Egypt to drill 46 new oil, gas wells with $748.5M investment

CAIRO – 16 December 2024: The Egyptian government has unveiled plans to drill 46 new oil and gas exploration wells during the current fiscal year, with a total investment of $748.5 million.

Minister of Petroleum and Mineral Resources, Karim Badawi, announced that 15 agreements are currently being negotiated, accompanied by $20 million in signature bonuses.

 He underscored the government’s focus on accelerating exploration and production activities to boost domestic output, reduce reliance on imports, and secure additional reserves.

The minister highlighted efforts to optimize refining capacity at key facilities like the MIDOR refinery and petrochemical plants, aiming to enhance value addition.

Simultaneously, initiatives to expand natural gas connections to households and promote the conversion of vehicles to natural gas are ongoing, with the goal of reducing gasoline usage and achieving economic and environmental benefits.

Badawi emphasized that plans are in place to secure fuel supplies, settle dues to production and exploration partners, and foster legislative cooperation with Egypt’s Parliament.

 These efforts, supported by the Energy and Environment Committee and the Industry Committee, aim to accelerate investment and streamline agreements.

According to Badawi, Egypt currently hosts 57 companies in exploration, production, and related services, including eight major international corporations, six specialized Egyptian firms, and over 12 global service providers.

In September, more than 20 Egyptian investors were invited to explore opportunities in advanced field development, leading to the signing of new Memorandums of Understanding (MoUs) and the involvement of additional private sector players.

Between January and October 2024, Egypt drilled 77 wells, resulting in 54 discoveries—40 for oil and 14 for gas. These efforts added 71 million barrels of oil and 680 billion cubic feet of natural gas to the country’s reserves.

Key milestones between July and December 2024 include Chevron and ExxonMobil launching exploratory drilling in the Western Mediterranean, while a seismic survey spanning 2,185 kilometers was completed in September. Preparations are now underway for the third phase of exploration in the Gulf of Suez and the Red Sea.

Looking ahead, the government plans to allocate new exploration areas, including eight mature fields in the Gulf of Suez and Eastern Desert, four exploration blocks in the Western Desert, and five additional areas under the General Petroleum Corporation’s bidding rounds.