By: AGBI

The state-owned Egyptian Natural Gas Holding Company (EGAS) and New Cairo-based Arcius Energy have agreed to develop the Harmattan gas field in the Mediterranean, with estimated investments of $500 million.

Arcius Energy, launched in February 2024, is 51 percent owned by the UK’s energy giant BP and 49 percent by XRG, the global investment arm of the UAE’s Abu Dhabi National Oil Company, with a primary focus on Egypt.

The project aims to produce nearly 150 million cubic feet of gas and 3,300 barrels of condensate per day, the State Information Service reported, citing a petroleum ministry statement.

The companies plan to increase output to 200 million cubic feet of gas and 4,400 barrels of condensate per day. 

The project is scheduled for completion by 2028, the statement said.

Last month, Egypt said it would settle the $1.3 billion it owes to international oil companies by June 2026.

Karim Badawi, the petroleum minister, said foreign investment was needed to increase domestic oil and gas production, thereby reducing the import bill.

Cairo has increased fuel prices following the spike in the cost of oil and gas as a result of supply disruptions stemming from the US-Israel and Iran war.

Cairo has approved a plan to drill 100 new exploratory oil and gas wells during 2026 as part of a five-year investment plan.

The country’s extractable crude oil and gas deposits are estimated by the Arab Energy Organization at 3.3 billion barrels and 2.1 trillion cubic metres.