Egypt revives energy investments as partner arrears fall

Egypt’s energy sector is regaining momentum after efforts to resolve partner arrears and introduce investment incentives, Minister of Petroleum Karim Badawi said at the American Chamber of Commerce on Wednesday. Partner arrears have fallen from $6.1 billion in June 2024 to $1.3 billion, with full settlement expected by the end of June.

Badawi said incentives have revitalised exploration and production, including lower barrel costs, new contracts, and investment opportunities near existing fields. Apache has increased gas output in the Western Desert. Egypt aims to diversify its energy mix, raise renewables to 42 per cent by 2030, develop nuclear power, and reduce reliance on natural gas.

The minister highlighted regional cooperation with Cyprus for gas transport and stressed advanced technologies such as seismic surveys, horizontal drilling, and hydraulic fracturing. LNG import infrastructure ensures a stable supply for electricity and industry.

International companies confirmed expansion: Shell advanced the West Delta Deep Marine project and conducted Egypt’s first 4D seismic survey; BP and Eni announced a new Mediterranean gas discovery; Apache invested $5 billion over five years in the Western Desert; Chevron is drilling at the Narges field and expanding into new areas, leveraging Egyptian infrastructure for Cypriot gas.

Attribution: Amwal Al Ghad English