Up to early nineties, proven reserves were limited to about 112 TCF, this implied the necessity to adopt an action plan to enhance investment in upstream activities, taking into consideration the unique features of exploration and development of gas fields having a lead time between investing and earning any revenues upon production.

Recoverable natural gas reserves reached 68.2 TCF as of June 30th,2006 after deducting produced amounts during the period 2000/2001 – 2005/2006.

The Mediterranean area holds the largest amounts of total gas reserves of 78% followed by the western Desert 11%, Gulf of Suez 8% and the Nile Delta 3%.

Gas reserves yet to prove is estimated to be 120 TCF which still need further efforts maximizing utilization of latest technological advances in the field and increasing investments in exploration and production as well as attracting foreign international investors.

H.E Eng. Sameh Fahmy, Ministry of Petroleum, has signed the first two EGAS concession agreements in the Mediterranean Sea areas on 7th of June 2004;one with IEOC and cofpec in the Tina offshore Area and the second with IEOC and Baltim offshore with a total drilling commitment of 8 wells and conducting seismic studies in both areas. Signature bonus amounted to 3.5 million Dollars and total expenditure 36.5 million Dollars.

These agreements were followed by 17 agreements in 2006/2007.