Arab Finance: Egypt signed a memorandum of understanding (MoU) with TotalEnergies to expand natural gas exploration activities in the Western Mediterranean region, according to a statement.

Prime Minister Mostafa Madbouly affirmed the government's support for efforts to attract more investment in the exploration and production fields. He also outlined the incentives offered to international partners to scale investment for new discoveries and developing existing fields, thereby boosting local production and reducing the energy import bill.

Madbouly recalled his meeting with the company’s CEO Patrick Pouyanné at EGYPES 2026, as he emphasized commitment to creating an attractive investment environment in the sector.  

For his part, Minister of Petroleum and Mineral Resources Karim Badawi noted that the MoU establishes a framework for technical cooperation between the two parties, including preliminary exploration studies for natural gas and technical assessments of subsea conditions.

He welcomed TotalEnergies’ return to natural gas exploration in Egypt, asserting that this partnership represents a significant outcome of the ministry's efforts to create an attractive investment environment.

The minister elaborated that recent incentives, regulatory reforms, and the settlement of overdue payments to international oil companies (IOCs) encouraged them to expand exploration and development activities, including drilling new wells to support local market demand.

The Mediterranean region remains a top priority for the ministry’s gas exploration strategy due to its significant untapped potential, he added.  

Badawi recently held two meetings with executives from Shell and Petronas in Egypt to discuss intensifying exploration and development of natural gas production in the West Delta Deep Marine (WDDM) concession of the Mediterranean.