Western and Eastern Energy Majors Move Fast into Egypt’s Gas Renaissance
New oil rush in the Eastern Mediterranean: Egypt’s massive gas push draws in BP, Shell, Exxon and more
Egypt is taking center stage again in global energy markets as major Western and Eastern operators ramp up exploration. With the government poised to award new gas exploration concessions this August, covering 26,500 km² across the Mediterranean, Gulf of Suez and Western Desert, investors are watching closely how the next chapter in Egypt’s hydrocarbon resurgence takes shape.
International firms including BP, ExxonMobil, Shell, Chevron, Eni and QatarEnergy are preparing to drill at least 13 new wells as part of this concession round, which follows awards totaling $245 million announced in June to secure exploration in six promising blocks. BP, which already produces around 40% of Egypt’s domestic gas, continues expanding offshore in the West Nile Delta with its joint venture investment in North Alexandria and West Mediterranean concessions totaling nearly $9 billion.
Just off Cyprus, ExxonMobil and QatarEnergy confirmed a second major gas find—Pegasus‑1 in Block 10—enhancing prospects for export flows to Egypt, and potentially diverting supply toward European markets eager to reduce dependence on Russian gas. Meanwhile, Chevron is preparing a seabed survey this summer to pave the way for a pipeline linking the Aphrodite gas field (estimated at up to 4.5 trillion cubic feet) to Egyptian processing infrastructure via Idku or Damietta terminals in Egypt.
Egypt has faced a sharp decline in domestic production—from over 6 bcf/d in early 2021 to 3.5 bcf/d by April 2025—forcing it to resume LNG imports and rely on Israeli gas supply, especially during disruptions sparked by regional conflict. The current bidding round represents a critical pivot. Winning bids are expected next month, with companies committing up to $245 million plus additional drilling investment to tap reserves in both onshore and offshore blocks.
Egypt’s petroleum ministry aims to revive output while boosting investor confidence, having already committed $1.2 billion through 2024–25 to drill over 110 new wells nationwide—including in the Western Desert’s Abu Sennan region, where recent GPC discoveries produced 1,400 barrels of oil and 1 mmcf/d of gas. Together with foreign exploration partners, Egypt is reasserting itself as a rising star in the Eastern Mediterranean energy scene.