Egypt’s Ministry of Petroleum and Mineral Resources has officially launched an international bid round offering four offshore blocks in the Red Sea for oil and gas exploration, as announced by Minister Karim Badawi during ADIPEC 2025 in Abu Dhabi.
The round, managed by state-owned Ganoub El Wadi Petroleum Holding Company (Ganope), includes RS-Block 1, RS-Block 2, RS-Block 3, and RS-Block 4. Submissions will remain open until Sunday, 3 May 2026, at 12:00 PM.
According to the minister, the Red Sea represents one of Egypt’s most promising frontier petroleum regions. The new round targets investment in deepwater areas that have seen limited exploration to date and will employ a production-sharing model linked to the R-factor, which ties contractor returns to risk and investment levels.
Badawi explained that the new framework aims to encourage international participation and expand exploration in underdeveloped geological zones. He added that the initiative supports Egypt’s broader energy strategy to attract foreign capital, modernize contractual systems, and increase domestic hydrocarbon output.
The four contiguous blocks, each ranging between 5,234 and 6,216 square kilometres, lie in the northwestern sector of the Red Sea. Blocks 1 and 2 are located just south of the Gulf of Suez. Historical exploration records indicate that Esso drilled three wells in Block 1 and two in Block 2 between the 1970s and 1980s, with all wells reporting oil and gas shows. Hess later conducted additional drilling activity in Block 2 around 2010.
Blocks 3 and 4 each hosted one exploration well drilled by Phillips in the 1970s. While all four blocks are covered by 2D seismic data, 3D seismic surveys have been completed across Blocks 1 and 2 and parts of Blocks 3 and 4.
Badawi noted that the bid round forms part of the ministry’s plan to make better use of Egypt’s natural resources and strengthen the country’s production base. He emphasized that the ministry is focusing on creating a stable, competitive investment environment aligned with international industry standards.
This announcement follows Badawi’s earlier presentation of the same initiative during the World Energies Summit in London in October, where he previewed the round through the Egypt Upstream Gateway (EUG) in discussions with SLB’s Director of Exploration Data and Digital Solutions, Andrea Lovatini.
The new offering builds on the 2019 Red Sea bid round, in which Chevron was awarded Block 1, Shell secured Block 3, and Shell–Mubadala jointly obtained Block 4.
Source: African Energy Council, Upstream
