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Yahoo
21-04-2025
- Business
- Yahoo
Chevron and other oil firms exit Red Sea concessions, redirect efforts
Chevron, alongside other multinational oil and gas companies, has exited its Red Sea oil and gas concession blocks in Egypt after failing to make any discoveries. The Egyptian petroleum ministry confirmed that these companies are now redirecting their resources to other regions within the country, particularly the Mediterranean, reported Reuters. Egypt awarded its first oil and gas exploration concessions in the Red Sea to Chevron, Shell, and Mubadala Investment Company in 2019. Moataz Atef, spokesperson for the ministry said: "Companies have spent millions on their concessions within the agreed time frames.' He noted that one unnamed company invested $34m, exceeding its initial commitment of $10m, but did not achieve the desired results. Chevron has confirmed relinquishing its 45% stake in Red Sea Block 1 in the northern part of the Red Sea. The company operates the block with partners including Woodside Energy, while Shell operates Block 3 with Woodside Energy and QatarEnergy. Chevron spokesperson Sally Jones said: "Chevron remains committed to working with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programmes in the Mediterranean.' The ministry did not disclose the names of other companies that have exited the Red Sea blocks. Shell declined to comment, and Mubadala, Woodside Energy, and QatarEnergy were not immediately available for comment, the report said. Despite these exits, the ministry remains optimistic about the potential of the concession areas. Both Shell and Chevron have applied for new concessions in the Mediterranean Sea, reaffirming their commitment to Egypt's oil and gas sector. Chevron has expressed interest in three other exploration blocks in Egypt, including two as an operator in the Mediterranean. Egypt's gas production was 4.6 billion cubic metres (bcm) in January 2024 but declined to 3.6bcm by January 2025, according to data from the Joint Organisations Data Initiative. Atef assured that Egypt would meet rising electricity demand this summer, with plans for three to four floating storage and regasification units to stabilise natural gas supply. He added that LNG shipments were secured, and an emergency plan was developed to tackle unexpected demand increases. Last summer, Egypt faced power shortages due to high cooling demand, leading to load-shedding and imports costing around $1.18bn. The Egyptian Natural Gas Holding Company (EGAS) intends to execute seven gas development initiatives and introduce 24 new wells into the production landscape in the fiscal year 2025/26. "Chevron and other oil firms exit Red Sea concessions, redirect efforts" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
18-04-2025
- Business
- Zawya
Chevron and other companies exit Egypt's Red Sea concessions, redirect resources
A number of multinational oil and gas companies including Chevron have exited their Red Sea oil and gas concession blocks after making no finds and have channelled their resources elsewhere in the country, the Egyptian petroleum ministry said. As part of its efforts to become an energy hub, Egypt awarded oil and gas exploration concessions in the Red Sea for the first time to Chevron, Shell and Abu Dhabi sovereign wealth fund Mubadala Investment Company in an international tender in 2019. "Companies have spent millions on their concessions within the agreed time frames," ministry spokesperson Moataz Atef told reporters on Thursday. He said: "One company spent $34 million on a contract that initially stipulated it will invest $10 million on exploration, but found no results," without naming said company. Chevron confirmed it has relinquished its operated 45% stake in Red Sea Block 1, located in the northern Red Sea. 'Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,' spokesperson Sally Jones said in a statement on Friday. Chevron operates the block along with other shareholders including Australia's Woodside Energy. Shell operates Block 3 with others including Woodside Energy and QatarEnergy. Atef did not name the other companies that he said had relinquished their Red Sea blocks. Shell declined to comment. Mubadala, Woodside Energy and QatarEnergy were not immediately available for comment. The petroleum ministry spokesperson stressed his ministry still believed the concession areas could be fruitful. He said both Shell and Chevron had applied for new concessions in the Mediterranean Sea, reaffirming their commitment to Egypt's oil and gas sector, without giving further details. Chevron spokesperson Jones said it had interest in three other exploration blocks in Egypt, including two as an operator in the Mediterranean. In January 2024, Egypt's gas production was 4.6 billion cubic meters of gas. Despite pushing for further increases, production remained on a downward trend, recording 3.6 billion cubic meters in January 2025, data from the Joint Organisations Data Initiative show. Regarding energy supply, Atef sought to give assurances that Egypt would be able to meet rising electricity demand this summer. "By the summer, we will have three to four floating storage and regasification units to help stabilize the supply of natural gas," he said, adding that LNG shipments have been secured, while an emergency plan is in place to address any unexpected demand spikes. Last summer, Egypt faced power shortages exacerbated by high cooling demand. The country resorted to load-shedding and imports costing around $1.18 billion. (Reporting by Mohamed Ezz and Jaidaa Taha; Editing by Alison Williams)
