Global oil company BP has plans to drill four new natural gas exploration wells in Egypt in the last quarter of 2023, Egypt’s Ministry of Petroleum announced in a statement on Tuesday.
The ministry further noted that BP, along with its partners, is set to invest approximately $3.5 billion in the exploration and development of natural gas resources in Egypt over the next three years.
These investments have the potential to double if the new exploration efforts are successful.
Egypt, which has been facing a rising demand for natural gas, saw a 9% year-over-year decline in its gas production between January and May, and a 12% drop compared to the same period in 2021. The country is also grappling with power outages caused by increased demand for cooling due to heatwaves.
In light of these challenges, Egypt aims to establish itself as a regional hub for natural gas supply. The country is already selling its natural gas and re-exporting Israeli gas in the form of liquefied natural gas (LNG) to the Middle East, Africa, and Europe.
Egypt’s President Abdel Fattah Al-Sisi met with Bernard Looney, the CEO of BP, and addressed the bilateral cooperation in the energy sector.
Al-Sisi expressed his appreciation for the growing activities and investments of BP in Egypt, which contribute to the exploration and production of oil and gas.
The president also underlined the importance of the participation of international companies and the private sector in the fields of oil, gas, and renewable energy.
He also highlighted Egypt’s objectives to enhance its cooperation with BP, especially in the field of reducing emissions and energy transition, as well as green hydrogen production.
