ExxonMobil has signed a fresh memorandum of understanding (MoU) with Egypt’s state-owned gas company EGAS to expand its natural gas exploration activities in the Mediterranean Sea, further deepening its footprint in the region.
The agreement, announced on the sidelines of the ADIPEC 2025 energy conference in Abu Dhabi, was signed in the presence of Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi and ExxonMobil’s Vice President of Global Exploration, John Ardill.
Under the deal, ExxonMobil will invest in a new offshore concession area west of the Zohr field, near Cypriot waters.
The addition brings the company’s total number of operating areas in Egypt to four, reflecting its confidence in the country’s petroleum sector and the untapped potential of the Eastern Mediterranean.
The MoU aligns with Egypt’s national petroleum strategy, aiming to bolster gas infrastructure and connectivity.
For months now Egypt has been battling to boost domestic gas supplies, despite recent progress at Zohr.
This has prompted the government to regulate exports to ensure there is ample volume to meet growing domestic demands.
As of mid-2025, Egypt only produced about 4.2 bcf/d of gas, way lower than the estimated 6.2 bcf/d required to meet local consumption.
Several measures have been explored by the government to help bridge this gap in the past months.
However, officials say this ExxonMobil deal will help return Egypt to its role as a regional hub for gas trade and transportation.
Following the signing, Minister Badawi and Ardill held talks on ExxonMobil’s upcoming exploration plans, which include drilling new wells in the Masry and Cairo offshore blocks.
The discussions also touched on Egypt’s newly introduced profitability factor system, designed to attract investment in frontier regions.
Progress on the North Marakia concession—home to the Nefertari-1 gas discovery—was also reviewed, with both parties stressing the need to fast-track development and early production.
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