Egypt: A $342 million partnership to boost oil and gas production

Egypt's Minister of Petroleum and Mineral Resources, Karim Badawi, recently signed two major agreements with international companies, aimed at boosting natural gas exploration and production in Egypt. These agreements represent a total investment of $342 million and mark a key step in the country's energy development.

The first of the two agreements was signed between the Egyptian General Petroleum Corporation (EGPC), Shell Egypt and Malaysia's Petronas. This strategic partnership provides for the injection of $222 million into the Western Delta region. The main objective of this investment is to increase natural gas production.

Agreement details

- Total investment: $222 million
- Target region: Western Delta
- Drilling: Three new natural gas wells
- Expected production capacity: up to 200 million cubic feet by the end of 2024

This agreement underscores Egypt's commitment to strengthening its natural gas production by partnering with global industry leaders.

The second agreement was signed between EGPC, Cheiron Energy and Kuwait Foreign Petroleum Exploration Company (KUFPEC). It concerns the injection of around $120 million to increase production and extend exploration in the Geisum and Tawila West areas, located in the Gulf of Suez.

Agreement details

- Total investment: $120 million
- Target region: Geisum and Tawila West, Gulf of Suez
- Drilling: Nine wells, including three exploration wells
- Expected Production Capacity: Increase in production from 21,000 to 26,000 barrels of crude oil per day

This agreement underlines the importance of diversifying exploration zones to maximize Egypt's energy production.

Minister Karim Badawi has expressed his ambition to boost the country's overall oil and gas production. His priorities include :

- Research and Exploration: Increase oil and gas reserves through intensive research and exploration activities.
- Production capacity: Increase existing production capacity to meet growing energy demand.
- Infrastructure development: Set up modern infrastructures to reduce production costs and improve efficiency.

The agreements signed by Minister Karim Badawi represent a significant step forward for the Egyptian energy industry. They illustrate a well-defined strategy aimed at strengthening Egypt's position as a major producer of natural gas and oil. With these investments, Egypt is preparing for a more self-sufficient and prosperous energy future.