Backed by new investments from Canada’s Mediterra Energy, Egypt has resumed drilling operations at the Baraka oil field, at the Kom Ombo Concession, following a four-year suspension, noted a statement by the Ministry of Petroleum and Mineral Resources (MoPMR).
Karim Badawi, Minister of Petroleum and Mineral Resources, visited the oil field operated by the South Valley Egyptian Petroleum Holding Company (Ganope) to review the restart of drilling and workover operations. The resumption of operations follows the arrival of the first drilling rig in the area and the pumping of new investments by Canada’s Mediterra Energy, the concession’s investment partner, to implement a program to rehabilitate several production wells and restore them to production.
The Canadian company operates in the Kom Ombo concession areas (Al-Baraka and West Al-Baraka) in partnership with GANOPE, and in Sidr, Matarma, and Asal in Sinai in partnership with the General Petroleum Company (GPC).
Ganope Chairman Samir Raslan said drilling operations resumed last month under a program that includes workovers on seven existing wells, drilling two new wells, and technical studies for five additional wells, in cooperation with the Egypt Upstream Gateway (EUG), to identify the most prospective locations.
In July, Ganope launched a program to revive production at the oil field through workover operations on existing wells and the drilling of new development and exploration wells. Implemented in partnership with Mediterra,the initiative aims to boost unlock the hydrocarbon potential of the Kom Ombo concession. Discovered in 2007 as Upper Egypt’s first oil field, Al Baraka has experienced declining production over the years, prompting efforts to restore output from its mature wells.
The MoPMR aims to revive petroleum investments in Upper Egypt and increase domestic crude oil production, with the ongoing seismic survey in southern Egypt, covering approximately 100,000 square kilometres, being one of the multi-track plans to realize this target, according to Badawi. He said the survey will generate modern geological data to identify new investment opportunities, which will be offered to investors upon completion of their evaluation.
He also underscored a package of investment incentives, including the R-Factor fiscal mechanism and the integration of concession areas, to improve project economics and encourage companies to expand their investments.
Moreover, Badawi reaffirmed the ministry’s support for Mediterra Energy’s expansion in the region, noting that the company’s decision to resume investments followed the settlement of dues owed to foreign partners. He added that the ministry is also studying the expansion and consolidation of the company’s concession areas to further enhance the commercial viability of its operations.
Raslan added that Ganope is preparing to award six new exploration areas in southern Egypt, including South Baraka, North Baraka, and Kharit to Mediterra Energy and the General Petroleum Company, in addition to a Red Sea block for BP. The planned investments, estimated at $60–70 million, are expected to support exploration in relatively low-cost frontier areas.
