Chevron and the Egyptian Natural Gas Holding Company (EGAS) have signed an agreement covering at least $88 million of investment in natural gas and crude oil exploration and production in the Lotus offshore area in the Mediterranean Sea.
The agreement includes the drilling of two exploration wells and reprocessing of 3D seismic data in the area, which lies about 200 km from Egypt's Mediterranean coast in water depths ranging from 2,000 to 2,800 meters.
Deep exploration wells have not previously been drilled in the Lotus area, with the agreement opening the acreage to exploration for potential natural gas and crude oil resources.
The deal was signed by EGAS Executive Managing Director Sayed Selim and Chevron Exploration Director for the Middle East, North Africa and the Mediterranean Andrew Deegan, in the presence of Egyptian Petroleum and Mineral Resources Minister Karim Badawi.
Chevron currently invests in six offshore exploration areas in Egypt's Mediterranean waters - Nargis, North Dabaa, Lotus, Northwest Atoll, North Simian and North Cleopatra, where it participates alongside Shell.
Its exploration activities have included the Nargis gas discovery, while drilling of the Velox well in the North Cleopatra offshore area more recently showed indications of crude oil.
The country plans further investment opportunities in the Mediterranean, Western Desert, Nile Delta, Gulf of Suez, Sinai and southern Egypt, alongside ongoing and planned seismic survey programs aimed at providing more detailed geological data for future exploration.
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