Egypt’s Petroleum Minister Karim Badawi has laid out a sweeping five-year plan to reverse declining domestic oil and gas production, centred on new contractual frameworks, aggressive drilling targets, and the adoption of advanced unconventional techniques.
Speaking before investment partners from both international and local companies, Badawi outlined a plan to drill 480 new exploration wells over five years, backed by total investments exceeding USD 5.7 billion. The strategy targets self-sufficiency in crude oil while ramping up natural gas output. New contractual systems, combined with expanded horizontal drilling and hydraulic fracturing, are expected to unlock significant increases in both production volumes and reserves.
Badawi pledged to commission comprehensive technical and economic feasibility studies to give investors clear geological and financial data, enabling more informed decision-making. He also reaffirmed the ministry’s commitment to eliminating overdue payments to foreign partners, maintaining regular monthly settlements and avoiding future arrears.
The payment commitment carries weight: Prime Minister Mostafa Madbouly confirmed that Egypt’s total arrears to international oil companies have been declining from a peak of USD 6.1 billion in mid-2024 and are now expected to fall to around USD 1.2 billion by June 2026 — a level officials describe as normal for the sector.
Source: Egypt Oil & Gas