By Tom Pepper /EnergyIntel/ – Chevron has been awarded three new deepwater exploration blocks in the Mediterranean by Egypt, the US major told Energy Intelligence.
“Chevron confirms that its operating interest in three Mediterranean offshore blocks was accepted, in separate consortiums with [Egyptian] Tharwa Petroleum Co., in the North Sidi Barrani Offshore, North El-Dabaa Offshore and Nargis Offshore,” said Chevron spokesperson Ray Fohr.
Egypt’s gas-prone offshore has now attracted all of the top oil majors as they seek to boost their portfolios as the world transitions toward a low-carbon future (IOD Jul.20’20).
The new acreage is located in Egypt’s West Mediterranean area and is part of an explosion of interest among Western majors in exploring offshore Egypt after Eni’s 30 trillion cubic foot Zohr deepwater gas discovery in 2015.
North Sidi Barrani covers 5,121 square kilometers, North El-Dabaa 4,593 sq km, and Nargis Offshore 1,800 sq km. Chevron had previously acquired Sector No. 1 in Egypt’s first Red Sea bid licensing round in 2019.
“The block agreements are subject to the completion of necessary procedures and applicable approvals. The agreements further strengthen Chevron’s upstream portfolio in Egypt,” said Fohr.
In addition, Chevron’s planned acquisition of Noble Energy, announced earlier this month, has given it a 27% interest in two more Egyptian offshore blocks — Block 6 and Block 7, which are operated by Royal Dutch Shell with a 63% stake. Tharwa Petroleum holds the remaining 10% (IOD Jul.15’20).
Separately, French major Total also confirmed to Energy Intelligence this week its acquisition of an Egyptian offshore block in the same area (LNGI Jul.21’20). Total will operate Block 3 — Herodotus — with a 35% stake. Shell has 30% while Kufpec has 25% and Tharwa holds 10%.
Energy Intelligence first learned of the potential for new awards in February from a senior Egyptian petroleum ministry official.
Both Chevron and Total were chasing new acreage while US supermajor Exxon Mobil said in December that it had taken the North Marakia Offshore Block in the same area, located about five miles off Egypt’s northern coast in the Herodotus Basin and covering about 1.2 million acres (IOD Feb.12’20).
BP is believed to have taken an offshore block as well but has yet to confirm the acquisition. The latest news is a sign of confidence in Egypt’s upstream despite the plunge in oil prices triggered by the Covid-19 pandemic.
