On 4th May 2026, Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, held an expanded meeting with representatives of investment partners and senior Petroleum Sector officials. He emphasized that Egypt prioritizes the fulfillment of its financial obligations, highlighting the executive steps that successfully reduced the partners' outstanding arrears from $6.1 billion in June 2024 to $714 million as of last April, targeting to fully settle these arrears by the end of this June. The Minister asked partners to move forward with the five-year plan to maximize domestic production and reduce reliance on imports. He pointed out that the Ministry is working on providing investment incentives and implementing modern business models in collaboration with service and technology companies to support horizontal drilling and hydraulic fracturing, aiming for a significant increase in production. These models include Integrated Project Management (IPM) and Lump Sum Turnkey (LSTK) contracts, with a focus on enhancing data quality and seismic surveys to support investment decisions and de-risk operations.
He also highlighted the adoption of investment-stimulating models to accelerate the exploration of gas and oil in promising untapped areas that are far from existing infrastructure, such as the Western Mediterranean, the Red Sea, and the southwestern part of the Western Desert.
Furthermore, the minister expressed his appreciation and gratitude to partners for their strategic cooperation and commitment, affirming the state's dedication to reducing the time required to obtain approvals and complete the necessary procedures for projects. He also praised the partners' role in supporting the state's efforts to secure local energy needs, as well as their contribution to the success of the "EGYPS 2026" conference, which was delivered in a distinguished manner despite the geopolitical challenges facing the region.
Representatives of international companies asserted that Egypt is witnessing a tangible shift in management mindset, reflected in the accelerated pace of decision-making and the resolution of challenges. They praised the level of transparency in addressing obstacles and solutions, emphasizing that flexible contractual models, along with incentives for horizontal drilling and fracking, have enhanced the attractiveness and global competitiveness of Egypt's concession areas. Partners also expressed their interest in contributing to the energy transition, particularly regarding the integration of natural gas security with the expansion of renewable energy, supporting the state's goal to increase the share of renewables in the energy mix by 2028.
In essence, the minister concluded the meeting by emphasizing that safety is a top priority across all work sites, stressing the importance of adhering to the highest standards of occupational health and safety. He also referred to activating a direct and continuous institutional coordination mechanism with the Egyptian General Petroleum Corporation to simplify procedures and proactively address technical and administrative challenges, thereby supporting the sustainability of achieved successes and enhancing Egypt's position as a regional hub and an attractive destination for investment in the energy sector.
