The Energy and Environment Committee of Egypt’s House of Representatives, chaired by Tarek El Molla, has approved a government-drafted law authorising the Petroleum Ministry to conclude an exploration and production agreement between the Egyptian Natural Gas Holding Company and Cheiron for the East Alexandria Offshore block in the Mediterranean.

Under the proposed production sharing agreement, EGAS will receive a non-refundable signature bonus of $1 million, while the contractor commits to a minimum investment of $42.2 million, including drilling three exploration wells and reprocessing seismic data to support new gas and crude discoveries. The deal sets a 40 percent cost recovery ceiling, with EGAS’s share of profit oil and gas ranging between 64 and 70 percent depending on production levels and Brent crude prices.

The East Alexandria block was offered through an international bid round launched by EGAS, with Cheiron’s winning bid approved by EGAS’s technical committees after being judged to offer strong economic value. The agreement has cleared required legal and regulatory approvals, including from the Armed Forces Operations Authority and EGAS’s board, and will now proceed through remaining legislative steps before taking effect.

The approval follows an earlier Egyptian Cabinet decision in July 2026 to approve four separate petroleum agreements with international companies worth a combined $52.97 million in minimum investment and at least six exploration wells, part of the government’s broader push to expand exploration and attract fresh investment into its upstream sector.

Source: (egyptoil-gas.com)