EGAS and BP Partner to Boost Gas Production in Mediterranean

The Egyptian Natural Gas Holding Company (EGAS) and BP have signed a preliminary agreement to drill five new gas wells in the Mediterranean Sea, as part of Egypt's efforts to increase exploration and production amidst declining gas output. Drilling is expected to commence next year.

The Egyptian Natural Gas Holding Company, known as EGAS, has entered into an initial agreement with British multinational BP to initiate the drilling of five new gas wells in the Mediterranean Sea. This development is part of Egypt's broader strategy to enhance its exploration and production capabilities in response to rising domestic demand and dwindling output from aging fields.

Once a net exporter of natural gas, Egypt has increasingly relied on imports due to declining production and a lack of investment in new extraction projects. The current gas production figures, recorded at 3,545 million cubic meters in May, represent a significant drop from March 2021 levels, as reported by the Joint Organisations Data Initiative.

In a related announcement on August 30, the Petroleum Ministry declared a series of contracts with international energy companies, worth over $340 million. These agreements, aimed at exploring oil and gas resources in the Mediterranean and Nile Delta, feature major players like Shell and Italy's Eni, alongside Arcius Energy, jointly owned by BP and the investment arm of ADNOC, XRG.

(With inputs from agencies.)