The US energy giant Chevron is currently in negotiations with the Egyptian government to expand its presence in the West Star block, which is located south of ExxonMobil’s giant Cairo and Masry blocks in the deep offshore near the Cyprus border, according to the Middle East Economic Survey (Mees). Chevron has also bid for two blocks out of last year’s 12-block offering by the Egyptian Natural Gas Holding Company (EGAS). The awards for the offerings are expected in the next few months.

The East Mediterranean has emerged as a highly dynamic area of operations for US major Chevron since its $5 billion takeover of Noble Energy in 2020. The firm has continued to expand its footprint in the basin since then, and although last year’s net output of 100,000 barrels of oil equivalent per day (boe/d) was just 3% of its global output, it sees the region as ripe for growth.

“we are excited about our entire portfolio in the Eastern Mediterranean,” CEO Mike Wirth told his firm’s earnings call early this month while adding: “We have got some good exploration acreage in the offshore Egypt area that we brought to the table as well and the expectation is for some exploration wells there in the coming couple of years”.

Chevron pledged no less than $120 million in investment in a new exploration concession after the Ministry of Petroleum approved a new exploration agreement granting it the rights to explore oil and gas in the West Star concession in the northeast Mediterranean, according to Bloomberg El-Sharq.