Cairo: Prime Minister Mostafa Madbouli stressed the need for the government to continue efforts to secure a safe and sufficient strategic reserve of petroleum products to ensure market stability and meet the needs of citizens and productive sectors amid rapid regional developments.
According to State Information Service Egypt, the remarks came during a meeting on Tuesday with Minister of Petroleum and Mineral Resources Karim Badawi to review key developments in the sector and ongoing projects. Badawi stated that US-based Apache, in cooperation with the Egyptian General Petroleum Corporation, has made a new natural gas discovery in the Western Desert after drilling the exploratory well (SKAL-1X) in the South Kalabsha area. Initial tests showed production rates of around 26 million cubic feet of gas per day and 2,700 barrels of condensates.
He noted that the discovery enhances investment feasibility and helps reduce costs due to its proximity to existing production facilities, accelerating its integration into the production map and offsetting natural declines in mature fields. On exploration activities, the minister pointed to the arrival of the drillship 'Valaris DS-12' in Egyptian waters to launch a new phase of Mediterranean gas drilling, as part of a four-well program for BP and Arkios Energy, a joint venture between BP and the UAE's ADNOC.
Badawi said the vessel will begin drilling one production well and one exploratory well for BP, followed by two exploratory wells for Arkios Energy, reflecting growing confidence among major global investors in Egypt's petroleum sector. He added that the ministry, in cooperation with partners, is implementing an ambitious 2026 plan to drill more than 100 exploratory wells, alongside development wells at existing fields, to maximize resource utilization and boost production capacity through new discoveries, paving the way for sustained growth over the next five years.
The minister also highlighted efforts to settle dues owed to foreign partners while maintaining regular monthly payments, in line with directives by President Abdel Fattah El-Sisi, noting that outstanding dues have been reduced from $6.1 billion in June 2024 to about $1.3 billion currently, with plans to fully settle them by June 2026. He said these measures, alongside incentive policies and payment regularity, have helped attract major investments, including around $8 billion from Italy's Eni, $5 billion from BP, more than $4 billion from Apache, and about $2 billion from UAE-based Arkios.
On energy rationalization, Badawi reviewed proposals aimed at reducing petroleum consumption across sectors to cut import bills and ease pressure on foreign currency resources, while maintaining development needs and public services. He also outlined the results of inspection campaigns carried out by the Egyptian General Petroleum Corporation during the third week of March, covering 30 fuel stations and depots in eight governorates, which uncovered violations including manipulation of gasoline and diesel stocks totaling about 13,000 liters in Sohag, as well as irregularities in pump calibration and storage practices in Port Said, Aswan, and Qalyubia. Legal action has been taken against violators, he said.