The agreement forms part of Egypt's broader strategy to attract foreign investment, accelerate exploration activities, and increase domestic oil and gas production.
Egypt has signed a new natural gas exploration agreement with Cheiron for the East Alexandria offshore block in the Mediterranean Sea, involving minimum investments of more than $42 million.
The agreement, signed between the Egyptian Natural Gas Holding Company (EGAS) and Cheiron in the presence of Minister of Petroleum and Mineral Resources Karim Badawi, includes drilling three exploratory wells and reprocessing seismic data to assess the area's hydrocarbon potential and identify new gas resources.
The East Alexandria block was awarded to Cheiron in June 2025 following an international bidding round launched by EGAS. The agreement forms part of Egypt's broader strategy to attract foreign investment, accelerate exploration activities, and increase domestic oil and gas production.
Badawi said the agreement would allow investment partners to begin exploration programs in new areas, potentially leading to additional discoveries and reserves. He emphasized that expanding exploration, accelerating field development, and maximizing production from existing assets remain central to Egypt's efforts to reduce reliance on imports and strengthen energy security.
The minister highlighted Cheiron's expanding operations across the Western Desert, Mediterranean Sea, and Gulf of Suez, including its partnership through Badr El Din Petroleum Company (BAPETCO).
He also praised the company's adoption of horizontal drilling and hydraulic fracturing technologies in the Western Desert to improve well productivity, alongside its ongoing natural gas development activities at the West Burullus field through PetroWeb.
Cheiron CEO David Chi described the agreement as an important addition to the company's portfolio in Egypt, reflecting its growing partnership with the country's petroleum sector.
Chi also acknowledged the ministry's efforts to improve the investment environment and address operational challenges, saying the support would help Cheiron accelerate investments and expand its exploration and production activities.
The agreement was signed by EGAS Executive Managing Director Sayed Selim and Cheiron Chief Commercial Officer Amina Taha, in the presence of Chi and senior petroleum sector officials.
