Badawi revealed these plans while addressing a parliamentary committee convened to review the government’s program for the years 2024/2025 to 2026/2027.
His statements come following a recent comprehensive reshuffle within the cabinet, particularly in the economic sector, which appointed Badawi as the new Minister of Petroleum and Mineral Resources, succeeding Tarek El-Molla.
Badawi highlighted Egypt’s ambitious plan to drill 586 exploratory wells by 2030, with investments totaling $7.2 billion over the period.
“Boosting production is our top priority, given rising domestic consumption driven by infrastructure expansion, industrial growth, and energy-intensive projects,” Badawi emphasized.
Sector challenges
Presently, Egypt maintains 145 active oil and gas exploration and production agreements with 40 partner companies. Despite these partnerships, Badawi acknowledged sector challenges such as regional competition for investments and delays in implementing exploration activities.
To address these challenges, Badawi outlined several strategic initiatives. These include implementing new incentives, devising a global marketing strategy to attract fresh investments, and initiating international tenders through the Egypt Exploration and Production Gateway digital platform.
Additionally, the ministry is actively resolving outstanding payments owed to foreign partners to stimulate ongoing investments and bolster production. Coordination efforts with the Ministry of Electricity are underway to ensure sufficient fuel supplies for electricity generation, the minister added.
The repayment of arrears to foreign oil and gas companies operating in Egypt is a crucial commitment under the country’s $8 billion loan program with the International Monetary Fund (IMF). Prime Minister Mostafa Madbouly recently announced that Egypt disbursed $1.3 billion of these arrears in June, with plans to settle the remaining dues by August. Madbouly clarified that the recently repaid arrears account for approximately 20%-25% of the total outstanding amounts owed to the companies. Starting in March, the government began disbursing these arrears, totaling $1.5 billion.
Green projects
Badawi emphasized the petroleum sector’s shift towards green economy projects, targeting a reduction of 2.5 million tons of carbon emissions annually by 2030. Initiatives such as green ammonia and sustainable aviation fuel production are central to these efforts.
“We prioritize environmental considerations in all sector activities, aligning with Egypt’s sustainable development strategy focused on climate change and energy transition,” the minister highlighted.
He also disclosed ongoing projects aimed at increasing petrochemical manufacturing capacities to 170% of current levels. The ministry is exploring mechanisms to utilize excess production capacities, making them available to current and prospective investors. Collaboration with neighboring regional countries is also underway to optimize these capacities, solidifying Egypt’s role as a regional energy hub.
Furthermore, Badawi outlined plans to enhance Egypt’s petroleum product exports from refining and petrochemical projects, targeting a sector export value of $8.6 billion to reduce the trade deficit.
