Karim Badawi, the Minister of Petroleum and Mineral Resources, has unveiled a new set of incentives designed to enhance the production of crude oil and natural gas. This initiative, a key objective for the sector, is being pursued in collaboration with partners involved in exploration, drilling, and production activities.
During a comprehensive meeting with international petroleum production partners, Badawi emphasized that this step underscores the sector’s commitment to improving the investment climate. By encouraging partners to invest more, the goal is to boost oil and gas production, as investments are crucial for supporting and increasing petroleum output.
The Minister detailed that these incentives include new mechanisms aimed at achieving production increases beyond current levels, as well as enhancing exploratory and developmental drilling activities and production operations. A portion of the revenue generated from the increased production will be allocated to settle part of the partners’ dues, provide additional gas and oil to reduce the gap between domestic production and consumption and help lower the monthly import bill. This will free up more financial resources for both sides, enhancing investments in exploration and production activities, generating revenue for the state, and contributing to national security by ensuring a steady supply of locally produced petroleum.
The partners present at the meeting, including senior officials from the ministry, the Egyptian General Petroleum Corporation (EGPC), and holding companies, praised the initiative as a significant step towards intensifying activities and increasing production.
Samih Sabri, Senior Vice President of Wintershall Dea, remarked that the initiative is well-timed and demonstrates a keen understanding of the challenges facing the petroleum industry, particularly in adding new reserves, boosting production, and maintaining output levels amid the natural decline of wells.
Iman Hill, General Manager of Valeo Energy in Egypt, described the initiative as impressive and transparently presented, highlighting that it marks a crucial step in addressing the challenges faced by the industry. She noted that the real challenge lies in execution, which must be overcome.
Dalia El-Gabry, President of Shell Egypt, praised the initiative as bold, stressing that success hinges on consistent application and continuity. She underscored the importance of productive cooperation, which is essential to reaping mutual benefits, especially given the trust-building potential the initiative offers.
Nicholas Katcharov, Regional Director of Greece’s Energean, also highlighted the importance of continuity in implementation, describing the initiative as positive.
In a related development, the Ministry of Petroleum and Mineral Resources announced that the Egyptian Natural Gas Holding Company (EGAS) has launched a new global bid for 2024 to explore natural gas and crude oil in 12 sectors across the Mediterranean Sea and Nile Delta. The bid includes 10 offshore sectors and two onshore sectors and is being conducted through Egypt Upstream Gateway (EUG).
This bid aligns with the Ministry’s ongoing efforts to attract new investments to Egypt, in line with its strategy to capitalize on promising opportunities in gas and oil exploration, particularly in the Mediterranean, which is regarded as a significant natural gas basin.
Minister Badawi explained that this gas exploration bid supports Egypt’s broader strategy to intensify exploration activities in the Mediterranean, given the increasing interest in making discoveries and boosting natural gas production, which has become a critical component of the local and global energy mix.
He further noted that this is the eighth bid to be launched using the latest digital tools via EUG, launched by the ministry at the beginning of 2021. The platform provides easy, quick, and convenient access to essential information and up-to-date technical data related to the bids, accelerating the evaluation of investment opportunities and the submission of proposals.
Moreover, the Minister of Petroleum and Mineral Resources announced the availability of additional investment opportunities in exploration and field development in open areas, accessible through the EUG. The portal allows interested companies to review all available geological and production data and submit their bids directly, enhancing transparency and efficiency in the bidding process and encouraging further investment.
