Egypt plans to drill 110 exploratory wells for oil, gas worth USD1.2B in current fiscal year
Date
7/15/2024 4:03:16 AM
(MENAFN) Egypt is set to undertake an ambitious plan to drill 110 exploratory wells for oil and gas, with a projected investment of approximately 1.2 billion U.S. dollars for the fiscal year 2024/2025. Minister of petroleum and Mineral Resources Karim Badawi shared these details in a statement on Sunday during a meeting with a parliamentary committee that is reviewing the new government's program.
Looking ahead, Badawi noted that the country plans to drill a total of 586 exploratory wells by 2030, which will require an overall investment of about 7.2 billion U.S. dollars. Currently, there are 145 active commitment agreements in place for oil and gas research and exploration, established with 40 different partners.
However, the minister acknowledged that there are several challenges facing exploration activities. These include regional competition for investment opportunities, the need for accompanying economic incentives, and the slow pace of implementing research and exploration initiatives. To address these challenges, Badawi outlined plans to introduce new incentives for both existing and future opportunities, particularly focusing on unconventional reservoirs. Additionally, the ministry aims to develop a global marketing strategy to attract new investments and will utilize the Egypt Exploration and Production Portal to offer global bids.
Egypt aspires to establish itself as a regional trade hub for oil and liquefied natural gas, especially following significant discoveries in recent years, such as the Zohr gas field in the Mediterranean, which is estimated to contain around 30 trillion cubic feet of gas. This strategic push is part of Egypt's broader efforts to enhance its position in the energy sector and maximize the potential of its natural resources.
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