The Al-Hamra petroleum port has commenced crude oil storage and trading for third parties as part of a strategy to transform the facility into a regional logistics hub, Egypt’s Petroleum Minister Karim Badawi said on Wednesday.
The launch of the new activity follows the approval of an amended budget for the fiscal year (FY) 2025/26 for the Western Desert Operating Petroleum Company (Wepco), which manages the port in New Alamein. Badawi stated that the move is a “significant step” toward leveraging the port’s strategic location on the Mediterranean coast.
Ibrahim Masoud, chairperson of Wepco, said the company plans to trade approximately 88m barrels during the 2026/2027 fiscal year through offshore facilities and pipelines, averaging 240,000 barrels per day (bpd). This includes a target of 31m barrels of crude via marine facilities as the port expands its capacity to receive and store international shipments for third parties.
Expansion projects currently underway aim to increase the port’s total crude storage capacity to 5.3m barrels from the current 2.8m barrels. Masoud added that leased storage capacity is set to double to 300,000 cubic metres from 150,000 cubic metres following the commissioning of two new tanks. The port also plans to launch a modern marine pollution control system next week.
During a general assembly for Wepco’s subsidiary, Badr Petroleum, Badawi directed the company to conduct studies on horizontal drilling and hydraulic fracturing (fracking) in the Western Desert. The minister described these techniques as “effective methods” for achieving a qualitative leap in production by reaching untapped resources, citing successful regional and international models.
Badr Petroleum reported an average production of 6,500 barrels of oil equivalent per day during the first half of the current fiscal year. Masoud noted that two developmental wells were drilled to boost gas production, with the second well expected to come online next week. The company’s amended 2025/2026 budget includes the addition of a new developmental well at the Badr-1 field.
The company’s five-year plan for increasing production and reserves involves adding two new concession areas in the Western Desert. It also includes expanding drilling in unconventional reservoirs in partnership with Tag Oil and applying modern technologies to increase output.
In addition to industrial operations, Wepco is overseeing the development of the Sidi Abdel Rahman school in the Matrouh governorate to qualify it for international green building certification, Masoud said.
