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.