Egypt is pressing ahead with efforts to boost domestic oil and gas production, expand exploration activity and reduce reliance on imports, Prime Minister Moustafa Madbouli said, following a significant new offshore natural gas discovery in the Mediterranean.
During a visit on Sunday to the Egyptian offshore drilling rig Al-Qaher-II, Madbouli stressed that the government was working to localise advanced technology and deploy modern solutions to raise productivity in the petroleum and gas sectors, drawing on successful international and regional models.
The visit came after the rig successfully completed drilling operations at the Dennis West 1X well in the Temsah concession area off the coast of Port Said, resulting in a promising gas discovery estimated at around 2 trillion cubic feet of natural gas, in addition to roughly 130 million barrels of condensates.
Minister of Petroleum and Mineral Resources Karim Badawi accompanied the prime minister during the tour, alongside senior petroleum officials, and executives from Italy’s Eni and BP.
The government, the prime minister said, seeks to establish mechanisms to develop exploration, production and field development activities, to meet domestic demand and cut down imports.
Madbouli stressed that Egypt remains fully committed to settling all outstanding dues owed to foreign energy companies operating in the country, while intensifying efforts to attract fresh investment into the sector.
For his part, Petroleum Minister Karim Badawi said the new Dennis West 1x discovery was one of the key results of the ministry’s programme to repay arrears owed to foreign partners and introduce new incentives to accelerate investment in the oil and gas sector.
He added that all outstanding payments would be fully settled by the end of next month, in line with presidential directives.
He described the find as one of the most significant discoveries in recent years, supporting Egypt’s efforts to raise domestic output and lower the import bill.
Badawi noted that strong co-operation with global energy investors had already translated into major investment plans, including around $8 billion from Eni, $5 billion from BP and $2 billion from UAE-based Arcius, in addition to expanded investment by Shell in Mediterranean gas exploration and production.
He also said Apache was broadening its activities in Egypt’s Western Desert, with total investments exceeding $4 billion.
During the tour, Madbouli inspected the rig and its main control room, where he was briefed on its technical capabilities and role within Egypt’s offshore drilling fleet.
The Al Qaher-2 rig is operated by Modern Drilling Company (MDC) using advanced technologies.
