Cheiron commits at least USD 42 mn to East Alexandria offshore gas search

Egypt’s Cheiron signed an agreement with state gas holding company Egas to explore for natural gas in the East Alexandria offshore area, committing a minimum investment of just over USD 42 mn to drill three exploration wells and reprocess seismic data in the Mediterranean concession, according to an Oil Ministry statement. The agreement finalizes the block Cheiron picked up in Egas’ global bid round in June 2025, when it was one of six companies that were handed new blocks.

Stepping up exploration while speeding up development of discovered fields is central to the ministry’s plan to raise domestic output, Oil Minister Karim Badawi says. The ministry is targeting an extra 1 bcf / d of production by the end of this year, as part of a push to reach 6.2 bcf / d by 2027, up from an average of roughly 3.8 bcf / d in 1H 2026.

The pressure to find more gas at home has grown as LNG import costs climb. Asian spot prices went up some 36% m-o-m to more than USD 34 per mmBtu by the end of October, and the government has responded by deepening its gas cuts to industry. Mopco, Abu Qir Fertilizers, and Kima have all confirmed cuts of up to 33% in bourse filings (here, pdf, here, pdf, and here, pdf). Steelmakers are feeling it too, with Suez Steel, Beshay, and Ezz Rolling Mills facing gas cuts of about 30%.