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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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EU Seeks Unity in First Strike Back at Trump Tariffs

FILE PHOTO: An EU flag flutters. Reuters
FILE PHOTO: An EU flag flutters. Reuters
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EU Seeks Unity in First Strike Back at Trump Tariffs

FILE PHOTO: An EU flag flutters. Reuters
FILE PHOTO: An EU flag flutters. Reuters

European Union countries will seek to present a united front in the coming days against US President Donald Trump's tariffs, likely approving a first set of targeted countermeasures on up to $28 billion of US imports from dental floss to diamonds.
Such a move would mean the EU joining China and Canada in imposing retaliatory tariffs on the United States in an early escalation of what some fear will become a global trade war, making goods more expensive for billions of consumers and pushing economies around the world into recession, Reuters said.
The 27-nation bloc faces 25% import tariffs on steel and aluminium and cars and "reciprocal" tariffs of 20% from Wednesday for almost all other goods.
Trump's tariffs cover some 70% of the EU's exports to the United States - worth in total 532 billion euros ($585 billion) last year - with likely duties on copper, pharmaceuticals, semiconductors and timber still to come.
The European Commission, which coordinates EU trade policy, will propose to members late on Monday a list of US products to hit with extra duties in response to Trump's steel and aluminium tariffs rather than the broader reciprocal levies.
It is set to include US meat, cereals, wine, wood and clothing as well as chewing gum, dental floss, vacuum cleaners and toilet paper.
One product that has received more attention and exposed discord in the bloc is bourbon. The Commission has earmarked a 50% tariff, prompting Trump to threaten a 200% counter-tariff on EU alcoholic drinks if the bloc goes ahead.
Wine exporters France and Italy have both expressed concern. The EU, whose economy is heavily reliant on free trade, is keen to make sure it has wide backing for any response so as to keep the pressure up on Trump ultimately to enter negotiations.
Luxembourg will earlier on Monday host the first EU-wide political meeting since Trump's announcement of the sweeping tariffs when ministers responsible for trade from the 27 EU members will exchange views on the impact and how best to respond.
EU diplomats said the main aim of the meeting was to emerge with a united message of a desire to negotiate with Washington a removal of tariffs, but a readiness to respond with countermeasures if that failed.
"Our biggest fear after Brexit was bilateral deals and a break of unity, but through three or four years of negotiations that did not happen. Of course, here you have a different story, but everyone can see an interest in a common commercial policy," one EU diplomat said.
COUNTER-TARIFFS
Among EU members, there is a spectrum of opinion on how to respond. France has said the EU should work on a package going well beyond tariffs and French President Emmanuel Macron has suggested European companies should suspend investments in the United States until "things are clarified".
Ireland, almost a third of whose exports go to the United States, has called for a "considered and measured" response, while Italy, the EU's third largest exporter to the US, has questioned whether the EU should hit back at all.
"It's a difficult balance. Measures cannot be too soft to bring the United States to the table, but not too tough to lead to escalation," one EU diplomat said.
Talks with Washington to date have not borne fruit. EU trade chief Maros Sefcovic described his two-hour exchange with US counterparts on Friday as "frank" as he told them US tariffs were "damaging, unjustified".
The initial EU counter-tariffs will in any case be put to a vote on Wednesday and will be approved except in the unlikely event that a qualified majority of 15 EU members representing 65% of the EU's population oppose it.
They would enter force in two stages, a smaller part on April 15 and the rest a month later.
Commission President Ursula von der Leyen will also hold separate discussions on Monday and Tuesday with chief executives from the steel, automotive and pharmaceutical sectors to assess the impact of tariffs and determine what to do next.