Egypt will completely pay off all outstanding arrears owed to foreign oil and gas partners by the end of June, target hydraulic fracturing to boost production, and has announced a gas discovery with an estimated 2 trillion cubic feet of reserves, Minister of Petroleum and Mineral Resources Karim Badawi said.
During an open dialogue with domestic and international oil and gas executives, Badawi outlined the strategy to introduce horizontal drilling and fracking. The Egyptian General Petroleum Corporation (EGPC) is preparing to issue a new incentive model for partners to encourage investment in these technologies. Furthermore, the ministry has finalised modern contractual systems with service, technology, and drilling companies to reduce costs, shorten procedures, and accelerate implementation.
Badawi highlighted the positive exploration results at the “Denise West” well in Port Said, which holds the estimated 2 trillion cubic feet in reserves, and said the government’s commitment to paying regular monthly bills aims to remove a major challenge to investment.
He directed the continuous monitoring of a plan to drill 101 exploration wells this year. He stressed the need for immediate efforts before the summer to increase production from existing fields through optimal reservoir management and the addition of new reserves, which will help lower the import bill and secure energy supplies.
The push for increased domestic production comes as global geopolitical conditions inflate import costs. Badawi stated that global crude prices had increased from approximately $62 to near $100 or more per barrel, while the cost of importing liquefied natural gas (LNG) had risen from $11 to $13 per million British thermal units to around $20 currently.
“Every new discovery and every production addition, regardless of its size, represents an added value to the national economy and contributes to alleviating import burdens,” Badawi said.
The ministry is implementing a five-year plan focused on onshore and offshore areas to maximise resource utilisation over the medium term. Badawi also emphasised the importance of rationalising energy and resource consumption within companies to reduce the usage of electricity, gas, and petroleum products.
During the meeting, which included heads of production companies, their deputies, and leaders of international service companies, the minister listened to proposals regarding opportunities to maximise production and intensify exploration activities.
Concluding the meeting, Badawi pledged full support to company leaders to achieve production targets and thanked field and administrative staff, stating that their integrated efforts are vital to securing the public’s needs for petroleum products and natural gas.
