EGAS, BP Sign Preliminary Deal to Drill Five Mediterranean Gas Wells

The Egyptian Natural Gas Holding Company (EGAS) has signed a memorandum of understanding with British oil and gas company BP to drill five new deepwater gas wells in the Mediterranean Sea, with drilling expected to begin in 2026. This initiative is part of Egypt's broader strategy to increase natural gas exploration and production amidst rising domestic demand and declining output from mature fields, as the country has shifted from being a net exporter to relying more on imports. The new wells, located at depths between 300 and 1,500 meters, will supply existing production facilities in the West Nile Delta. This agreement follows a series of contracts worth over $340 million signed by Egypt's Petroleum Ministry with major international companies such as Shell, Italy's Eni, and Arcius Energy, a BP joint venture with ADNOC's investment arm XRG, aimed at boosting exploration in the Mediterranean and Nile Delta regions. Egypt's gas production recently dropped significantly compared to 2021 levels, underscoring the urgency of these exploration efforts. The deal is part of a wider push by Egypt's government to revitalize its energy sector through increased foreign investment and development of new resources.