Minister of Petroleum and Mineral Resources Karim Badawi witnessed the signing of a new agreement with British Harbour Energy and a memorandum of principles (MoP) with Italy’s Eni, in a move aimed at attracting fresh investments, expanding exploration activities, and boosting Egypt’s natural gas production, noted a statement by the Ministry of Petroleum and Mineral Resources (MoPMR).

The agreement signed between the Egyptian Natural Gas Holding Company (EGAS) and Harbour Energy covers the onshore Desouq concession in the Nile Delta. Under the agreement, Harbour Energy will invest an initial $6 million and pay a $1 million signature bonus. The total investment could rise to around $18 million if new discoveries are made and subsequently developed.

The agreement includes the addition of two new blocks to the concession area and commits the company to drilling two exploration wells and conducting maintenance operations on an existing producing well.

The expansion reflects MoPMR’s strategy of granting adjacent acreage to existing concession holders to improve the economics of exploration and development projects while maximizing the use of available infrastructure.

The agreement builds on Harbour Energy’s recent exploration success in the Desouq area. During the fiscal year (FY) 2025/26, the company drilled the Ezz-1 and Ezz-2 wells, which resulted in the addition of approximately 35 billion cubic feet (bcf) of gas reserves. Harbour Energy plans to drill three further exploration wells during FY 2026/27.

In a separate development, Badawi also witnessed the signing of MoP between the Egyptian General Petroleum Corporation (EGPC) and Eni to renew the offshore Port Fouad development area in the Mediterranean Sea and its associated work program.

The MoP seeks to create a supportive investment framework that encourages additional spending on exploration and development activities, while also assessing opportunities to monetize undeveloped discoveries within the concession area.

According to the ministry, the initiative is expected to support the sustainability of existing production operations by maintaining current facilities and infrastructure, while opening the door for future development opportunities in surrounding areas.

The agreements come in continuation of Egypt’s recent upstream expansion efforts, including a binding Memorandum of Intent (MoI) signed between EGPC and Eni to renew the North Port Said concession, which incorporates the strategic El Gamil gas processing facilities.