Chevron, Others Exit Egypt’s Red Sea Concessions After Making No Finds

A number of multinational oil and gas companies including Chevron have exited their Red Sea oil and gas concession blocks after making no finds and have channeled their resources elsewhere in the country, the Egyptian petroleum ministry said.

As part of its efforts to become an energy hub, Egypt awarded oil and gas exploration concessions in the Red Sea for the first time to Chevron, Shell and Abu Dhabi sovereign wealth fund Mubadala Investment Company in an international tender in 2019.

"Companies have spent millions on their concessions within the agreed time frames," ministry spokesperson Moataz Atef told reporters on Thursday.

He said: "One company spent $34 million on a contract that initially stipulated it will invest $10 million on exploration, but found no results," without naming said company.

Chevron confirmed it has relinquished its operated 45% stake in Red Sea Block 1, located in the northern Red Sea.

“Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,” spokesperson Sally Jones said in a statement on Friday.