Egypt’s oil and gas sector is getting a boost with a commitment from US-based Apache to invest $1.4 bn in 2024. This was confirmed by CEO John Christmann in a meeting with Egyptian Prime Minister Mostafa Madbouly recently.
The US-based company specializes in exploring, developing, and producing hydrocarbons, including crude oil and natural gas.
In addition, Christmann said Apache has implemented modernization projects in Egypt to increase oil production by 10 percent to more than 150,000 barrels per day.
This will be done through a joint venture between Apache and Egyptian General Petroleum Company (EGPC). The partnership is also targeting to increase the productivity of existing oil wells.
Read: Davos: Egypt investments in oil, gas to reach $10 billion in 2023
Increased petroleum production
Earlier in May, Apache conveyed its intent to acquire new concession areas where it can perform its operations. Citing the availability of modern drilling methods and the potential of Egypt’s Western Desert region, the company’s main area of interest, Apache plans to boost production rates, which will be beneficial for both parties.
In the recently held discussion, Apache and Egyptian authorities reviewed the implementation of the company’s intensive drilling program for wells. The new wells have achieved its goal of boosting production rates, with current figures surpassing 145,000 barrels per day.
In December of last year, the US-based company previously announced the formal ratification of a modernized production-sharing contract (PSC) with the Egyptian Ministry of Petroleum and the Egyptian General Petroleum Company.
Apache stated that the updated PSC identifies Egypt as the focal point of APA Corporation’s investment portfolio. This highlights Egypt’s status as a rising energy hub in the region. APA Corporation is the holding company for Apache.
Egypt oil and gas aspirations
The investment bodes well for Egypt, which is planning to invest $1.8bn to drill new gas wells. This is part of Egypt’s offshore exploration plans in the Mediterranean Sea and the Nile Delta. The announcement was made by Minister of Petroleum and Mineral Resources Tarek El Molla.
El Molla said the offshore exploration program involves several international companies including Chevron, Eni, ExxonMobil, Shell and bp. It aims to drill 35 exploratory gas wells from now until July 2025.
Moreover, El Molla revealed, in an oil and gas conference earlier this year, said that the Egyptian petroleum sector and its international partners have discovered 284 new fields over the past five years.
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