Karim Badawi, Minister of Petroleum and Mineral Resources, witnessed the signing of an $88 million minimum investment agreement between the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings Ltd for oil and gas exploration in the Lotus offshore area in the Mediterranean.

EGAS Executive Managing Director Sayed Selim and Chevron Exploration Manager for the Middle East, North Africa, and Mediterranean Andrew Degan signed the agreement in the presence of Chevron Egypt Country Manager Channa Kurukulasuriya and senior officials from the ministry and EGAS.

The agreement covers drilling two exploratory wells and reprocessing three-dimensional seismic data in an area about 200 km off the Mediterranean coast, where water depths range from 2,000 to 2,800 meters.

Badawi said expanding Egypt’s exploration map remains a key part of the ministry’s strategy to increase domestic oil and gas production. He added that the ministry continues to offer new areas to international companies and use available geological and seismic data alongside new seismic surveys.

He said steps to settle investment partners’ dues have strengthened confidence in Egypt’s petroleum sector, encouraging companies to increase investments and resume exploration programs.

Chevron currently invests in six offshore exploration areas in Egypt, including Nargis, North El Dabaa, Lotus, North West Atoll, North Simian, and North Cleopatra, where it partners with Shell.

In April, the Cabinet approved a draft Lotus concession agreement between the Egyptian government, EGAS, and Chevron Egypt Holdings Ltd., as part of two concessions requiring at least $85 million in investment.