Tarek El Molla, the Minister of Petroleum and Mineral Resources of Egypt, unveiled his country’s ambitious plan to invest $1.8 billion in offshore exploration for new gas wells in the Mediterranean Sea and the Nile Delta. Under this program, Egypt aims to collaborate with major international companies, including Eni, Chevron, ExxonMobil, Shell, and BP, to drill a total of 35 exploratory gas wells between now and July 2025. The plan entails drilling 21 wells in the fiscal year 2023/2024 and 14 wells in the fiscal year 2024/2025, with a combined investment of $1.8 billion.
During the 8th OPEC International Seminar in Vienna, Austria, El Molla highlighted Egypt’s ongoing efforts to develop several offshore fields in the Mediterranean Sea, Nile Delta, and Western Desert in order to bolster the country’s production capacity. Over the past five years, the Egyptian petroleum sector, in partnership with international companies, has actively explored new oil and gas resources. This endeavor has resulted in the discovery of 284 new fields, including 217 oil wells and 67 gas wells, contributing a substantial 1.32 billion barrels of oil equivalent (BOE) to Egypt’s reserves.
El Molla emphasized that Egypt’s current oil and gas production effectively meets most of the country’s energy demands. Fossil fuels currently account for 93% of Egypt’s primary energy sources, with approximately 75% of the country’s consumption being supplied domestically and the remaining 25% imported. In light of the government’s commitment to clean energy, El Molla revealed that Egypt aims to expedite the transition in its electricity sector, with renewable energy capacity projected to reach 42% of the country’s power capacity by 2035.
When discussing the oil market outlook for the forthcoming year, Minister El Molla conveyed his unwavering confidence in OPEC’s capacity to adapt swiftly to market fluctuations and the ever-evolving dynamics of supply and demand. With OPEC’s vigilant monitoring and strategic decision-making, he firmly believes that the organization will effectively address any challenges that may arise within the oil industry. In terms of price projections, the minister expects a moderate range of $70 to $80 per barrel during the upcoming period.