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PM Reviews Efforts to Boost Petroleum Development in Upper Egypt

Cairo: Prime Minister Moustafa Madbouly reviewed a report submitted by Minister of Petroleum and Mineral Resources Karim Badawi on efforts by the Ministry of Petroleum and Mineral Resources to support and promote development in Upper Egypt.

According to State Information Service Egypt, the ministry is prioritizing the development of petroleum-sector activities in Upper Egypt as a key pillar of economic growth. This initiative is being spearheaded by the South Valley Egyptian Petroleum Holding Company (Ganope) and its subsidiaries, in collaboration with various petroleum-sector companies and relevant authorities. The efforts are part of the state's broader strategy to achieve balanced and sustainable development across Egypt's regions, thereby maximizing the use of available natural and economic resources.

The petroleum sector's plan for development in Upper Egypt is structured around three integrated tracks. The first track involves short-term measures to expand exploration and production activities in existing development areas, maximizing the use of available infrastructure. The second track focuses on accelerating exploration and prospecting in promising areas and ensuring the timely implementation of technical programs to facilitate new discoveries and expedite production. The third track aims to intensify marketing activities and attract new investments to open areas in the southern Western Desert, Eastern Desert, southern Gulf of Suez, and the Red Sea, alongside infrastructure development and refining projects.

The report also detailed intensified ministry efforts in Upper Egypt to expand exploration activities, attract investment, increase petroleum production, expand refining capacity, and broaden natural gas connections. These efforts are part of an integrated plan to achieve a tangible economic and developmental impact in the region.

Efforts in exploration, production, and investment attraction were highlighted, with a focus on opening new investment opportunities in the frontier areas of the southern Western Desert. Areas such as West Assiut and El-Dakhla are being targeted for their promising geological potential, with plans to develop comprehensive geological and geophysical databases to identify exploration opportunities and promote them to international oil companies.

Additionally, the ministry has signed six preliminary agreements to expand exploration activities in Upper Egypt, including areas like North Baraka, Red Sea, Kharit, South Baraka, Southeast Ras El Ush, and East Gabal El Zeit. These agreements are expected to significantly enhance the exploration map of southern Egypt, with exploration work scheduled to begin in 2027 and potential production estimated at between 5,000 and 11,000 barrels of crude oil per day by 2030.

Efforts to attract further investment through an updated investment map for the petroleum sector were also addressed, including 20 new investment opportunities in the southern Western Desert and Red Sea. The report further highlighted state efforts to expand natural gas connections in the governorates of the southern Nile Valley, aiming to improve services for citizens and support commercial and industrial activities.

The expansion of natural gas access is supported by a developed infrastructure comprising over 30 main pressure-reduction stations and more than 750 secondary distribution stations across Upper Egypt's governorates. This infrastructure is crucial for future expansion plans and higher connection rates, dependent on areas' readiness and available infrastructure.

As part of the national project "Decent Life," the petroleum sector has contributed to an ambitious plan to connect villages in Upper Egypt to the natural gas network. Natural gas networks have been extended to 374 villages in the first phase, with gas supplied to 328 of them, representing an implementation rate of approximately 88% of the targeted villages in the phase.

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