Reuters
18-04-2025
- Business
- Reuters
Chevron and other companies exit Egypt's Red Sea concessions, redirect resources
CAIRO, April 18 (Reuters) - A number of multinational oil and gas companies including Chevron have exited their Red Sea oil and gas concession blocks after making no finds and have channelled their resources elsewhere in the country, the Egyptian petroleum ministry said. As part of its efforts to become an energy hub, Egypt awarded oil and gas exploration concessions in the Red Sea for the first time to Chevron, Shell and Abu Dhabi sovereign wealth fund Mubadala Investment Company in an international tender in 2019. "Companies have spent millions on their concessions within the agreed time frames," ministry spokesperson Moataz Atef told reporters on Thursday. He said: "One company spent $34 million on a contract that initially stipulated it will invest $10 million on exploration, but found no results," without naming said company. Chevron confirmed it has relinquished its operated 45% stake in Red Sea Block 1, located in the northern Red Sea. 'Chevron remains committed to working together with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programs in the Mediterranean,' spokesperson Sally Jones said in a statement on Friday. Chevron operates the block along with other shareholders including Australia's Woodside Energy. Shell operates Block 3 with others including Woodside Energy and QatarEnergy. Atef did not name the other companies that he said had relinquished their Red Sea blocks. Shell declined to comment. Mubadala, Woodside Energy and QatarEnergy were not immediately available for comment. The petroleum ministry spokesperson stressed his ministry still believed the concession areas could be fruitful. He said both Shell and Chevron had applied for new concessions in the Mediterranean Sea, reaffirming their commitment to Egypt's oil and gas sector, without giving further details. Chevron spokesperson Jones said it had interest in three other exploration blocks in Egypt, including two as an operator in the Mediterranean. In January 2024, Egypt's gas production was 4.6 billion cubic meters of gas. Despite pushing for further increases, production remained on a downward trend, recording 3.6 billion cubic meters in January 2025, data from the Joint Organisations Data Initiative show. Regarding energy supply, Atef sought to give assurances that Egypt would be able to meet rising electricity demand this summer. "By the summer, we will have three to four floating storage and regasification units to help stabilize the supply of natural gas," he said, adding that LNG shipments have been secured, while an emergency plan is in place to address any unexpected demand spikes. Last summer, Egypt faced power shortages exacerbated by high cooling demand. The country resorted to load-shedding and imports costing around $1.18 billion.
Yahoo
07-02-2025
- Business
- Yahoo
Egypt awards $3bn LNG orders to Shell and TotalEnergies
Egypt has inked $3bn-worth of agreements with energy companies Shell and TotalEnergies to procure 60 cargoes of liquefied natural gas (LNG) this year, reported Reuters, citing three trading sources. This move is aimed at satisfying the nation's gas requirements amidst a backdrop of declining domestic production and a return to net importer status. Egypt's domestic supplies reached a seven-year low last September. The drop in production was primarily due to decreased output from the Zohr gas field and increased power consumption, as reported by the Joint Organisations Data Initiative. Shell has opted not to comment on the deals, while TotalEnergies and Egypt's petroleum ministry have not yet responded to requests for comment. In November 2024, Reuters reported that Egypt was negotiating with the US and other foreign companies to secure long-term LNG volumes to reduce its dependence on the spot market. To meet summer demand for air-conditioning, Egypt purchased several LNG cargoes on the spot market, paying a premium of $1–2. With LNG spot prices in 2025 averaging more than $14 per million British thermal units (MBtu), up from $12/MBtu when Cairo began tendering, the financial strain on Egypt is increasing, especially in light of its foreign currency shortage. In January, Egypt issued a tender for four LNG cargoes to be delivered between February and March, with the possibility of another spot tender later this year, depending on demand, market conditions and prices. Data from consultancy Energy Aspects predicts a 22.5% decline in domestic gas output by the end of 2028. At the same time, analysts forecast a 39% increase in the country's power consumption over the next decade. "Egypt awards $3bn LNG orders to Shell and TotalEnergies" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
