Minister of Petroleum: Lauching New Investment Incentives to Encourage Oil and Gas Production Increase
H.E Eng Karim Badawi, the Minister of Petroleum and Mineral Resources, has announced a new set of incentives aimed to increase the production of oil and gas . This considered as a primary goal with our partners in the fields of exploration and production. The minister emphasized that this step reflects the petroleum sector’s commitment to improve the investment climate and encouraging Partners to direct more investments, ultimately leading to increased production of gas and crude oil. As the Investments are considered the cornerstone of supporting and boosting petroleum production rates.
The Minister added in an expanded meeting with the partners in the petroleum production that these incentives include new mechanisms that are associated with achieving an increase in production beyond the current rates, as well as an increase in exploratory, developmental drilling activities and production operations. This will result in allocating the revenue generated from the increased production to settle part of the Petroleum sector,s partners dues and to provide additional gas and oil to narrow the gap between production and local consumption. Moreover, it will contribute to reducing the monthly import bill, thereby providing more financial resources for both parties, which will help enhance investment in exploration and production activities and generate revenue for the government, as well as contributing to national security by providing more petroleum supplies from Egyptian production.
The partners expressed their praise for the initiative as a step to boost their efforts in intensyfying their activities, hence increasing production.
Eng. Sameh Sabry, Senior Vice President Wintershall Dea declared that the initiative is good and reflects how the investment decision should be taken, and comprehend the challenges facing the petroleum industry, on top of which adding new reserves, new production, maintaining the production levels, and confronting the natural wells depletion.
Mrs. Iman Hill, Vaalco Energy Egypt Country Manager, said that the initiative is great, presented transparently as a step to confront the challenges we all face, adding that executing it is the challenge we should conquer.
Mrs. Dalia ElGabry, Shell Egypt General Manager clarified that the initiative is brave, but it requires application and consistency , mentioning that fruitful cooperation is the foundation for achieving win win benefits, especially that it needs patience and commitment in application in light of bolstering confidence as offered in the initiative.
Nicolas Katcharov, Energen Regional Manager asserted the importance of consistency of implementation, as the initiative is very positive.
New Bid Round For Natural Gas Exploration at 12 Blocks in the Mediterranean and Nile Delta
In this context, the Ministry of Petroleum and Mineral Resources announced that the Egyptian Natural Gas Holding Company (EGAS) has launched a new international 2024 bid round for the exploration and exploitation of natural gas and crude oil in 12 blocks in the Mediterranean and the Nile Delta. This includes 10 offshore blocks and two onshore blocks, through Egypt Upstream Gateway (EUG) via the following link: https://eug.petroleum.gov.eg.
This bid round is part of the Ministry of Petroleum and Mineral Resources’ efforts to attract new investments to Egypt, in line with its strategy to exploit promising opportunities in the field of gas and oil exploration, especially in the Mediterranean Sea, which holds significant potential as a promising basin for natural gas.
Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, explained that the launch of this bid round for natural gas exploration supports Egypt’s direction toward intensifying exploration activities in the Mediterranean, especially in light of the growing interest in achieving new discoveries and increasing natural gas production, which has become a crucial element in both the local and global energy mix.
Moreover, he confirmed that this is the eighth bid round of its kind to be launched using the latest digital tools through Egypt Upstream Gateway (EUG), which the ministry launched at the beginning of 2021.It provides seamless access to the essential and all updated technical data related to bid rounds, speeding up the process of evaluating investment opportunities and submitting bids.
New Investment Opportunities in Exploration, and Field Development
In this regard, Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, announced the availability of additional investment opportunities in exploration, and field development, in open areas. These opportunities are being offered through the Egypt Upstream Gateway (EUG), This platform allows interested companies to access all available geological and production data and submit proposals directly, thereby enhancing transparency and efficiency in the bidding process and encouraging investment
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