Egypt has signed two new agreements with European energy companies Harbour Energy and Eni aimed at accelerating natural gas exploration, developing new reserves and strengthening the country’s energy security as Cairo works to revive its gas sector.
The agreements come shortly after Egypt announced that it had cleared all outstanding financial arrears owed to foreign oil and gas companies, a move expected to improve investor confidence and encourage new investment in the country’s energy industry.
The Egyptian Natural Gas Holding Company (EGAS) signed an agreement with Britain’s Harbour Energy, while the Egyptian General Petroleum Corporation (EGPC) signed a memorandum of understanding with Italy’s Eni to renew the offshore Port Fouad development lease in the Mediterranean.
Egypt’s government said the deals support the Ministry of Petroleum and Mineral Resources’ strategy to attract international investment, expand exploration activities and increase domestic gas production.
The agreements are part of broader efforts by Cairo to reverse declining output from mature gas fields and identify new reserves capable of meeting rising domestic energy demand.
More Read
Petroleum Minister Karim Badawi said the projects would contribute to strengthening energy supply security while supporting higher levels of local production.
The Harbour Energy agreement focuses on expanding the company’s operations in the Dessouk concession area in Egypt’s onshore Nile Delta.
The project includes the addition of two new exploration blocks, the drilling of two exploration wells and maintenance work on an existing producing well.
Initial investment in the expansion is estimated at $6 million, along with a $1 million signing bonus. If new discoveries are made, total investment could rise to around $18 million through additional development spending.
The expansion builds on recent exploration successes by Harbour Energy. Egyptian authorities said the company’s Azz-1 and Azz-2 wells, drilled during the 2025–2026 fiscal year, added about 35 billion cubic feet of natural gas reserves.
Harbour Energy is also planning further exploration activity, with three additional wells scheduled for the 2026–2027 fiscal year.
The second agreement involves the renewal of the Port Fouad offshore development area operated by Italian energy major Eni in the Mediterranean.
The agreement is designed to maintain the attractiveness of the strategic offshore zone, preserve existing infrastructure and create conditions for further investment and future discoveries.
Egypt considers the Mediterranean region a key area for expanding gas production and strengthening its position as a regional energy hub.
Beyond the immediate exploration projects, the agreements carry significance for Egypt’s relationship with international energy investors.
The government recently announced that it had fully settled debts owed to foreign oil companies, which had previously been a major obstacle to attracting new investment.
According to Minister Badawi, Egypt’s outstanding obligations to international energy companies stood at $6.1 billion in June 2024 before falling to $1.3 billion by March 2026 before being completely cleared.
The settlement is expected to restore confidence among international companies that had expressed concerns over delayed payments and financial uncertainty.
Egypt has been seeking to strengthen its role in the Eastern Mediterranean gas market, where it competes with other regional producers while also trying to meet growing domestic consumption.
The country has invested heavily in expanding liquefied natural gas capacity and developing offshore resources, positioning itself as a potential regional hub for gas exports.
The new agreements with Harbour Energy and Eni signal Cairo’s renewed push to attract foreign capital, increase production and secure long-term energy supplies as global demand for natural gas continues to evolve.
