EGAS, Harbour Energy Expand Gas Exploration in Egypt’s Nile Delta

The Egyptian Natural Gas Holding Company (EGAS) and Harbour Energy have signed an agreement to expand natural gas exploration in Egypt's onshore Desouq concession, as the country seeks to boost gas production and attract fresh investment into its energy sector.

The agreement adds two new blocks to the existing concession area and commits Harbour Energy to drilling two exploration wells and carrying out maintenance work on a producing well under the Desouq-1 development contract.

New investment targets gas reserves growth

Under the agreement, Harbour Energy will invest an initial $6 million and pay a $1 million signing bonus. Total investment could increase to about $18 million if new discoveries are made, with a further $12 million earmarked for development activities.

The expansion follows recent drilling successes in the Desouq area, where the company completed the Ezz-1 and Ezz-2 wells during the 2025/2026 fiscal year, adding estimated reserves of around 35 billion cubic feet of gas.

Harbour Energy also plans to drill three additional exploration wells during the 2026/2027 fiscal year.

In a separate development, the Egyptian General Petroleum Corporation and Eni signed a memorandum of principles to renew the Port Fouad offshore development area in the Mediterranean Sea and its associated work programme.

The agreement is intended to support new investments, advance exploration activities and unlock undeveloped discoveries, while preserving existing infrastructure that supports current production and future growth opportunities.

The latest agreements form part of Egypt's broader strategy to deepen partnerships with international energy companies, attract investment and expand exploration activities to strengthen the country's natural gas output.