CAIRO — Egypt has launched a new offshore gas drilling campaign in the Mediterranean following the arrival of the Valaris DS-12 in its territorial waters, marking a renewed push to expand domestic energy production.
According to the Ministry of Petroleum and Mineral Resources, the campaign will target four wells, beginning with one production and one exploratory well for BP, followed by two exploratory wells for Arcius Energy, a joint venture between BP and ADNOC.
The programme forms part of Egypt’s broader strategy to intensify offshore exploration and accelerate the development of gas resources to meet rising domestic demand. Authorities plan to drill more than 100 exploratory wells in 2026, alongside ongoing development activity in existing fields.
Officials say the renewed activity reflects improving investor confidence, supported by government measures to enhance the investment climate, including the settlement of outstanding payments to international partners. Petroleum Minister Karim Badawi said remaining arrears—estimated at around $1.3 billion—will be cleared by June 2026, down from approximately $6.1 billion in mid-2024.
The ministry added that maintaining regular payments alongside clearing legacy debt has already encouraged major international energy companies to scale up their commitments. Eni is planning investments of around $8 billion, while BP has committed about $5 billion and Arcius Energy roughly $2 billion. Shell has also expanded exploration in the Mediterranean, while Apache Corporation has increased its activity in Egypt’s Western Desert.
Officials indicated that the decline in production has been contained, with exploration and development activity regaining momentum, positioning the sector for gradual output growth over the coming years.
