A new USD 600 mn gas treatment facility in the works: The Oil Ministry has a USD 600 mn natural gas treatment plant in the pipeline, with plans to have it running by mid-2025, a government source told Al Arabiya.

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The details: The plant is located in the Western Desert’s Meleiha concession, which is operated by Agiba — a JV between energy giant Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC). The facility’s production will feed into the national grid.

Who’s developing the facility? State-owned oil and gas contractor Petrojet is acting as the project’s main contractor, working together with global oilfield services giant Schlumberger on engineering, design, and procurement for the treatment plant.

Timeline: The source said construction on the project should wrap up in 1Q 2025 and will be followed by a pilot run. If all goes well, the facility is expected to be fully operational by mid-2025.

The Western Desert already houses some older gas treatment facilities built in recent years to receive gas extracted from concession fields in the area, according to the source. The new plant will add to this existing capacity, and is designed to accommodate additional gas volumes in the coming years.

Agiba has big targets for this FY: The joint venture plans to invest about USD 500 mn this fiscal year, with a plan to up its daily production capacity to 30k barrels of crude oil and 119 mn cf of gas.

Part of a bigger plan: The Oil Ministry is looking to drill 110 exploratory wells with total investments of USD 1.2 bn in the current fiscal year, as part of a broader push to drill 586 exploratory wells with investments of USD 7.2 bn by 2030.

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