Apache Corporation has announced plans to elevate its natural gas production by an impressive 11% in the fiscal year 2024/2025. This ambitious endeavor aims to achieve a daily output of 500 million cubic feet, reflecting the company’s robust confidence in Egypt’s rich resources and strategic partnerships.
This expansion is backed by a notable investment of $1.3 billion, executed through Apache’s joint venture with Egypt’s Khalda Petroleum. The investment will also support a 5% increase in crude oil and condensate production, targeting 145,000 barrels per day. Apache’s focus remains on the prolific Western Desert, where Khalda Petroleum manages the critical concession areas.
A centerpiece of Apache’s strategy is the introduction of a new drilling rig in the Abu Gharadig field this November. This move marks a pivotal phase in Apache’s commitment to maximizing its oil and gas yields. The company’s aggressive expansion aligns with a favorable agreement secured with Egypt’s Ministry of Petroleum and Mineral Resources regarding natural gas pricing, which has invigorated Apache’s exploration and development initiatives.
Khalda Petroleum, a key player in Egypt’s oil market, currently produces approximately 140,000 barrels of oil and 450 million cubic feet of gas daily. Following a strategic merger with Qaroun Petroleum in 2022, Khalda now oversees exploration and production across both entities’ concession areas, solidifying its position as a leading oil producer in the region.
In parallel with production goals, Khalda is also contributing to carbon emission reduction targets by supplying 1.5 million liters of diesel annually to the Kalabsha project. This initiative reflects the dual commitment to energy advancement and environmental stewardship.
Egypt’s Ministry of Petroleum is simultaneously ramping up exploration and drilling activities in both offshore and onshore fields. By bolstering domestic energy supplies and generating surplus for export, these efforts are expected to significantly contribute to Egypt’s economic growth and energy independence.
The strategic collaboration between Apache Corporation and the Egyptian government underscores a shared vision for sustainable energy development and economic prosperity, promising to transform Egypt’s energy landscape and bolster its position on the global energy stage.