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Chevron, alongside other multinational oil and gas companies, has exited its Red Sea oil and gas concession blocks in Egypt after failing to make any discoveries.
The Egyptian petroleum ministry confirmed that these companies are now redirecting their resources to other regions within the country, particularly the Mediterranean, reported Reuters.
Egypt awarded its first oil and gas exploration concessions in the Red Sea to Chevron, Shell, and Mubadala Investment Company in 2019.
Moataz Atef, spokesperson for the ministry said: "Companies have spent millions on their concessions within the agreed time frames.”
He noted that one unnamed company invested $34m, exceeding its initial commitment of $10m, but did not achieve the desired results.
Chevron has confirmed relinquishing its 45% stake in Red Sea Block 1 in the northern part of the Red Sea.
The company operates the block with partners including Woodside Energy, while Shell operates Block 3 with Woodside Energy and QatarEnergy.
Chevron spokesperson Sally Jones said: "Chevron remains committed to working with the government of Egypt and our partners to support the growth of Egypt's energy sector through our exploration programmes in the Mediterranean.”
The ministry did not disclose the names of other companies that have exited the Red Sea blocks.
Shell declined to comment, and Mubadala, Woodside Energy, and QatarEnergy were not immediately available for comment, the report said.
Despite these exits, the ministry remains optimistic about the potential of the concession areas.
Both Shell and Chevron have applied for new concessions in the Mediterranean Sea, reaffirming their commitment to Egypt’s oil and gas sector.
Chevron has expressed interest in three other exploration blocks in Egypt, including two as an operator in the Mediterranean.
Egypt's gas production was 4.6 billion cubic metres (bcm) in January 2024 but declined to 3.6bcm by January 2025, according to data from the Joint Organisations Data Initiative.
Atef assured that Egypt would meet rising electricity demand this summer, with plans for three to four floating storage and regasification units to stabilise natural gas supply. He added that LNG shipments were secured, and an emergency plan was developed to tackle unexpected demand increases.
Last summer, Egypt faced power shortages due to high cooling demand, leading to load-shedding and imports costing around $1.18bn.
The Egyptian Natural Gas Holding Company (EGAS) intends to execute seven gas development initiatives and introduce 24 new wells into the production landscape in the fiscal year 2025/26.