Cheiron Signs USD 42 Million Gas Exploration Deal Off Egypt's Coast

Egypt's Egyptian Natural Gas Holding Company (EGAS) and energy company Cheiron have signed an agreement committing a minimum investment of USD 42 million to explore for natural gas in the East Alexandria offshore concession in the Mediterranean Sea.

The agreement includes drilling three exploratory wells and reprocessing seismic data to assess the area's potential for new natural gas discoveries. The East Alexandria concession was awarded to Cheiron in June 2025 following an international bidding round organised by EGAS.

The signing took place in the presence of Minister of Petroleum and Mineral Resources Karim Badawi and Cheiron Chief Executive Officer David Chi. Badawi said the agreement would accelerate exploration activities, support new gas discoveries and increase Egypt's natural gas reserves as part of the government's strategy to boost domestic production and strengthen energy security.

Cheiron has been expanding its exploration and production operations across Egypt, including in the Western Desert, the Mediterranean and the Gulf of Suez. The company has also invested in drilling technologies to improve well productivity, alongside natural gas development projects.