EGAS, the state gas company of Egypt, has entered into a memorandum of understanding (MoU) with energy giant bp to drill five new gas wells in the Mediterranean Sea.

The deal was signed in the presence of Egyptian Petroleum Minister Karim Badawy at bp's London headquarters.

Badawy said: “The agreement with bp reflects the strength of a partnership spanning more than six decades.”

The drilling campaign will explore opportunities at water depths ranging from 300m to 1,500m and focus on expediting the establishment of reserves by utilising existing facilities.

Drilling is expected to commence in 2026, with the potential to tie-in any discoveries with the current infrastructure in the West Nile Delta.

The MoU signing ceremony was attended by bp chief executive Murray Auchincloss, Gas and Low-Carbon Energy EVP William Lin, and Middle East and North Africa regional president Nader Zaki.

Zaki added: “This memorandum represents a strategic step in our investments in Egypt’s energy sector during this decade, enabling us to develop additional gas resources in the West Nile Delta and bring them onstream as quickly as possible to meet the needs of the local market.”

This collaboration follows recent successful discoveries by bp at the Fayoum-5 and King-2 wells in the West Nile Delta.

Earlier in February, EGAS announced its intention to implement seven gas development projects and introduce 24 new wells into its production framework in fiscal years 2025 and 2026.

This plan is in line with the ministry's strategy to optimise the utilisation of Egypt's petroleum resources.