Egypt's EGAS signs gas exploration deal with Cheiron in East Alexandria Offshore

Egypt's Ministry of Petroleum and Mineral Resources announced a new agreement under which Cheiron will explore for natural gas in the East Alexandria Offshore area of the Mediterranean Sea. The deal was signed with the state-owned Egyptian Natural Gas Holding Company (EGAS).

TradeArabia reported that the agreement commits the company to a minimum investment of more than $42 million to drill three exploration wells and reprocess seismic data. The programme aims to assess the area's natural gas potential and identify additional resources, TradeArabia said. Egypt Oil & Gas described it as a $42 Mn agreement and called Cheiron an Egyptian exploration and production company, citing a ministry statement.

How we got here

• June 2025: Daily News Egypt reported that East Alexandria Offshore was one of the blocks EGAS offered in its international bid round and that it was awarded to Cheiron in June 2025. The newspaper said this was part of a ministry strategy to open new opportunities to international companies and widen exploration in promising concession areas. Egypt Oil & Gas said the award was announced in June 2025.
• Monday: Egyptian Gazette reported that Minister of Petroleum and Mineral Resources Karim Badawi witnessed the signing of the agreement on Monday, with minimum investments exceeding $42 million. Daily News Egypt said EGAS managing director Sayed Selim signed for the state company and Amina Taha, chief commercial officer, signed for Cheiron. It said they signed in the presence of Cheiron chief executive David Chee, while Egyptian Gazette spelled the name David Chi.
• November 9: Egypt Oil & Gas said the ministry's statement on the agreement was issued on this date. According to Egypt Oil & Gas, the statement said Badawi praised Cheiron's role in exploration, development and production in Egypt and its expansion in the Western Desert, the Mediterranean Sea and the Gulf of Suez.
• November 9: Daily News Egypt reported that Badawi said the new agreements were an important step towards speeding up exploration and letting partners start work programmes in new areas, which could lead to new discoveries and add to oil and gas reserves. TradeArabia carried similar remarks and added that intensifying exploration remains central to the ministry's strategy to boost domestic output, meet a greater share of local energy demand and strengthen energy security in the coming years.
• November 9: Daily News Egypt said Chee called the agreement an important addition to Cheiron's Egyptian portfolio that reflected a deepening partnership with the petroleum sector. It said he credited Badawi and the ministry with improving the investment climate and removing obstacles to projects. Daily News Egypt also reported that Badawi commended the company for adopting horizontal drilling and hydraulic fracturing in the Western Desert and for its work on the West Burullus field through Petroweb.