en.Wedoany.com Reported - Egyptian Natural Gas Holding Company (EGAS) has reached an agreement with Arcius Energy, based in New Cairo, to jointly develop the Harmattan gas field in the Mediterranean Sea, with an estimated investment of $500 million.
Arcius Energy was established in February 2024, with a 51% stake held by the British energy giant BP and a 49% stake held by XRG, the global investment arm of the UAE's Abu Dhabi National Oil Company, focusing on the Egyptian market. According to public information, BP holds a significant position in the global energy sector, and XRG also has extensive international investment experience. The strong partnership between the two provides solid support for the project's advancement.
According to a statement from the Ministry of Petroleum cited by the National Information Service, the project aims to achieve a daily production of nearly 150 million cubic feet of natural gas and 3,300 barrels of condensate, with subsequent plans to increase production to 200 million cubic feet of natural gas and 4,400 barrels of condensate per day. The project is expected to be completed in 2028.
Currently, Egypt is actively addressing its energy challenges. Last month, Egypt stated that it would repay $1.3 billion in debts owed to international oil companies by June 2026. Petroleum Minister Karim Badawi stated that increasing domestic oil and gas production and reducing import expenditures require the support of foreign investment. Due to supply disruptions caused by the war between the U.S., Israel, and Iran, oil and gas costs have surged, and Cairo has already raised fuel prices.
To boost energy production, Cairo has approved a plan, as part of a five-year investment program, to drill 100 new exploratory oil and gas wells by 2026. The Arab Energy Organization estimates that Egypt has recoverable crude oil reserves of 3.3 billion barrels and natural gas reserves of 2.1 trillion cubic meters.
The development of the Harmattan gas field by this UAE-UK joint venture is of significant importance for Egypt's energy industry development. From a corporate perspective, leveraging their respective technological and financial strengths, BP and XRG are expected to achieve considerable returns from this project and accumulate development experience in the Egyptian market. From an industry perspective, the project will enhance Egypt's natural gas production, impact the local energy supply landscape, and inject new vitality into the global energy market.
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