Egypt has announced plans to drill 46 new oil and gas exploration wells during the current fiscal year. This ambitious venture, backed by a formidable investment of $748.5 million, underscores the country’s determination to enhance domestic output, reduce import dependency, and secure additional reserves.
Minister of Petroleum and Mineral Resources, Karim Badawi, revealed that alongside these drilling plans, 15 agreements are on the negotiation table, coupled with $20 million in signature bonuses. The minister emphasized the government’s commitment to accelerating exploration and production activities, optimizing refining capacities at pivotal facilities like the MIDOR refinery, and expanding petrochemical capabilities to bolster value addition.
In tandem with these efforts, Egypt is actively expanding natural gas connections to households and encouraging the conversion of vehicles to natural gas. These initiatives aim to cut gasoline consumption and deliver both economic and environmental benefits.
Minister Badawi also highlighted that the government is focused on ensuring fuel supply security, settling dues with exploration partners, and enhancing legislative cooperation with Egypt’s Parliament. These strategic moves, endorsed by the Energy and Environment Committee and the Industry Committee, aim to streamline investments and agreements in the energy sector.
Currently, Egypt hosts a vibrant ecosystem of 57 companies engaged in exploration, production, and related services. This includes eight major international corporations, six specialized Egyptian firms, and over 12 global service providers. To further stimulate the sector, over 20 Egyptian investors have been invited to explore advanced field development opportunities, leading to the signing of new Memorandums of Understanding (MoUs) and attracting additional private sector involvement.
Between January and October 2024, Egypt drilled 77 wells, yielding 54 discoveries—40 in oil and 14 in gas—adding 71 million barrels of oil and 680 billion cubic feet of natural gas to the country’s reserves. In the latter half of the year, notable milestones include Chevron and ExxonMobil launching exploratory drilling in the Western Mediterranean and the completion of a seismic survey spanning 2,185 kilometers.
The Egyptian government is already setting sights on new exploration territories, with plans to allocate areas for exploration, including eight mature fields in the Gulf of Suez and Eastern Desert, four exploration blocks in the Western Desert, and additional areas under the General Petroleum Corporation’s bidding rounds.
As Egypt charts this ambitious course in its energy sector, investors are presented with numerous opportunities to engage in a dynamic market poised for growth.
