Egypt has recently doubled its plans to accelerate the development of its oil and gas resources. The country's goal is to achieve a production capacity of 6.6 billion cubic feet per day by 2027, supported by increased drilling, new exploration incentives, and more investment from major international oil and gas companies.
Discussions to Accelerate Investment
In October, Egypt's Minister of Petroleum and Mineral Resources, Karim Badawy, met with Cyprus's Minister of Energy, Michael Demetriou, Secretary General of the East Mediterranean Gas Forum, Osama Mubarez, and executives from international oil and gas companies operating in Egypt at the roundtable "The Future of Energy in Egypt" to discuss how to accelerate investment in this sector and increase production.
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The Egyptian government intends to expedite the development of new discoveries and connect them to the country's existing infrastructure to maximize economic returns from this sector. Badawy stated that the ministry hopes to strengthen regional collaborations and transform Egypt into a regional hub.
Development Challenges and Future Plans
The government also plans to spend over $4 billion to improve six refineries with the aim of modernizing existing refineries and increasing domestic production of higher-value petrochemical products. The country's five-year strategy includes conducting seismic surveys, utilizing advanced technologies, creating new contractual frameworks, and developing discoveries that have not yet reached production.
Italian oil and gas company Eni has announced its intention to increase its investment in Egypt and drill 30 exploratory wells and 200 development wells. Eni has invested approximately $8.5 billion in Egypt to date and is expected to produce around 242,000 barrels per day equivalent of oil by 2025.
Given the decline in oil and gas production in recent years, Egypt hopes to reverse the downward trend in production by attracting more investment in oil and gas exploration and development. Eni is also looking to leverage Egypt's existing infrastructure to expedite the launch of new production.
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