Egypt is preparing to deploy horizontal drilling and hydraulic fracturing technologies to accelerate production growth, with Petroleum and Mineral Resources Minister Karim Badawi confirming the ministry’s readiness to adopt the advanced techniques following the establishment of a more favourable investment climate.
Horizontal drilling — a method of drilling wells laterally within rock formations to maximise reservoir contact — and hydraulic fracturing, which involves injecting high-pressure fluid to create fractures that allow hydrocarbons to flow more freely, have both proven highly effective in boosting output in major oil and gas producing countries around the world.
The Egyptian General Petroleum Corporation is preparing a new incentive scheme to encourage investment in these technologies. The ministry has also finalised modern contractual systems with service and drilling companies, designed to reduce costs, accelerate execution and streamline regulatory procedures.
Badawi highlighted the importance of having cleared outstanding financial arrears owed to the sector as a prerequisite for renewed investment confidence, noting that arrears have been reduced from approximately $6.1 billion in June 2024 to $1.3 billion currently, with full settlement expected by June 2026.
On near-term priorities, the minister pointed to positive results from the Denis West well in Port Said, which holds estimated reserves of 2 trillion cubic feet of natural gas, and stressed the need to maximise output from existing fields ahead of the summer peak demand season through optimal reservoir management.
Source: Egypt Oil & Gas