The Egyptian Natural Gas Holding Company (EGAS) and ExxonMobil Egypt signed a memorandum of understanding (MoU) in principle on Tuesday to lay the foundation for a new production sharing system aimed at boosting foreign investment in Egypt's oil and gas sector. The agreement supports the development of a revised petroleum agreements framework designed to enhance the competitiveness of Egypt's financial regime. The new model would replace the current concession system with a production sharing structure between the petroleum sector and international partners, offering a more attractive return on investment while supporting the expansion of exploration and development in high-risk frontier areas. The rollout of the new framework is pending approval from the relevant state authorities. Under the MoU, the system would initially be applied to the Cairo Offshore and Masry Offshore blocks in the Mediterranean Sea—areas awarded to ExxonMobil in November 2023. The company has already completed a 3D seismic survey covering around 11,000 square kilometres and is currently analysing the data ahead of launching exploratory drilling programmes. According to the Ministry of Petroleum and Mineral Resources, the new model would encourage serious exploration and enable profit-sharing with foreign partners in the event of major discoveries and higher-than-expected returns, aligning Egypt's government take with international norms. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
