Karim Badawi, Minister of Petroleum and Mineral Resources, affirmed that the sector’s five-year plan to increase oil and gas production includes implementing new contractual frameworks to attract investments alongside expanding the use of unconventional drilling methods and the latest production technologies.

Badawi highlighted the importance of conducting comprehensive technical and economic feasibility studies as part of the plan, noting that such studies provide geological and financial data that help investors make well-informed investment decisions based on clear foundations.

The remarks came during a meeting with representatives of investment partners involved in oil and gas production from both international and local companies. They discussed key features of the plan aimed at reversing the decline of oil and gas local production. The plan, revealed by Badawi in October, entails the drilling of 480 new oil and gas exploration wells over the next five years, with total investments exceeding $5.7 billion.

The Ministry of Petroleum and Mineral Resources (MoPMR) has set a five-year exploration and production plan to achieve self-sufficiency in crude oil while boosting natural gas output and reversing recent declines in production.

The minister explained that the new contractual systems, combined with the expansion of horizontal drilling and hydraulic fracturing techniques, could open broader prospects for achieving tangible increases in both production and reserves. He also reviewed international experiences where similar systems helped drive transformations in the energy sector and raise production levels.

Badawi further stressed commitment to reduce overdue payments to foreign partners until they are fully settled, while maintaining regular payment of the monthly bills and avoiding any future delays. He noted that the ministry adopts a continuous consultation approach with investors to identify their requirements and proposals and reach the most effective frameworks that deliver mutual benefits to all parties.

According to Prime Minister Mostafa Madbouly, Egypt’s total arrears to international oil companies declined from a peak of $6.1 billion in mid-2024 and are expected to fall to around $1.2 billion by June 2026, which officials consider a normal level for the sector.