Egypt's EGAS and Cheiron sign a gas exploration agreement with over $42 million in investment for three exploratory wells and seismic data reprocessing offshore Alexandria.
Egypt's state-owned Egyptian Natural Gas Holding Company (EGAS) and energy company Cheiron have signed an agreement involving a minimum investment of more than $42 million to explore for natural gas in the East Alexandria Offshore area of the Mediterranean Sea. The agreement covers the drilling of three exploratory wells and the reprocessing of seismic data to assess the area's gas potential and identify additional resources.
The presence of Karim Badawi, Egypt's Minister of Petroleum and Mineral Resources, and David Chi, Chief Executive Officer of Cheiron. The investment commitment forms part of Egypt's efforts to accelerate upstream exploration, expand domestic natural gas production and strengthen its energy security.
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The East Alexandria Offshore block was awarded to Cheiron in June 2025 following an international bidding round conducted by EGAS. The latest agreement enables the company to begin its exploration programme in the concession area, combining new drilling activities with the reassessment of existing seismic data. These activities are intended to improve understanding of the area's geological potential and identify locations that could support future gas discoveries.
Karim Badawi said the agreement represents an important step towards accelerating exploration activities and enabling investment partners to launch work programmes in new areas. He highlighted the importance of discovering additional oil and gas resources, developing existing fields and maximising production from operational assets. The ministry aims to increase domestic output, meet a larger share of local energy requirements and strengthen the country's energy supply security in the coming years.
Cheiron has an established presence in Egypt, with exploration, development and production operations across the Western Desert, Mediterranean Sea and Gulf of Suez. The company also works with Egypt's petroleum sector through Badr El-Din Petroleum Company, where operational activities and development programmes are being expanded.
The ministry has highlighted Cheiron's adoption of horizontal drilling and hydraulic fracturing technologies in the Western Desert to improve well productivity. The company is also involved in developing and producing natural gas from the West El Burullus field through Petroweb. The field began producing approximately 45 million cubic feet of gas per day in November 2025.
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Cheiron CEO David Chi described the East Alexandria agreement as an important addition to the company's Egyptian portfolio. He also acknowledged the government's efforts to improve the investment environment and address project-related challenges, which he said would support faster investment and the expansion of exploration and production activities.