Oil giant Chevron is currently in talks with the Egyptian government to expand its operations in the West Star block in the Mediterranean waters, positioned south of ExxonMobil’s giant Cairo and Masry blocks in the deep offshore near the Cyprus border, a report shows.
The U.S. oil major has also submitted bids for two additional blocks offered in last year’s 12-block licensing round by the Egyptian Natural Gas Holding Company (EGAS). The results of those bids are expected in the coming months.
Although Egypt accounted for just 3% of Chevron’s global production in 2024, the company considers its growing footprint in the Eastern Mediterranean as a strategic move.
The region has gained increased significance for Chevron since its $5 billion acquisition of Noble Energy in 2020, which gave it a foothold in one of the world’s most promising natural gas basins.
CEO Mike Wirth expressed enthusiasm about the company’s Eastern Mediterranean portfolio during a recent earnings call.
“We are excited about our entire portfolio in the Eastern Mediterranean. We’ve got promising exploration acreage offshore Egypt, and we expect to drill exploration wells there in the next couple of years.”
Chevron’s interest in the West Star block follows the recent approval of a new exploration agreement by Egypt’s Ministry of Petroleum.
According to Bloomberg, the energy giant has committed to a minimum investment of $120 million in the initial exploration phase.
Meanwhile, Chevron has exited its Red Sea concessions due to unfruitful exploration results, ending the first phase of an exploration permit granted in 2019.
A spokesperson for Egypt’s Petroleum Ministry confirmed that companies, including Chevron, invested millions of dollars without commercial success, though he didn’t disclose the specific figures.
Chevron has since relinquished its 45% stake in Red Sea Block 1 and redirected its focus to the more promising Mediterranean basin.
The ongoing negotiations, which was first reported in January 2025, indicates Chevron’s long-term commitment to strengthening its upstream portfolio in the region.
Beyond Egypt, Chevron is also exploring new offshore opportunities in the Walvis Basin, located off the coast of Namibia, which further highlights its aggressive exploration strategy in Africa.
