RIYADH: Egypt has formulated an ambitious plan worth $1.8 billion to drill 35 new gas wells across the Mediterranean Sea, the Nile Delta and the Western Desert by 2025.
During the 8th OPEC International Seminar held from July 4-5 in Vienna, Egyptian Minister of Petroleum and Mineral Resources Tarek El-Molla revealed the program to boost the country’s production capacity, according to statements provided to the Emirates News Agency, also known as WAM.
The project aims to drill 21 gas wells during the fiscal year 2023-2024 and another 14 in the following year with the involvement of major international companies like Eni, Chevron, ExxonMobil, Shell and BP.
El-Molla highlighted the Egyptian petroleum sector’s efforts, along with its international partners, in exploring new oil and gas resources.
Over the past five years, Egypt has discovered 284 new fields, comprising 217 oil wells and 67 gas wells.
He added that these new fields have greatly boosted production by adding 1.32 billion barrels of oil to the country’s reserves.
El-Molla further discussed Egypt’s energy landscape, emphasizing that its oil and gas production satisfactorily meets most of its energy needs.
Fossil fuels constitute 93 percent of the primary energy sources in Egypt. These sources essentially cater to around 75 percent of domestic consumption, with the remaining accounted for through imports.
“The Egyptian government has decided to speed up its transition to clean energy in the electricity sector so that renewable energy capacity should contribute 42 percent of power capacity by 2035,” he noted.
El-Molla also remarked on the oil market’s outlook for next year by stating that the Organization of the Petroleum Exporting Countries adopts decisions responsive to market changes and supply dynamics, and he expects oil prices to range between $70 and $80 over the coming period.
Additionally, Egypt signed an agreement on Wednesday to allocate a plot of land to the Norwegian company Scatec for the establishment of a $5 billion wind power plant in the west of Sohag Governorate in Upper Egypt.
Expected to generate 5 gigawatts of electricity annually, the project aims to contribute to the country’s goal of having renewable energy account for 42 percent of the country’s energy mix by 2030.
The agreement was signed between Egypt’s Ministry of Electricity and Renewable Energy, represented by the New and Renewable Energy Authority, and Scatec.
The signing ceremony was attended by Prime Minister Mostafa Madbouly and included the executive chairman of the New and Renewable Energy Authority, Mohammed El-Khayat, and the CEO of Scatec, Terje Pilskog.
In January, Egypt awarded eight oil and gas exploration blocks to BP, Eni, Apex International, Energean and United Energy to invest a minimum of $250 million and drill at least 33 exploration wells spread within the Mediterranean, Western Desert and the Gulf of Suez blocks.
