EGAS Signs MoU with ExxonMobil

As part of the first pillar of the Ministry of Petroleum and Mineral Resources’ strategy to attract investments, increase natural gas production, and create incentives for promising frontier, the Egyptian Natural Gas Holding Company (EGAS) has signed a preliminary Memorandum of Understanding (MoU) with ExxonMobil Egypt Upstream Ltd. to lay the foundation for a new system in the Cairo and Masry offshore concession areas in the Mediterranean.

This is expected to be achieved through incentives that promote investment in high-risk frontier areas, given the challenges faced by companies operating in such zones. The Ministry has agreed to modernize the framework of petroleum agreements to enhance competitiveness in Egypt, which ensures partners receive fair economic returns and remain motivated to expand exploration and development activities in these untapped areas, pending approvals from relevant governmental authorities.

The MoU will encourage ExxonMobil to develop an integrated development plan if exploratory drilling activates lead to positive results, particularly as the company has completed a 3D seismic survey covering 11,000 square kilometers, with data analysis currently underway ahead of drilling operations, the ministry stated on Tuesday.