By: Energy capital & power

The Egyptian Natural Gas Holding Company (EGAS) has entered a preliminary MOU with ExxonMobil Egypt Upstream to pave the way for a new operational framework in the Cairo and Masry offshore concession areas of the Mediterranean Sea.

The agreement forms part of the Ministry of Petroleum and Mineral Resources’ broader strategy to attract foreign investment, ramp up natural gas output and stimulate exploration in underexplored frontier areas. This approach includes the introduction of incentives specifically designed to mitigate the high risks associated with exploration in such regions.

To maintain Egypt’s competitiveness in the global energy sector, the Ministry is also working to modernize petroleum agreement structures, ensuring more attractive terms for investors. These updates are intended to offer fair returns for international partners, while encouraging continued investment in exploration and development.

According to the Ministry, ExxonMobil is expected to develop an integrated development plan if initial exploration yields promising results. The company has already completed a 3D seismic survey spanning 11,000km2 in the concession area, with data analysis currently underway as it prepares for potential drilling operations.