Egypt resumes drilling at Al Baraka oil field after 2022 halt

Egypt has resumed drilling operations at the Al Baraka oil field in Upper Egypt for the first time since 2022 as it seeks to revive production and expand exploration activity in the region, Petroleum Minister Karim Badawy said during a visit to the site on Thursday.

Badawy reviewed maintenance work on producing wells and the arrival of the first drilling rig as part of a programme to rehabilitate existing wells and restore production at the field, which is operated by the Egyptian South Valley Petroleum Holding Company.

The minister said Upper Egypt remains a priority under the government’s strategy to expand oil and gas exploration and production, highlighting an ongoing seismic survey covering about 100,000 square kilometres to identify new investment opportunities.

He said the government plans to offer new exploration areas supported by incentives, including the R-Factor fiscal system and the consolidation of concession areas, to encourage additional upstream investment.

Badawy added that expanding petroleum activity in Upper Egypt would help increase domestic production, create jobs, and support regional economic development. He also reaffirmed the ministry’s support for Canadian energy company Mediterra’s expansion plans in Egypt following the settlement of outstanding dues owed to foreign partners.

Egyptian South Valley Petroleum Holding Company Chairman Samir Raslan said drilling resumed last month under a programme to rehabilitate seven production wells, drill two new wells, and evaluate five additional wells in cooperation with the Egypt Upstream Gateway (EUG).

He added that the company plans to award six new exploration blocks in southern Egypt, with expected investments ranging between $60 million and $70 million. The ongoing seismic survey is expected to increase the number of investment-ready exploration blocks in the region to more than 10.

During the visit, Badawy also inspected rehabilitation work at the Al Baraka-20 well and called for strict adherence to health and safety standards while accelerating drilling and maintenance programmes to maximise production.

Subediting: Y.Yasser