The official revealed that Pharaonic Petroleum Company, which operates the area on behalf of Shell, BP, and EGAS, has completed the initial engineering studies for the project.
The Egyptian Natural Gas Holding Company (EGAS), affiliated with the Ministry of Petroleum, has reached an agreement with Shell and BP to commence production from the Harmattan gas field in the Mediterranean Sea during the first quarter of 2026, with initial investments estimated at $370 million, according to a government official who spoke to Asharq Bloomberg.
The official revealed that Pharaonic Petroleum Company, which operates the area on behalf of Shell, BP, and EGAS, has completed the initial engineering studies for the project.
The field is expected to produce 125 million cubic feet of gas and 3,300 barrels of condensates per day.
The official further stated that Pharaonic Petroleum is currently negotiating to lease a drilling rig and plans to issue several tenders in the coming period to secure long-term drilling services and equipment for the development of the Harmattan area.
The project involves drilling three wells, constructing an offshore platform, and installing a 50-kilometer gas pipeline to transport gas to an onshore processing plant.
The development is expected to be completed by the end of 2025 in shallow waters, with production beginning in the first quarter of 2026, the official confirmed.
Egypt aims to boost its natural gas production to approximately 5 billion cubic feet per day by the end of this year, compared to the current production rate of 4.3 billion cubic feet per day.
Recently, the Egyptian government has announced plans to drill 46 new oil and gas exploration wells during the current fiscal year, with investments totaling $748.5 million.
Minister of Petroleum and Mineral Resources, Karim Badawi, stated that 15 agreements are currently under negotiation, with $20 million in signature bonuses.
