The French energy major, TotalEnergies, signed a memorandum of understanding (MoU) with the Egyptian Natural Gas Holding Company (EGAS) to cooperate on natural gas exploration in the Western Mediterranean. The agreement, according to a Cabinet statement, covers a large offshore area and aims to advance early-stage exploration in one of Egypt’s most promising frontier regions.

Karim Badawi, Minister of Petroleum and Mineral Resources,welcomed TotalEnergies’ return to gas exploration in Egypt, describing it as a positive outcome of the ministry’s strategy to create an attractive investment climate through reforms, incentives, and settling dues owed to partners. He stressed that these efforts have helped restore investor confidence and encourage international companies to scale up exploration, field development, and drilling activities. He added that the MoU establishes a framework for technical cooperation, including preliminary exploration studies and subsurface evaluations, which will help de-risk future investments and pave the way for potential drilling activities.

The MoU was signed by the Executive Managing Director of EGAS, Sayed Selim and the Managing Director of TotalEnergies Egypt and Cyprus, Pascal Breant, in the presence of Prime Minister Mostafa Madbouly.

Madbouly highlighted ongoing efforts to provide incentives and facilitate operations for international partners. He noted that increasing investments in exploration is key to unlocking discoveries, boosting domestic production, and reducing energy imports.

The agreement builds on high-level discussions with TotalEnergies CEO Patrick Pouyanné during the Egypt Energy Show (EGYPES), and reflects the company’s renewed interest in expanding its upstream footprint in Egypt, particularly in the Western Mediterranean, according to Badawi. He further noted that the Mediterranean remains a top priority for Egypt’s exploration strategy, given its significant untapped potential, supported by the country’s well-established infrastructure and technical expertise, which positions it as a key regional hub for energy cooperation.

TotalEnergies has been active in Egypt since 1998, with operations spanning retail fuel distribution, lubricants, LNG, offshore exploration, and renewable energy projects. The company is currently expanding its role in natural gas exploration in the Mediterranean, while maintaining a strong retail presence with over 240 service stations nationwide.