Oil Ministry pushes for September FID on 3.7 tcf Aphrodite gas field

Egypt’s energy sector is moving across the Mediterranean and beyond, pushing technical agreements for the pipeline transporting Cypriot gas to our LNG hubs, accelerating offshore exploration at home, and exporting drilling expertise to Turkey.

Securing the Cypriot corridor

Egypt and Chevron are looking to finalize the key agreements needed to move the Aphrodite gas field toward a final investment decision by September, according to a statement.

REFRESHER- Under an agreement inked earlier this year, Egypt will purchase the entirety of Aphrodite’s output via a USD 2 bn pipeline fully funded by Cyprus. The 15-year contract will see up to 700 mmcf / d arrive at Port Said before shifting to flexible volumes priced against Brent crude. Pipeline construction is slated for 2027, with gas arriving by 2030 to feed Egypt’s domestic grid and LNG facilities. We could also see gas from Cyprus’s Cronos field heading our way by 2028 under a similar receive-process-re-export model.

The agreement comes with hopes of re-exporting to Europe, feeding Egypt’s liquefaction infrastructure and paving the way to become the East Med’s processing hub. The supply will feed our local LNG export facilities while also providing fuel for domestic consumption, helping to reduce our large LNG import bill and decrease the risk of relying too heavily on a single pipeline corridor like the East Mediterranean Gas pipeline between Egypt and Israel.

Ramping up offshore exploration

Meanwhile, BP and Harbour Energy are teaming up to drill a USD 150 mn exploration well in the Mediterranean’s Ghourab field this September, with initial estimates suggesting the prospect could hold up to 975 bcf of recoverable natural gas, the Arabic press reports, citing unnamed government officials.

REMEMBER- The move comes shortly after the two British players inked a frameworkagreement to jointly develop the El Arish and North King Mariout concessions. The investments slot into BP's broader USD 1.5 bn commitment to Egypt’s gas exploration in FY 2026/27.

Exploring Egyptian expertise

The Egyptian Drilling Company (EDC) is taking its rigs to Turkey under a two-year, USD 43 mn contract, according to an Oil Ministry statement. The company — owned by the Egyptian General Petroleum Corporation — is deploying its EDC 42 and 52 rigs in partnership with the Turkish Petroleum Corporation.

IN CONTEXT- The state-owned drilling arm — which operates a fleet of 70 rigs — has been eyeing the Turkish market as part of its broader international expansion drive, alongside its established operations in Saudi Arabia and Kuwait. Other targeted markets include India, the UAE, Qatar, Oman, Algeria, West Africa, Brazil, and Thailand.