Egypt has signed a new oil exploration and production agreement with Cheiron Petroleum Corporation valued at more than USD 30 million, strengthening the country’s push to expand domestic crude output and reduce reliance on imports. The deal, which covers the East Gamsa offshore block in the Gulf of Suez, includes a USD 1 million signing bonus and commits the company to drilling four new wells, the Ministry of Petroleum confirmed.
The agreement was signed between Salah Abdel Kerim, CEO of the Egyptian General Petroleum Corporation (EGPC), and Alan Linn, CEO of Cheiron, in a ceremony witnessed by Minister of Petroleum and Mineral Resources Karim Badawy. According to the ministry, the contract reinforces the first pillar of Egypt’s national petroleum strategy, which focuses on intensifying upstream exploration to identify new reservoirs, maximise existing assets, and secure long-term energy supplies.
Badawy highlighted the broader geological potential of Egypt’s upstream landscape, noting that both the Western Desert and the Gulf of Suez remain among the country’s most promising regions for new discoveries. He said that Egypt plans to leverage advanced exploration technologies to enhance reservoir recovery and unlock new fields, in line with the ministry’s long-term development strategy.
Cheiron, one of Egypt’s most established partners in the Gulf of Suez basin, will begin implementing the work programme immediately, with the new wells expected to contribute to production in the near term.
