Egypt’s EGPC and EGAS have signed a new exploration agreement with energy giants Eni (via its International Egyptian Oil Company, IEOC) and BP to launch drilling in the Temsah concession area, located in the Mediterranean coastal basin, the petroleum ministry and Reuters confirmed.
The deal includes an exploratory well slated for drilling in the coming months within the Temsah block—an area straddling the fault line from the Mediterranean through Lake Timsah to the Gulf of Suez. The move forms part of Egypt’s wider plan to unlock new offshore reserves and reinforce its role as a regional gas hub.
Petroleum Minister Kareem Badawi framed the agreement as pivotal to the first pillar of Egypt’s energy strategy—boosting domestic oil and gas output. “By leveraging Eni and BP’s technical expertise, we aim to unleash new gas potential and increase Egypt’s energy self-sufficiency,” he stated.
Eni has long-standing involvement in Egypt, especially in key assets like the Zohr field and the Damietta LNG plant, contributing to both output growth and decarbonization efforts. Meanwhile, BP—active in Egypt for over six decades—brings deep experience in natural gas exploration, development, and production.
Dr. Yasmine Galal, energy economist at the Cairo Energy Forum, notes: “This collaboration not only bolsters confidence in Egypt’s offshore potential but also reflects a bold pivot toward energy diversification—critical amid plateauing output from older fields.”
This latest deal follows EGAS’ mid-2025 awards of six new exploration blocks—four offshore and two onshore—to companies including Chevron, Shell’s BG consortium, IEOC (Eni), and Cheiron Egypt. The initiative, facilitated through the Egypt Upstream Gateway (EUG), entails a projected investment of approximately $245 million and the drilling of at least 13 wells.
The emphasis on the Temsah concession reflects Egypt’s strategic focus on the Eastern Mediterranean basin, where the massive Zohr field, discovered in 2015, remains a cornerstone of its gas output. Recent efforts also include deploying Saipem’s Saipem 10000 rig to revive gas output at Zohr as part of broader boosting initiatives.
Sources within the Egyptian energy sector indicate that drilling at Temsah could begin as early as Q4 2025, pending weather window and rig availability. If the well is successful, follow-up activity—potentially tied into Egypt’s LNG processing infrastructure at Damietta or Idku—could accelerate.
According to insiders, work is underway to integrate any new gas flow into Egypt’s national grid and commercial export funnels. Egypt may also look to replicate the model in adjacent basins such as North Damietta and Baltim.
