In a significant move aimed at bolstering Egypt's petroleum resources, a consortium comprising Saudi Arabian and Egyptian entities has embarked on oil exploration endeavors in the Gulf of Suez. The signing of two pivotal agreements for oil exploration and production in this region took place on Tuesday, witnessed by Egypt's Minister of Petroleum, Tarek El-Molla.
The agreements, inked by directors and chairpersons of ADES Holding Co. from Saudi Arabia, in conjunction with Gharib Integrated Oil Services Co., SUCO Oil Company, and OSOCO Oil Company from Egypt, mark a collaborative effort towards optimizing oil field utilization, enhancing production rates, improving economic performance, and curbing import costs.
These agreements materialized as a result of the inaugural international bid initiated by the Egyptian General Petroleum Corporation in September 2023, specifically targeting the Gulf of Suez. The bid encompassed 23 prospective areas, including ten in the Western Desert, two in the Eastern Desert, seven in the Suez Gulf area, and four in the Red Sea.
Minister El-Molla underscored the strategic significance of these deals, emphasizing their alignment with Egypt's broader agenda of leveraging its petroleum potential to drive economic growth and energy self-sufficiency. Additionally, he revealed plans for Egypt to launch new international bids in 2024, spanning the exploration of oil, natural gas, and gold, further signaling the nation's commitment to tapping into untapped reserves and diversifying its resource portfolio.
Egypt's dedication to fortifying its petroleum sector is evident in its substantial investment plans. State-owned oil companies are projected to invest over EGP 23 billion in the upcoming fiscal year 2024/2025, with the current fiscal year witnessing total investments in oil and natural gas soaring to EGP 277 billion. Over the past half-decade, Egypt's petroleum sector, in collaboration with international partners, has made significant strides, drilling 576 new exploratory natural gas wells and discovering 289 reserves in both gas and petroleum.
Looking ahead, Egypt's ambitions in the energy sector remain steadfast. By 2025, the nation aims to initiate the drilling of 35 new exploratory natural gas wells in the Mediterranean and the Nile Delta, a venture projected to cost $1.8 billion. These initiatives underscore Egypt's proactive approach towards securing its energy future and positioning itself as a key player in the global energy landscape.
