Foreign companies are expected to receive exploration rights to new gas blocks in Egypt’s North and Northeast regions by August 2025, according to an announcement by the state-owned Egyptian Natural Gas Holding Company (EGAS).
EGAS stated that these new concessions, along with additional blocks in offshore areas of the Eastern Mediterranean, are part of the country’s latest bidding round.
“Significant market demand was seen for the recently closed bidding round for strategic exploration blocks spanning the Mediterranean Sea, Gulf of Suez, and Western Desert,” EGAS said.
This current round features 12 onshore and offshore concessions and has attracted numerous bidders.
The blocks collectively span 26,500 square kilometres, with five of the concessions located offshore in the Mediterranean, covering approximately 13,000 square kilometres.
Two UAE-based firms, Ades International and Dragon Oil, are contesting for the North July offshore block.
Although this block falls under the jurisdiction of the Egyptian General Petroleum Corporation (EGPC), it is included in the broader upstream strategy.
“The bidding round aligns with Egypt’s trend to enhance hydrocarbon output and draw vital foreign investments… the evaluation and award results for the latest bidding round are expected in August,” the group added.
Growing gas shortage drives urgent exploration push
Once regarded as a regional energy exporter, Egypt is now grappling with a growing natural gas shortage that has triggered a strategic shift in its energy policy and international partnerships.
The country’s gas production, which once peaked at nearly 6 billion cubic feet per day (bcf/d) in early 2021, dropped to about 3.5 bcf/d by April 2025.
Last year, Egypt recorded the largest decline in global LNG exports, largely due to ageing fields like Zohr falling short of output expectations amid technical challenges.
In response, the Egyptian government began pursuing long-term LNG import contracts in May 2025, targeting supply security through 2030 to counterbalance declining domestic output.
Recent regional tensions have further exposed Egypt’s energy fragility.
The recent temporary shutdown of Israel’s Leviathan gas field amid military conflict with Iran disrupted both industrial activity and power generation across Egypt.
To ease near-term pressure, Egypt has started leasing floating storage and regasification units (FSRUs) at key terminals, allowing quicker LNG conversion to gas during peak demand.
Still, officials acknowledge that lasting energy security must be anchored in domestic production.
This recognition has driven Egypt’s intensified focus on upstream investment.
In addition to the anticipated August awards, EGAS has recently authorised exploration in six more oil and gas blocks by global majors such as Shell, Eni, and Chevron.
