Chevron, Egypt reach deal to explore new East Med gas deal (NYSE: CVX)

TebNad / iStock via Getty Images

The Egyptian state gas company EGAS and Chevron (NYSE:CVX) on Monday signed a memorandum of understanding to study the shipment of natural gas from offshore Mediterranean fields in Egypt for processing and export, reports Reuters.

chevron (CVX) two years ago acquired about 40% stake in a large natural gas field in the eastern Mediterranean off the coast of Israel, where it now plans to drill its first exploratory well in September, the Egyptian Ministry of Oil said.

The company also said it was considering monetizing gas in the region, including floating liquefied natural gas technology.

If the agreement is finalized, the gas could be made available for Egypt’s internal market or converted into liquefied natural gas, Chevron (CVX) according to reports.

chevron (CVX) is “already valued by the market with a mark-up over its peers, which raises the ceiling for its shares”, writes The Value Pendulum in analysis recently published in Seeking Alpha.

Related Posts

Leave a Reply

Your email address will not be published.