Egypt is pushing aggressively to unlock new oil and gas investment, simultaneously launching a new bidding round for three offshore blocks in the Gulf of Suez and approving two landmark concession agreements — including a deal with US supermajor Chevron worth a minimum of $85 million.
The Ministry of Petroleum and Mineral Resources (MoPMR) has opened submissions for three North Shadwan development blocks — North Shadwan-1, North Shadwan-2, and North Shadwan-3 — via the Egypt Upstream Gateway (EUG) digital platform, with a deadline of May 17. The blocks are part of the country’s Open Blocks Licensing Program (OBLP), under which 49 blocks are continuously available for bidding throughout the year.
North Shadwan-1, covering four square kilometres, holds an upside potential of 25 million barrels (mmbbl) of stock tank oil initially in place (STOIIP) and requires an estimated $16 million investment to reach a production rate of 4,150 barrels per day (bbl/d). North Shadwan-2, at nine square kilometres, holds 3.1 mmbbl of remaining reserves and would require $10 million to bring production to 2,000 bbl/d. The largest of the three, North Shadwan-3 — also spanning nine square kilometres — boasts 26.6 mmbbl of proven reserves and carries a $65 million investment requirement for offshore wells and infrastructure to achieve 5,000 bbl/d of output.
Separately, Egypt’s Cabinet, in its 88th meeting chaired by Prime Minister Mostafa Madbouly, approved two concession agreements that together require a minimum $85 million investment. The first is a concession for the exploration and exploitation of natural gas and crude oil in the Lotus offshore area of the Mediterranean Sea, involving the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings Ltd. Chevron already holds exploration and development rights across several high-prospect areas in Egypt, including the Nargis Offshore Block in the Mediterranean and Red Sea Block 1.
The second agreement was approved between the General Petroleum Company (GPC) and the state, covering multiple development areas including Gemsa and Ras Bahar in the Eastern Desert, Ras Gharib in the western Gulf of Suez, South Rafah in the Sinai Peninsula, and Abu Sennan in the Western Desert.
The MoPMR said the approvals were part of its broader strategy to attract new investment, accelerate exploration, increase production, and reduce the country’s import bill.
Source: Egypt Oil & Gas (egyptoil-gas.com)