Arab Finance: The Egyptian Natural Gas Holding Company (EGAS) and Cheiron Energy signed a new agreement for natural gas exploration in the East Alexandria offshore area in the Mediterranean Sea, according to a statement.

With a minimum investment exceeding $42 million, the deal involves the drilling of three exploratory wells and reprocessing seismic data to assess the area's potential and unlock new opportunities for natural gas discoveries.

Minister of Petroleum and Mineral Resources Karim Badawi said the agreement represents a key step in accelerating the pace of upstream activities.

It provides investment partners with an opportunity to launch work programs in new areas, contributing to achieving new discoveries while boosting Egypt's oil and natural gas reserves, Badawi added.

The minister lauded Cheiron Energy’s contributions to exploration, development, and production activities in Egypt, highlighting its expanding operations across the Western Desert, the Mediterranean Sea, and the Gulf of Suez.

He also addressed the successful partnership between the petroleum sector and Cheiron through Badr El-Din Petroleum Company (Bapetco), noting the ongoing expansion of operational activities and work programs.

The minister further highlighted Cheiron's prompt response to the ministry's initiative to expand the use of horizontal drilling and hydraulic fracturing technologies in the Western Desert, as these efforts help increase production and maximize the utilization of available resources.

For his part, David Chi, CEO of Cheiron, affirmed that the new agreement supports the company's business portfolio in Egypt and reflects the development of the partnership with the petroleum sector in implementing exploration and production programs.