The Egyptian Cabinet approved a draft concession agreement for the exploration and exploitation of natural gas and crude oil in the Lotus offshore area in the Mediterranean Sea between the Egyptian government, the Egyptian Natural Gas Holding Company (EGAS), and Chevron Egypt Holdings Ltd. The agreement, involving the US-based Chevron, is part of broader legislative approval for two concessions that require a minimum investment of $85 million.

The Cabinet also approved a draft concession agreement for the exploration, development, and exploitation of petroleum across several regions between the General Petroleum Company (GPC) and the state. The areas include the Gemsa and Ras Bahar development areas in the Eastern Desert; Ras Gharib (1) and Ras Gharib (1) Extension in the western Gulf of Suez and the Eastern Desert; the South Rafah ‘Abu Raad’ development area in the Sinai Peninsula; and the Abu Sennan development area in the Western Desert.

These agreements bolster the Ministry of Petroleum and Mineral Resources’ (MoPMR) strategy to attract new investment and accelerate exploration and prospecting activities. This approach aims to support production increases, maximize the utilization of natural resources, and reduce the national import bill.

The approvals were granted during Cabinet meeting number 88, chaired by Prime Minister Mostafa Madbouly.

Chevron holds exploration and development rights in several high-prospect areas across the Mediterranean and Red Sea, including Nargis Offshore Block (Mediterranean), North Sidi Barrani & North El Dabaa (Western Mediterranean), and Red Sea Block 1.