Sunday 22 Dec
Minister of Petroleum and Mineral Resources Karim Badawy praised the success of the ministry's strategy in addressing challenges and accelerating development, production, and exploration efforts. Preliminary data reveals a significant increase in oil and gas production between July and October: a 200 million cubic feet per day boost in gas and a 39,000 barrels per day rise in crude oil. The ministry's continued implementation of incentive policies to attract investment and overcome challenges has encouraged global companies to expedite their operations in development, production, and exploration.
Minister Badawy made these remarks during a meeting hosted by the American Chamber of Commerce in Cairo, led by Engineer Tarek Tawfik. The event was attended by petroleum industry leaders, including Greg McDaniel, Vice President of the Chamber and Vice President and Egypt Manager of Apache Corporation. Other participants included members of the Chamber representing global companies operating in Egypt's oil and gas sector.
To attract domestic and international investment, the Ministry of Petroleum and Mineral Resources is creating a more favourable environment for the oil and gas sector. This strategy aims to accelerate development, production, and exploration to secure local energy needs and reduce reliance on imports. To address challenges like payment arrears to foreign partners, the ministry has prioritized regular payments, implemented incentive programs, and reformed pricing mechanisms. Additionally, the ministry has launched the Egypt Upstream Gateway (EUG) to facilitate investment opportunities and is collaborating with global partners to optimize production costs and improve energy efficiency while reducing carbon emissions.
Recent positive developments
include the resumption of drilling activities at the Zohr gas field, adding two
new wells with a combined production capacity of 220 million cubic feet of gas
per day. The second phase of the North Alexandria gas field is set to commence
production in January, thanks to additional investments from BP. Shell has
successfully added two new wells to its natural gas production in the deep waters
of the Western Delta, with a third well planned for the coming month. Agiba
Petroleum Company is accelerating operations in the Western Desert, and Apache
Corporation is implementing incentive measures to gradually increase gas
production in the region.
Increasing oil production is a
priority for the Egyptian government, which is working collaboratively to
achieve this goal. The Ministry of Petroleum and Mineral Resources is
coordinating closely with legislative institutions to ensure smooth implementation
of its strategies.
Badawy noted that the ministry's priorities also include optimizing existing infrastructure in oil refining and petrochemicals to boost production and exports. To enhance the mining sector's contribution to the national economy, the ministry is focusing on developing attractive mineral exploitation contracts to incentivize investment. Additionally, the ministry is collaborating with the Ministry of Electricity to create a diversified energy mix that prioritizes renewable energy sources. By 2030, the goal is to generate 42% of electricity from renewable energy, freeing up natural gas for domestic industries and promoting energy efficiency and environmental sustainability in the oil and gas sector.
