Sorn in early July in a landmark Cabinet reshuffle, Minister of Petroleum and Mineral Resources Karim Badawi, a longtime veteran of SLB (formerly known as Schlumberger), has inherited a burgeoning petroleum industry that has followed an ambitious Modernization program since 2016 but faces a myriad of different challenges that need to be tackled for the Egyptian energy sector to truly realize its vision and place within the global market.
Yet, challenges are no stranger to Badawi with his corporate experience bringing multiple advantages to the table, holding key leading positions in SLB as Director at SLB New Energy, Middle East & North Africa, and Managing Director of Schlumberger Egypt. Upon his recent appointment, he has already hit the ground running, vowing to end the country’s power outages with prompt delivery of natural gas and mazut. With boosting production becoming a main priority to permanently resolve ongoing electricity shortages, the development of new discoveries has also become a key priority for the coming period under Badawi’s leadership. His experience as a Field Engineer will prove to be a vital source of know-how. “To boost local oil and gas production (crude oil and natural gas), we’re fast-tracking the development of newly discovered wells and intensifying exploration efforts across Egypt’s land and maritime territories,” Badawi stated in his early messages to the Egyptian people following his swearing-in as Minister of Petroleum and Mineral Resources.
Similar to other sectors, the petroleum industry has embarked on a rigorous long-term reform program, as part of Egypt’s Vision 2030, that will completely reshape the face of the energy sector. As the Minister of Petroleum and Mineral Resources, Badawi comes with the promise to champion these necessary changes by steering the market in the right direction as he did in SLB (Schlumberger). Having occupied several key positions within the company, he was highly involved in organizational structures, managing change, generating result-oriented strategies, financing, and enabling effective operational performance. He also spearheaded several major initiatives to optimize management and efficiency within the petroleum sector, creating an ideal climate for innovation and emissions abatement. “With a focus on the future and building upon past achievements, the petroleum sector embarks on a collaborative journey to contribute further to the national economy. We leverage our capabilities, rich history, reliable partners, established relationships, and extensive expertise to achieve this,” said Badawi. “We work together under a new government program that aims to continue the path of economic reform, focusing on attracting and increasing local and foreign investment, encouraging private sector growth, and making every effort to further develop the comprehensive economic performance of the state in all sectors, at the forefront of which are the petroleum and mining sectors.”
Being Egypt’s Minister of Petroleum is a local position with global implications, given Egypt’s importance on the world stage. Egypt not only needs a petroleum minister who can ensure the sector grows internally but expands on a regional and global level. This is a key element behind realizing the country’s ambitions of becoming a major regional energy trading hub that lies at the center of three global markets. This is a cause that Badawi himself asserts that he will remain committed to as Minister of Petroleum and Mineral Resources. “We prioritize solidifying Egypt’s position as a leading energy hub for trade within the region, leveraging its established presence as a major center in Africa, the Middle East, and the Mediterranean, and its long-standing reputation as a source of top talent in the oil and gas sector.”
For Egypt to realize its position as a regional trade hub, it has to effectively engage with other countries on a wider scale. Global exposure and the ability to build bridges across boundaries is never in short supply, as Egypt’s new Minister of Petroleum was known to have participated in several prominent energy events taking place in different parts of the world.
With the energy transition being a key long-term objective, these global engagements in decarbonization will most certainly be an asset in Badawi’s quest to realize Egypt’s ambitions in emissions reduction through the promotion of cleaner energy supplies, with the Egyptian state aiming to increase the share of renewables for electricity generation in the energy mix to 42% by 2035. “We will champion Egypt’s energy transition by actively diversifying the country’s energy sources.” In addition, he said, “We will actively seek new investments in exploration and development, with a focus on emerging energy sources like hydrogen.”
Yet, the energy transition cannot be fully realized without an effective and swift digitalization strategy that will enable the Egyptian energy market to keep pace with its global competitors. Badawi himself is a pioneer of the digital world, playing a crucial role in the foundation of the digital platform Egypt Upstream Gateway (EUG). This platform was a key investment tool for the petroleum sector, successfully rounding up international bid rounds digitally. EUG is a trendsetter in the oil and gas world, effectively digitizing all geological data to attract investments while working to reduce risks for investors as well as open new opportunities for oil and gas exploration and production. For the coming period, Badawi asserts that the full integration of digital technologies in Egypt’s petroleum will be on his priority list, saying: “Leveraging digital technologies, we will promote new investment opportunities in oil and gas exploration and production, alongside facilitating and offering attractive incentives to boost investment in this sector.” Additionally, Badawi’s background in seismic surveys using the latest technologies for effective oil and gas exploration and production operations in the Gulf of Suez should prove pivotal.
Corporate social responsibility (CSR) is a key challenge and a priority for the current Minister who said, “Empowering communities surrounding our operations is a key priority. We’ll maximize the positive social impact of the oil and gas sector in these areas.” Known for its many CSR projects, Badawi offers the kind of leadership the oil and gas sector needs.
Finally, it’s important to note that building a petroleum sector that can reach its true potential is not a one-man show. It needs the contribution of the entire industry as a whole, a wisdom that is shared by many successful corporate leaders and Badawi happens to be one of them saying “We’re committed to continuous upskilling and development of our petroleum workforce, fostering strong leadership.” This highlights the most important challenge that the current Minister faces. Building the right people to build a better petroleum sector for a better tomorrow!
As Minister of Petroleum and Mineral Resources, Karim Badawi steps into a role laden with both significant achievements and formidable challenges. His extensive experience at SLB and his proactive approach to leadership are poised to steer Egypt’s petroleum sector towards greater heights.
