The Egyptian Natural Gas Holding Company (EGAS) is preparing to launch 5 new investment blocks in the Mediterranean Sea for natural gas development before the end of the first half of FY2025/2026, according to a government official.
The official told Al Arabiya Business that the bidding process will be carried out through the Egypt Exploration Gateway, which will receive offers from international partners interested in acquiring the new blocks.
This comes in line with the Egyptian government’s strategy to boost oil and natural gas production over the next two years.
He added that the Ministry of Petroleum aims to drill a minimum of 10 to 12 new development wells in the targeted exploration areas.
Through its state-owned companies and the Egyptian General Petroleum Corporation (EGPC), the ministry seeks to attract more foreign investment into virgin concession areas that have not been developed in recent years.
Investments in exploration and drilling are expected to exceed $350 million, potentially increasing daily natural gas production by more than 850 million cubic feet, which would be added to Egypt’s current output.
According to the official, EGAS has completed seismic survey programs—conducted in cooperation with global firms and experts—covering more than nine exploration areas that will be gradually offered to investors in the coming period.
He explained that seismic surveys provide comprehensive data on oil and gas reservoirs, encouraging foreign partners to commit fresh capital to exploration. These surveys confirm the presence of geological formations containing hydrocarbon deposits, after which partners evaluate opportunities with preliminary indicators of gas accumulation ranging from 15% to 20%.
The official also noted that the Ministry of Petroleum plans to settle part of its dues to foreign partners in the last quarter of 2025, which will encourage companies to participate in the bidding rounds by submitting financial and technical offers. EGAS will then evaluate these offers and award concessions accordingly.
In parallel, EGAS has agreed with local gas operators to implement an exceptional plan for the current and upcoming fiscal years to secure domestic natural gas supplies. The ultimate goal is to increase local production by intensifying exploration and achieving new discoveries, paving the way for daily output to reach around 6.6 billion cubic feet by 2027.
On September 11, EGAS announced 29 new natural gas discoveries in the Mediterranean, Western Desert, and Gulf of Suez during fiscal year 2024–2025, along with three new wells in the Mediterranean and Delta. These discoveries boosted reserves, adding 1.85 trillion cubic feet of gas during the year.
In a company statement, EGAS Executive Managing Director Mahmoud Abdel Hamid revealed that nine new exploration blocks were awarded, with six new agreements finalized. Total committed investments reached approximately $479 million, with signature bonuses amounting to $14.5 million.