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Egypt: US Chevron to Drill First Exploration Well in Eastern Mediterranean

Egypt’s state-owned gas company and Chevron Corp sign a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export. (Asharq Al-Awsat)
Egypt’s state-owned gas company and Chevron Corp sign a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export. (Asharq Al-Awsat)
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Egypt: US Chevron to Drill First Exploration Well in Eastern Mediterranean

Egypt’s state-owned gas company and Chevron Corp sign a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export. (Asharq Al-Awsat)
Egypt’s state-owned gas company and Chevron Corp sign a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export. (Asharq Al-Awsat)

Egypt’s state-owned gas company and United States-based Chevron Corp signed on Monday a preliminary agreement to explore sending natural gas from offshore Mediterranean fields to Egypt for processing and export, the petroleum ministry stated on Monday.

The memorandum of understanding signed by Egyptian Natural Gas Holding Company (EGAS) and Chevron will consider transport, import, liquefaction and export of natural gas from the eastern Mediterranean, the ministry explained.

It added that Chevron plans to drill its first exploration well in a concession area in the eastern Mediterranean in September.

They agreed to form a negotiation committee through which both parties can reach agreements on future natural gas projects in the East Mediterranean.

Under the MoU, the two companies will assess opportunities for transmission of natural gas in the East Mediterranean to Egypt to maximize its value by liquefaction before re-exporting and selling thereof.

The two companies will also conduct studies on low-carbon natural gas.

Petroleum Minister Tarek El Molla held talks with Chairman and CEO of Chevron Corporation Michael Wirth and his accompanying delegation.

Discussions touched on bilateral cooperation and Chevron’s activities in the field of research and exploration.

Molla said Egypt boasts strong infrastructure that can be linked to the gas producing fields in the region, in addition to its good relations with partners in the eastern Mediterranean.

Wirth, for his part, revealed that his company has plans to drill the first exploratory well in its concession area in East Mediterranean next September, adding that seismic studies are good.

He revealed that seismic works in Chevron’s concession in the Red Sea have seen progress and the hydrocarbon potential in the region is great.

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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili

The United States and Saudi Arabia will sign a preliminary agreement on energy cooperation and civilian nuclear technology, US Energy Secretary Chris Wright said on Sunday.

Wright spoke at a press conference in the Saudi capital Riyadh where he arrived from the United Arab Emirates on Saturday as part of a regional tour that will also take him to Qatar.

His visit comes amid world economic turmoil over the tariffs imposed by US President Donald Trump. But Wright said that these tariffs don’t seek to restrict trade, rather they aim for fair and reciprocal trade.

His visit also comes ahead of an expected visit by Trump to the Kingdom, the UAE and Qatar in May to consolidate relations.

The US Energy Secretary told journalists at the Saudi Energy Ministry that Riyadh and Washington were on a "pathway" to reaching an agreement to work together to better develop energy resources and energy infrastructure, in addition to mining cooperation, civilian nuclear technology and energy production.

Wright said further details over a memorandum detailing the energy cooperation between Riyadh and Washington would come later this year.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced last September that the Kingdom is working to develop peaceful uses for nuclear energy across various fields.

In his press conference on Sunday, Wright discussed the meetings he has held in Riyadh. There have “been very wide ranging dialogues for a day and a half now and they're going to continue. We've talked about energy in all aspects of energy. We've talked about mining, critical materials. We've talked about processing in industry. We've talked about climate change. We've talked about human lives and what drives their improvement and how best to achieve those ends,” he said.

On Saturday, Prince Abdulaziz met with Wright at King Abdullah Petroleum Studies and Research Center (KAPSARC) where the US official was briefed on the Center's role in the fields of energy policy research and its transitions, climate change, sustainable transportation, and consultancy services, in addition to the development of models and analytical tools that contribute to finding solutions to current challenges in the energy sector. They also discussed opportunities for cooperation in energy research, exchange of expertise, and strengthening joint research efforts.

Wright said Sunday that he believed “Saudi Arabia will be one of the leading countries in investing in the United States. I think that's a win for the Kingdom here. It's a win for the United States. And for us, most importantly, it's a win for the working class and American citizens to have better job opportunities.”

He added that the “broader objectives” of the US and Saudi Arabia “are prosperity at home and peace abroad.”

Wright also said in response to a question by Asharq Al-Awsat that tariffs are part of Trump's economic agenda.

He said Trump is trying to grow the flow of goods outside the United States into other countries while sustaining imports and engagement with countries from around the world. “So that's a way you could describe this. Fair trade, not restricted trade, just fair trade, reciprocal trade.”

He added that the United States has seen a lot of its intensive industries, particularly energy, move outside of the country and be outsourced somewhere else. “Too many Americans have seen their job opportunities shift overseas.”

“So tariffs are also a way to give a nudge and encourage investment into our country, to make products in our country, to grow economic opportunity and prosperity in America.”