Egypt has entered into an $88m minimum investment agreement with Chevron for oil and gas exploration in the Lotus offshore concession in the Mediterranean.
The deal, signed by the Egyptian Natural Gas Holding Company and Chevron, covers the drilling of two exploratory wells and the reprocessing of existing three-dimensional seismic data.
The Lotus concession is located about 200 kilometres offshore, where water depths range between 2,000 and 2,800 metres. The area has not previously had deep exploratory wells drilled, making the programme an opportunity to search for new oil and gas resources.
Egyptian Petroleum Minister Karim Badawi said expanding exploration into new areas remained an important part of the country’s efforts to increase domestic oil and gas output.
He said the government would continue making prospective areas available to international energy companies while using geological information and new seismic surveys to identify locations with exploration potential.
According to the ministry, measures taken to clear outstanding payments owed to international oil and gas companies have improved investor confidence in Egypt’s petroleum industry. The government expects the renewed interest to support increased drilling, field development and faster execution of production projects.
Egypt also plans to present additional investment opportunities across the Mediterranean, Western Desert, Nile Delta, Gulf of Suez, Sinai and southern parts of the country.
Badawi said further seismic surveys would provide improved geological data and help companies identify areas with potential for future exploration and investment.
Chevron already participates in six offshore oil and gas exploration areas in Egypt, including Nargis, North Dabaa, Lotus, Northwest Atoll, North Simian and North Cleopatra in the western Mediterranean. The company partners with Shell in the North Cleopatra concession.
The minister said the Lotus exploration programme could lead to new discoveries and contribute to higher domestic oil and gas production.
