The Egyptian Ministry of Petroleum has announced the closure of bidding on 13 exploratory and productive areas across various geological basins, with expected investments exceeding $700 million.
According to the ministry's statement yesterday, these areas are divided along two main axes, presented through international bids and those offered under the open investment map for the first time under this system. Four areas in the Mediterranean were included under the international bidding launched by the Egyptian Natural Gas Holding Company (EGAS) last August. These areas represent promising opportunities to increase natural gas exploration, development, and utilization activities.
The ministry noted these investments could double if new discoveries are achieved and developed. A global bid was also launched for natural gas and crude oil exploration across 12 sectors in the Mediterranean and the Nile Delta, as part of its strategy to bolster and attract new investments in exploration and production through the Egypt Petroleum Exploration and Production Portal.
Last August alone, 61 investment opportunities were offered, aiming to create attractive opportunities and environments for both global and local companies to support exploration activities and increase production rates. According to Minister of Petroleum Karim Badawi, the ministry is continuing its efforts to motivate investment partners. He emphasized this as it remains one of the priorities to boost local oil and gas production.
During the Egyptian Petroleum Authority's board meeting, attended by several ministers, Badawi discussed efforts to pay monthly bills to partners and commitments to them, along with providing incentives to accelerate field development and expedite production and new exploration activities. These efforts are already evident, leading to increased productivity from fields, which helps reduce aspects of the incoming fuel and petroleum products bill over the coming period.
Egypt's Ministry of Petroleum and Mineral Resources has officially closed bids for 13 exploratory and production areas across various geological basins, with anticipated investments surpassing $700 million. These investments stand to double with potential new discoveries.
The Ministry previously indicated last August it opened 61 investment opportunities within its strategy to strengthen and attract new investments focused on exploration and production via the Egypt Petroleum Exploration and Production Portal (EUG). The recently closed bids have seen the entry of Egyptian companies for the first time within Mediterranean exploration.
The submitted bids for four Mediterranean areas are part of the international bidding process initiated by EGAS, representing substantial opportunities for increasing natural gas exploration and development. Currently, 17 exploratory areas are situated within the Mediterranean, distributed among major global companies. Companies like Eni are active within seven areas, whereas ExxonMobil and Shell each operate three, and Chevron and BP each cover two areas, reinforcing global partnerships with firms like Qatar Energy and ADNOC.
With the addition of four new areas, the total number of exploratory regions will increase by 23%, enhancing the prospects of new discoveries and supporting research and exploration efforts, particularly after the entry of the Egyptian company Kyron.
Bidding on nine areas has concluded, including four within aging fields operated by the Egyptian General Petroleum Corporation and the General Petroleum Company, aimed at redevelopment and enhancing productivity from available resources.
Five additional exploratory areas belong to the Egyptian General Petroleum Corporation and South Valley Oil Company, showcasing promising geological potentials supporting the expansion of exploration activities. The investment opportunities have attracted considerable interest from both local and global companies, including new Egyptian investors such as Nile Energy, Ezz El-Dekheila, and Fleet Oil and Gas, reflecting growing confidence in Egypt's petroleum sector.
Significant exploratory activity is expected soon with the influx of new investments, which could potentially double with the realization of commercial discoveries, thereby contributing to enhanced reserves and production. Results from evaluations and submitted offers by EGAS and the Egyptian General Petroleum Authority are expected to be announced within two months, with the General Petroleum Company disclosing its results within the next month.
This meeting aligns the ministry's commitment to the rapid execution of evaluations to guarantee the continuous flow of investments and enhancement of exploration activities. Strengthening the momentum of growth, the ministry is currently closing bids for additional investment opportunities, reinforcing the competitive investment environment and paving the way for new capital inflows within the sector.
Moving forward, the ministry plans to announce new investment opportunities, including both exploratory areas and aging fields, through the open areas system, which provides companies with flexible means to engage in exploration and production activities. The Ministry of Petroleum and Mineral Resources continues to execute its ambitious plan, focusing on increasing output and maximizing economic yields from hydrocarbon resources. Supported by clear strategies integrating the expansion of exploration, redevelopment of aging fields, and creating dynamic and appealing investment environments, the ministry leverages its strong infrastructure and continually supports innovation and technology advancements within exploration and production processes.