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ExxonMobil signs MoU for Mediterranean gas exploration expansion

Businessmen Team mining-energy 04 November 2025 03:19 PM
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ExxonMobil signs MoU for Mediterranean gas exploration expansion

Minister of Petroleum and Mineral Resources, Engineer Karim Badawi, and ExxonMobil Global Exploration Vice President, Dr. John Ardill, oversaw the signing of a Memorandum of Understanding (MoU) between the Egyptian Natural Gas Holding Company (EGAS) and ExxonMobil Global to expand natural gas exploration and research activities in the Mediterranean Sea off Egypt.

The signing took place on the sidelines of the 2025 ADIPEC conference in Abu Dhabi, the capital of the United Arab Emirates.

Under the MoU, ExxonMobil intends to invest in a new concession area west of the Zohr field near the border with Cyprus. This move will enhance the company's investments in the East Mediterranean and increase its offshore operational areas in Egypt to four, reflecting the company's confidence in the attractive investment environment of the oil and gas sector and the significant opportunities in the region.

This expansion aligns with the first pillar of the Egyptian Ministry of Petroleum's strategy, which aims to boost production rates, intensify drilling and exploration, and attract more foreign investment in the sector. The announcement underscores the major global company's commitment to reinforcing its investments in Egypt's oil and gas sector. It also enables the strengthening of Egypt's infrastructure to connect any future discoveries within a unified system, enhancing the country's capabilities as a regional hub for gas trading and transport in the East Mediterranean.

Following the signing, the Minister and the ExxonMobil Vice President held a discussion session reviewing the company's plans in Egypt. ExxonMobil will drill new exploratory gas wells in the Masry and Cairo areas of the Mediterranean. They stressed the importance of the incentivizing step to accelerate exploration operations following progress in legislative procedures to implement a new, attractive investment system: the Profitability Coefficient system, which is compatible with virgin and new areas to encourage investment.

They also reviewed the status of the North Marakia Offshore concession area, which saw the "Nefertari-1" discovery. The officials emphasized the importance of speeding up the development of this discovery and bringing it onto the production map as soon as possible.