The Egyptian government, emphasizing oil and gas resource development plans, aims to increase daily production capacity to 6.6 billion cubic feet by 2027. This program includes increasing drilling operations and offering new incentives for exploration and attracting more investment from major oil and gas companies worldwide.
Discussions by the Egyptian Oil Minister
Kareem Badawy, Egypt's Minister of Petroleum and Mineral Resources, met in October at a roundtable titled "The Future of Energy in Egypt" with Michael Damianou, the Minister of Energy of Cyprus, and Osama Mbarez, the Secretary-General of the Eastern Mediterranean Gas Forum, to discuss ways to accelerate investment in this sector and increase production. Badawy emphasized that the government intends to maximize the economic returns from this sector by developing discovered fields and connecting them to existing infrastructure.
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Existing Challenges and Development Solutions
Egypt's oil and gas production has declined in recent years due to the depletion of offshore fields, particularly the giant gas field "Zohr." In this context, Egypt is seeking to attract more investment for the development of discovered fields. The country hopes to reduce the costs of new operations by leveraging existing infrastructure and attract more investors to this sector.
Egypt also has an extensive transportation network, gas receiving facilities, commercial facilities, and liquefied gas capacity, which, due to its strategic location, provides access to diverse markets. Badawy announced at the opening ceremony of the Mediterranean Oil and Gas Conference and Exhibition in October that Egypt will bring 591 new wells into production from July 2024 to June 2026 and conduct 113 new explorations.
He added that Egypt has been able to increase investments by successfully settling its overdue debts to investment partners. The government also plans to double crude oil and condensate production within a five-year energy strategy and invest over $4 billion to upgrade six refineries.
In this regard, Abdel Fattah el-Sisi, the President of Egypt, discussed the development of energy activities in the country during a meeting with Claudio Descalzi, CEO of Eni Italy. Descalzi announced that the company plans to drill 30 exploratory wells and 200 development wells. Eni has invested approximately $8.5 billion in Egypt and will produce the equivalent of 242,000 barrels of oil daily by 2025.
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