Minister of Petroleum and Mineral Resources, Karim Badawi, announced that the Ministry’s strategy of accelerating production and addressing challenges has yielded positive results. He highlighted that preliminary figures indicate an increase in production by 200 million cubic feet per day (mmcf/d) of natural gas and 39,000 barrels per day (bbl/d) of oil between July and October 2024.
This statement was made during his address at a meeting organized by the American Chamber of Commerce (AmCham) in Cairo, chaired by Eng. Tarek Tawfik. The event was attended by key figures from the petroleum sector, including Greg McDaniel, Vice President of AmCham and Vice President of Apache USA, as well as the company’s Managing Director for Egypt. Also in attendance were AmCham members, including senior executives and leaders of international companies operating in Egypt’s oil and gas sector.
Badawi stated that the ministry is focused on fostering a more investment-friendly environment for both international and national players in the oil and gas sector. This approach supports the ministry’s strategy to expedite development, production, and exploration efforts, ultimately securing local market needs and reducing the import bill.
Badawi highlighted the ministry’s commitment to regularly settling arrears with partners, introducing incentive packages to boost production, and reforming the pricing system. He also emphasized the creation of attractive investment opportunities through the Egypt Upstream Gateway (EUG) and the implementation of measures to enhance energy efficiency and support decarbonization efforts.
The Minister noted several key recent achievements, including the resumption of drilling activities in the Zohr gas field in December, aiming to add two new wells with a combined production capacity of 220 million cubic feet per day (mmcf/d). He also highlighted the acceleration of gas production from the second phase of the Raven field in the Mediterranean, starting in January, in partnership with BP, supported by additional investments.
Furthermore, Shell is set to bring two new wells online in the West Delta Deep Marine (WDDM) region of the Mediterranean, with preparations underway to add a third well by December, Badawi added.
A number of drilling rigs were also deployed in the production fields of Agiba Petroleum Company in the Western Desert to accelerate work, in addition to cooperation with Apache Corporation to implement incentive measures to increase gas production in the Western Desert gradually, he explained.
Meanwhile, the minister said that increasing oil production is a priority for the Egyptian government, pointing to the ongoing coordination and integration between the ministry and legislative institutions.
He explained that the Ministry of Petroleum and Mineral Resources (MoPMR) prioritizes leveraging existing infrastructure in oil refining and petrochemical production to boost output, as well as tapping into Egypt’s significant mining potential to increase the mining sector’s contribution to the gross domestic product (GDP).
Badawi emphasized the sector’s goal of achieving an optimal energy mix by generating 42% of electricity from renewable energy sources while enhancing Egypt’s role as a regional energy hub. He also outlined key priorities for petroleum sector activities in 2025.
For his part, Tawfik noted the positive shift under the new government, highlighting the constructive collaboration and teamwork among government ministers.
