The state-owned Egyptian Natural Gas Holding Company (EGAS) has signed a $42 Mn agreement with for natural gas exploration in the East Alexandria offshore area in the Mediterranean Sea with Egyptian exploration and production company Cheiron, according to a statement by the Egyptian Ministry of Petroleum and Mineral Resources on November 9.

The agreement includes drilling three exploratory wells and reprocess seismic data, aiming to support efforts to assess the area’s potential and open up new prospects for discovering additional natural gas resources.

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi praised Cheiron’s role in exploration, development and production activities in Egypt, as well as its expansion of operations in the Western Desert, the Mediterranean Sea and the Gulf of Suez.

The East Alexandria offshore area is one of the areas EGAS offered as part of its international bidding round. The award of the area to Cheiron was announced in June 2025, as part of the petroleum ministry’ strategy to offer new investment opportunities to international companies and expand exploration activities in promising concession areas.