he said.
Bp executives agreed with that statement. According to Gas & Low Carbon Energy’s executive vice president, William Lin, the company plans to use its technical know-how to assist Egypt in “adding new gas resources and accelerating production” while generating value for its investors. In order to meet local energy demand and unlock additional resources throughout the decade, BP will collaborate closely with the government, said Nader Zaki, regional president for the Middle East and North Africa.
The new deal expands on BP’s recent exploration successes, which include the West Nile Delta’s Fayoum-5 and King-2 discoveries. The basin’s potential as a long-term supply source for LNG exports and Egypt’s domestic market was highlighted by both wells.
Egypt sees alliances with international companies like BP as crucial to securing future gas supplies, stabilizing revenues, and enhancing its position as a vital supplier to Europe and beyond. Egypt has been dealing with growing energy and financial difficulties.
