Chevron to invest big in EastMed gas block: US energy giant Chevron will invest USD 3 bn over two years starting in 1H 2024 to develop Egypt’s Nargis gas field in the East Mediterranean, writes Asharq Busi ness, citing a government official it says is familiar with the matter.

Remember: Chevron and Italian major Eni last year announced a “significant” gas discovery at the 1.8k square-km offshore block, without disclosing how the size of the discovery. An unconfirmed media report put the estimated volume at 3.5 tn cubic feet. The companies each own a 45% stake in the concession, while state-owned Tharwa Petroleum holds the remaining 10%.

This is the latest investment pledge by a key international oil and gas firm: Eni said earlier this month that it and its partners will invest USD 7.7 bn into its Egypt operations over the next four years. BP has committed to investing USD 3.5 bn over three years. The three companies were among the five multinationals that Oil MinisterTarek El Molla recently said will spend USD 1.8 bn by 2025 on fresh gas exploration.

More Nargises are needed: Domestic gas production has fallen to three-year lows this year on the back of production declines in the Nile Delta and disruptions at Zohr. This has contributed to electricity shortages and is complicating the country’s ambitions to increase LNG shipments to Europe. Egypt has been importing increased volumes of Israeli gas this year and hopes to raise this further in the coming years after Chevron expands the Tamar field.

ICYMI– There was talk last month that Emirates National Oil Company (ENOC) subsidiary Dragon Oil wanted to buy a stake of at least 20% of Nargis from Chevron.

Chevron is now a key player in East Mediterranean gas, holding operating interests in Israel’s two largest fields and taking the lead in the development of Cyprus’ gas assets. The US company is pushing a proposal to link the giant Aphrodite gas field to Egypt’s LNG terminals via a new pipeline, an idea that is yet to find favor with the Cypriot government, which wants to acquire a floating LNG plant of its own.

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