Egypt's Minister of Petroleum and Mineral Resources Karim Badawi announced plans to fully pay off arrears owed to foreign oil and gas partners by the end of June. He revealed a gas discovery estimated at 2 trillion cubic feet and outlined strategies including hydraulic fracturing to boost production.
Minister Karim Badawi made these statements during an open dialogue with domestic and international oil and gas executives. He outlined a strategy to introduce horizontal drilling and hydraulic fracturing to boost production, with the Egyptian General Petroleum Corporation (EGPC) preparing a new incentive model to encourage investment in these technologies.
Badawi highlighted positive exploration results at the “Denise West” well in Port Said, holding an estimated 2 trillion cubic feet of gas reserves, and stressed the government's commitment to regular monthly bill payments to remove a major investment barrier. He directed continuous monitoring of a plan to drill 101 exploration wells this year and called for immediate efforts to increase output from existing fields before summer through optimal reservoir management.
The push for higher domestic production comes amid global geopolitical conditions inflating import costs, with crude prices rising from about $62 to nearly $100 or more per barrel, and liquefied natural gas (LNG) import costs climbing from $11-13 to around $20 per million British thermal units.
“Every new discovery and every production addition, regardless of its size, represents an added value to the national economy and contributes to alleviating import burdens,” Badawi said. The ministry is implementing a five-year plan focused on onshore and offshore areas, while emphasizing rationalization of energy consumption within companies. Concluding the meeting, he pledged full support to company leaders to meet production targets.