Chevron, Höegh Evi, SLB, and Energean helping Egypt expand energy horizons to fuel its future

Given the ongoing global energy security concerns, Egypt has taken further steps to deepen energy alliances with international players, including Chevron, Höegh Evi, SLB, and Energean. These and similar undertakings are paving the way to boost exploration, liquefied natural gas (LNG), and sustainability efforts.

While acknowledging achievements in seismic surveys and floating regasification units to meet peak energy demand, Egypt’s Minister of Petroleum and Mineral Resources, who recently met with several international oil, gas, petrochemical, and mining companies, emphasized shared responsibility in driving progress and sustainability to increase the country’s natural gas resources and boost investor confidence. Currently, the petrochemicals sector is perceived to be positioned as a high-potential investment area.

Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, affirmed that the results achieved by the Egyptian petrochemical industry and the new projects currently being implemented reflect the success of the second axis of the ministry’s strategy to support the petrochemical industry as a fundamental pillar for maximizing added value from natural resources and strengthening the country’s position as a regional hub for energy and manufacturing industries.

While thanking the Egyptian Petrochemicals Holding Company and its subsidiaries for the efforts made to overcome challenges, the minister pointed out that new projects, which are being implemented, would contribute to creating a qualitative shift in the petrochemical sector, with the next phase set to witness an increase in the production of natural gas as the main feedstock for the petrochemical industry.

As part of the Ministry of Petroleum and Mineral Resources’ commitment to strengthening partnerships with international partners, Badawi’s meeting with several heads and representatives of foreign oil, gas, petrochemical, and mining companies operating in Egypt emphasized the importance of a shared role in driving progress and sustainability by reducing the decline in gas production, achieving output stability, and beginning the journey back to high production rates.

The minister highlighted the state’s commitment to President Abdel Fattah El-Sisi‘s directives, which include paying partners’ dues over the past months and continuing regular monthly payments, as a way to enhance confidence in the Egyptian market and stimulate further investment.

He spotlighted the beginning of seismic survey operations with approved exploration commitments, and Egypt’s success in equipping and operating floating storage and regasification units (FSRUs), enabling the country to meet peak summer consumption without interruption or load shedding.

Badawi explained that the petrochemicals sector offers significant investment opportunities, both through existing projects and new partnerships, representing a promising area for international companies seeking to expand and increase their investments in Egypt. Among the minister’s recent meetings is the one with SLB regarding technological development in oil and gas exploration.

While addressing ways to enhance cooperation in modern exploration, production, and research technologies, SLB’s delegation, headed by Jesus Lamas, President of SLB for the Middle East and North Africa region, reviewed its plans to support Egyptian petroleum activities through solutions such as offshore ocean bottom node (OBN) seismic survey technology, integrated digital data analysis, and artificial intelligence (AI) deployment in interpreting geological data.

Cooperation to bolster the efficiency of producing fields, develop digital transformation systems, and expand technical training programs was also covered during the meeting, alongside the available investment opportunities and new areas for research and exploration in the Mediterranean Sea. SLB has assisted in various initiatives and projects, most notably the Egypt Exploration and Production Gateway (EUG) project and regional seismic survey projects in the Red Sea and the Gulf of Suez.

The minister claims that partnerships with major international companies will support the use of new technology to help the ministry’s goals of increasing discoveries and production while maintaining the highest levels of safety and environmental sustainability. With this at the forefront, Badawi met with Mathios Rigas, CEO of Energean, to discuss the current cooperation with the petroleum sector regarding maximizing the utilization of the North Idku, North Amriya, and Abu Qir natural gas production areas.

Energean, which presented a comprehensive technical work plan for these areas, also underlined the importance of accelerating the drilling of the exploratory well in the company’s concession area in the Western Desert, reflecting the firm’s commitment to intensifying its operations in Egypt. The duo discussed new gas exploration opportunities in the Mediterranean offshore areas, alongside solutions to enhance the efficiency of exploration, production, and research operations in Egypt.

The minister held a separate meeting with Morten Hauge, Chairman of Höegh Evi, and Erik Nyham, the firm’s CEO, regarding the follow-up of the existing cooperation in LNG import infrastructure represented by gasification ships, as part of LNG imports in Egypt, which are received through Hoegh Galleon, described as the first gasification unit at the Sumed Port in Ain Sokhna.

Badawi deems the cooperation with the Norwegian firm as important for securing domestic energy supplies and supporting Egypt’s infrastructure for receiving and trading liquefied natural gas. The two players also talked about LNG workforce upskilling, clean energy, and carbon reduction projects, which support the country’s strategy for energy transition and emissions reduction.

Egypt, which sees Chevron as a strategic partner to enhance Mediterranean exploration and reduce emissions, is keen on enhancing cooperation in natural gas exploration and production within the Mediterranean Sea, as illustrated during the minister’s meeting with Freeman Shaheen, President of the Global Gas Sector at Chevron Corporation.

The duo highlighted the existing cooperation in research and exploration activities in the Mediterranean, especially in the Narges Offshore and North Dabaa areas, alongside the Lotus sector.

Badawi stressed the need to accelerate the development of the Narges field and start the drilling of the Narges-2 appraisal well, in addition to expediting the drilling of the exploratory well in the North Dabaa Offshore area in the western Mediterranean.

The minister also commended the achievements in emissions cuts under the joint memorandum of understanding with Chevron, which serves to enhance capacity building and exchange best practices in carbon reduction projects, particularly related to methane emissions management.

Badawi sees the U.S. energy giant as an important strategic partner for the Egyptian petroleum sector, helping enhance the country’s efforts to meet energy demand and increase domestic gas production, while simultaneously adhering to emission reduction and sustainable energy transition goals.

These meetings with Chevron, Energean, SLB, and Höegh Evi took place shortly after BP struck a deal with Egypt to embark on a five-well drilling campaign in the Mediterranean Sea, aiming to find more gas to extend the lifetime of existing production facilities in the West Nile Delta.

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