Cheiron has signed an agreement with the Egyptian General Petroleum Corporation (EGPC) to explore and produce oil in the East Gemsa offshore area. The deal includes drilling four new wells and involves investments of over US$30 million, along with a US$1 million signature bonus.
Karim Badawi, Minister of Petroleum and Mineral Resources; Ihab Regaei, First Undersecretary of the MoPMR for Production; and Samir Raslan, Undersecretary of the MoPMR for Agreements and Exploration, attended the signing. Badawi described the agreement as a successful partnership model with the Egyptian private sector that encourages more investment in oil exploration and production.
He also highlighted that both the Western Desert and the Gulf of Suez offer strong opportunities for crude oil development. In September, EGPC signed three agreements with international companies to explore oil and gas in the Western Desert, Gulf of Suez, and North Sinai, with total investments exceeding US$121 million.
Cheiron, founded in the late 1980s and formerly known as PICO International Petroleum and later the PICO Cheiron Group, has grown into Egypt’s largest independent exploration and production company. It holds assets in the Western and Eastern Deserts, the Nile Delta, and the Gulf of Suez. In November, Cheiron connected the first wells of the West El-Burullus (WEB) gas field to the national grid, producing an estimated 45 million cubic feet per day. The company expects the field’s output to reach 75 million cubic feet per day in 2026.
source: africanminingmarket.com
African Energy Council