Chevron Joins Pivot to Egypt’s Mediterranean Shelf After Red Sea Exit

After concessions first awarded in 2019 failed to yield discoveries, Chevron and other upstream oil and gas majors have exited exploration concessions in the Red Sea to redirect their Egyptian investment portfolios to prospects of greater commercial value.

Chevron confirmed in April that it had relinquished its 45% operated stake in Red Sea Block 1, located in the northern Red Sea, with Reuters quoting company spokesman Sally Jones that 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.”

Chevron partners with Australia's Woodside Energy and Egypt’s Thawa in Block 1.

In March, the Middle East Economic Survey (MEES) reported that Shell was the first to exit the Red Sea together with its partners in Block 3 and Block 4, in which Shell holds 43% and 21% operator interests, respectively. But Shell has yet to formally confirm the report.

Shell’s partners in Block 3 include Australia’s Woodside (30%) and QatarEnergy (17%). Block 4 partners include UAE state-owned Mubadala (27%), Woodside (25%), and QatarEnergy (17%).