Arab Finance: Egyptian Natural Gas Holding Company (EGAS) and London-listed independent oil and gas company Harbour Energy have inked an agreement to expand exploration activities in the onshore Desouq concession in the Nile Delta, the Egyptian ministry stated.

The agreement adds two new blocks to the existing concession area, with Harbour Energy committing to drill two exploration wells and conduct maintenance work on a producing well under the Desouq-1 development contract. The company will invest an initial $6 million and pay a $1 million signing bonus.

Total investments could rise to around $18 million if new discoveries are made, with an additional $12 million earmarked for their development, supporting future natural gas production from the area.

The expansion follows Harbour Energy's recent drilling results in the Desouq area, where the company completed the Ezz-1 and Ezz-2 wells during the current fiscal year (FY) 2025/2026, adding estimated reserves of around 35 billion cubic feet of gas. The company plans to drill three additional exploration wells during the upcoming FY 2026/2027.

In a separate development, the Egyptian General Petroleum Corporation (EGPC) and Italian energy company Eni signed a memorandum of principles (MoP) to renew the Port Fouad offshore development area in the Mediterranean Sea and its associated work program.

The MoP is intended to establish a framework that supports new investments, exploration opportunities, and the development of untapped discoveries, while preserving existing infrastructure that underpins current production and supports future growth in nearby areas.

The agreements form part of the ministry's efforts to attract investment, deepen partnerships with international energy companies, and expand exploration and development activities to support growth in Egypt's natural gas production.