Egypt's Minister of Petroleum and Mineral Wealth, Engineer Karim Badawi, witnessed the signing of a new agreement for natural gas exploration in the East Alexandria offshore area of the Mediterranean Sea. The deal, valued at a minimum investment of $42 million, aims to boost exploration activities and discover new natural gas reserves. The agreement was signed between the Egyptian Natural Gas Holding Company (EGAS) and Cairn.
The agreement includes a work program that involves drilling three exploratory wells and reprocessing seismic data. This will help improve the geological evaluation of the area and identify promising opportunities for natural gas exploration. Egas's Managing Director, Engineer Sid Salem, and Cairn's Chief Executive Officer for Commercial Affairs, Amr Thabet, signed the agreement. Cairn's CEO, David Chee, was also present at the signing ceremony.
The East Alexandria area is part of the global bidding round and was awarded to Cairn in June 2025. Minister Badawi emphasized that the new agreement represents a crucial step in accelerating exploration activities and providing investment partners with the opportunity to execute work programs in new areas. This will support the discovery of new natural gas reserves and add to Egypt's petroleum and natural gas reserves.
Minister Badawi highlighted the importance of intensifying exploration activities while accelerating the development of discovered fields and maximizing production. He praised Cairn's role in Egypt's oil and gas sector, particularly in the Western Desert, Mediterranean Sea, and Gulf of Suez. The minister also acknowledged Cairn's partnership with the Egyptian government through Badr El-Din Petroleum Company.
Cairn's CEO, David Chee, expressed his satisfaction with the new agreement, stating that it represents a significant addition to the company's portfolio in Egypt. He praised the Egyptian Ministry of Petroleum's efforts to improve the investment climate and provide necessary support to companies. Chee emphasized that these efforts enable Cairn to accelerate investments and implement its plans to expand exploration and production activities in Egypt.
The agreement is part of Egypt's strategy to expand exploration activities and attract international investments to promising areas. The Egyptian government aims to increase domestic production and meet the country's growing energy demands. The Ministry of Petroleum and Mineral Wealth has been working to improve the investment climate and provide support to companies operating in the sector.
The signing ceremony was attended by several officials, including Yusuf Marwan, Director General of Petroleum and Mineral Wealth Contracts and Agreements, and Egas's senior executives. The agreement marks a significant development in Egypt's oil and gas sector, and it is expected to contribute to the country's energy security and economic growth.
Key points
- Egypt's Ministry of Petroleum and Mineral Wealth has signed a $42 million agreement with Cairn for natural gas exploration in the East Alexandria offshore area.
