Egypt Opens Bidding for 12 New Oil and Gas Exploration Blocks

The Egyptian Natural Gas Holding Company (EGAS), a state-owned entity, has recently launched an international bidding round for the exploration and development of natural gas and crude oil across 12 blocks. This bid includes ten offshore blocks and two onshore blocks situated in the Mediterranean Sea and the Nile Delta. The goal of this bidding process is to attract new investments into Egypt’s oil and gas sector, aligning with the Ministry of Petroleum and Mineral Resources’ broader strategy to tap into the region's lucrative energy opportunities, particularly within the gas-rich Mediterranean basin.

Minister of Petroleum and Mineral Resources, Karim Badawi, emphasized the critical importance of expanding exploration and discovery efforts. He noted that these efforts are essential for boosting natural gas production, which is becoming increasingly pivotal in both local and global energy markets. The bidding process is open to interested parties until February 25, 2025, providing ample time for companies to prepare and submit their proposals for these exploration blocks.

In a noteworthy development on the exploration front, Khalda Petroleum Company, which operates in the Kalabsha Development Area of the Egyptian Western Desert, has announced a significant new oil discovery. The discovery was made at the West Fewebs-1 well, which has demonstrated impressive output, yielding 7,165 barrels of oil per day along with 23 million cubic feet of associated gas from a 270-foot section of Paleozoic sands. Electrical logs from the well have confirmed the presence of hydrocarbons in the Paleozoic layer, with a total net thickness of 462 feet, indicating a substantial potential for further exploration and production in the area.

These announcements come in the wake of a strategic vision articulated by Egyptian Prime Minister Mostafa Madbouly. During a press conference on August 21, Madbouly outlined the country’s ambitious plan to restore its oil and gas production to previous levels by 2025. He highlighted the intention to collaborate closely with international partners to boost production capacities. The Prime Minister emphasized that there is a clear and actionable plan to not only return to previous production levels but also to achieve significant increases in output in the near future.

The recent activities reflect a broader push by Egypt to revitalize its oil and gas sector and attract global investment. The government’s strategy involves both opening new areas for exploration and making substantial advancements in existing fields. The latest bidding round is a crucial part of this strategy, aimed at leveraging international expertise and capital to explore and exploit the rich hydrocarbon resources in the Mediterranean and Nile Delta regions.

Overall, the initiatives undertaken by EGAS and the significant oil discovery by Khalda Petroleum are steps towards enhancing Egypt’s role as a key player in the global energy market. By inviting international bids and making new discoveries, Egypt is positioning itself to capitalize on its substantial energy resources while striving to meet its production goals and contribute to the stability of global energy supplies.