As Egypt continues to solidify its position as a regional energy hub, Cheiron Energy stands at the forefront of innovation and strategic growth in the country’s oil and gas sector. With a strong focus on both greenfield and brownfield developments, the company is leveraging cutting-edge technology and sustainable practices to maximize production efficiency, revitalize mature fields, and expand its operational footprint.

In this exclusive interview, Alan Linn, CEO of Cheiron Energy, shares insights into the company’s ambitious expansion plans, the role of strategic partnerships, and the adoption of advanced technologies such as seismic imaging and hydraulic drilling. He also discusses how Cheiron is aligning its operations with Egypt’s energy transition goals, incorporating sustainability initiatives, and navigating the evolving investment landscape.

Cheiron Energy has outlined ambitious expansion plans in Egypt. What factors make Egypt an attractive destination for these investments, and how do you see the company’s presence evolving in the region over the next five years?

We focus on green field and brown field developments with near field exploration potential, where we can add value by using technology and a cost-effective operational approach to improve field EUR. By investing in modern seismic we believe that our Gulf of Suez, Western Desert and Mediterranean assets will yield significant infill drilling and additional exploration potential. Making use of our existing infrastructure helps to ensure we maximise returns from our mature fields. Why look all over the world when there is considerable potential in our own back yard!

With the recently signed agreement for the Geisum and Tawila West region, what are the specific challenges and opportunities you foresee in boosting production and exploration activities in this area?

We have identified considerable near field potential in our operational area, which we are keen to explore and develop. The area is environmentally important, so it is essential our work programmes are designed to minimize the impact on the environment and biodiversity. Our work to date in the area has been carefully managed, and we have developed an extensive biodiversity database to inform and support all work in the area. Using modern seismic technology (OBN-3D) to improve the quality of data in the area, combined with careful environmental management will underpin exploration and development success.

What role do partnerships, like the one with EGPC and KUFPEC, play in driving Cheiron Energy’s strategic goals in Egypt?

Partnerships underpin everything we do in Egypt. In my experience working with partners ensures that a variety of views are tabled during the development of plans and budgets. The overall result is usually much better when a consensus is achieved.

You’ve mentioned plans to introduce advanced hydraulic drilling rigs for shale gas operations in Egypt. Could you elaborate on how this innovation will enhance efficiency and environmental protection in your operations?

I first worked with Hydraulic Drilling rigs in Venezuela, and their introduction changed our drilling paradigm in Venezuela. They are more reliable, very low NPT, they move quickly and most of all they are technically advanced, requiring minimal manual intervention during the drilling processes. This makes them safer, faster and much more energy efficient. They also have a much smaller environmental footprint which means site preparation is cheaper and environmental impact reduced. The technology is fully established, improving all the time, and is deployed worldwide. They are particularly efficient within desert environments.

How does Cheiron leverage advanced technologies to revitalize declining fields, and can you share specific examples of how these techniques have been successful in Egypt?

In lots of ways, we have just deployed nanotechnology within our Zaafarana field to improve productivity and generate incremental oil. We plan to test deep oil and gas potential within our Bapetco fields, which will involve the careful introduction of new technology. I already mentioned OBN 3D seismic and hydraulic drilling rigs.

What are your thoughts on the new incentives introduced by Egypt’s government to attract foreign investment in the energy sector, and how do they align with Cheiron Energy’s strategy?

Cheiron produces ~100KBOEPD, and is a strategic partnership with the government. As an Egyptian company, we are fully committed to invest in incremental oil and gas to boost domestic production, and the regular payment process and incremental production incentives, recently introduced by the Minister, are essential in returning the sector to good health and boosting domestic production.

With Egypt’s growing emphasis on sustainable energy practices, how is Cheiron incorporating sustainability and environmental stewardship into its operations and future projects?

We have very active energy transition programmes within each of our joint ventures, focusing upon flaring reduction; minimizing methane emissions; reducing diesel consumption and deploying solar to power our fields. We recently introduced solar to drive rod pumps in the Western desert. This is proving very successful and something we are keen to build upon.

What are your insights on the current state and future prospects of Egypt’s energy sector?

I think there are two energy sectors in Egypt. The one which catches the majority of headlines is the exploration for deep offshore gas in the Mediterranean, which is attracting the major IOCs, and could help secure Egypt’s energy future. Then, equally importantly, is the work being done today to maximise recovery from Egypt’s mature fields, by deploying marginal field methodologies to extract full value from these existing resources and exploring with new technologies to discover resources previously not visible on older seismic. Our business is keenly focused upon the latter, which provides oil and gas to support today’s Egyptian economy.

What are Cheiron Energy’s key short-term priorities in Egypt for 2025, and how do they align with your long-term vision for the region?

Our focus is primarily reinvesting revenues into our business to generate incremental production from existing fields, in parallel we work to identify near field and deeper resource potential to extend field lives and generate additional production. We aim to do this safely and efficiently, so a lot of work goes into managing the safety and process integrity systems within our mature assets, combined with investment to reduce emissions. In our vision we will extend field lives past existing concession end dates and produce oil and gas from our fields for many years to come.

Cheiron Energy has consistently participated in EGYPES. What are your main objectives for this year’s event, and how do you plan to showcase the company’s achievements and future strategies?

As an Egyptian company we consider EGYPES to be the most important industry event in the year. We have seven joint ventures in Egypt, in the Western Desert, Gulf of Suez and Mediterranean. We have considerable operational experience, and we believe it is important to showcase what local operators can achieve within Egypt. We are always looking for partners to help us expand and manage risk, and EGYPES is an ideal venue for us to support our industry and the government, helping make Egypt and attractive investment destination.