Oil Ministry targets 160 new oil and gas wells with USD 7.2 bn in foreign investment

The Oil Ministry is targeting 160 oil and gas wells this fiscal year, backed by at least USD 7.2 bn in planned investment from foreign partners, with some 70% of the program earmarked for development wells to raise output from existing fields, Al Arabiya reports, citing an unnamed government official. The remaining 30% will be allocated to exploration.

Development drilling will focus on the Nile Delta, the Western Desert, the Gulf of Suez, and parts of the deepwater Mediterranean, while West Mediterranean concessions will anchor the exploration push. The ministry is targeting annual increases of 15% in oil production and 12% in gas output, beyond offsetting the natural decline at mature fields.

IN CONTEXT- The program is broader than the 101 exploration wells planned for calendar 2026, with the development-heavy split reflecting the more immediate push to restore domestic output and curb energy imports. The government has also cleared its arrears to foreign oil companies and introduced regular monthly payments to maintain foreign partners’ investment commitments.

Beyond fill-and-finish

Two new facilities worth a combined USD 116.6 mn are pushing the country’s pharma and diagnostics sector further into advanced manufacturing. Egyptian International Pharma Industries Company (Eipico) launched its new USD 100 mn Eipico 3 biologicals and biosimilar plant in 10th of Ramadan, according to an EGX disclosure (pdf). Spectrum Diagnostics also launched a USD 16.55 mn rapid-testing facility, according to a statement from the Investment Ministry.

Eipico says the new plant is the first in Egypt and the Middle East to carry out the full production cycle for biologics and biosimilars, from genetically modified cells to finished products, across oncology, blood disorders, hormonal conditions, and rheumatology. The facility is expected to focus on fill-and-finish operations in 2H 2026 before shifting to full local manufacturing in 2H 2027, with Eipico targeting EGP 450 mn in revenue during its first 12 months and EGP 1-1.5 bn annually at full capacity, according to a CI Capital note seen by EnterpriseAM.

SOUND SMART- Biologicals are medicines, like vaccines or insulin, made from living sources like animal cells, bacteria, yeast, or plants. Biosimilars are similar versions of the brand-name biologicals, produced as a cheaper generic alternative.

Spectrum’s facility will manufacture rapid diagnostic tests and laboratory equipment, creating a local supply chain for products that have largely been imported. The two project launches add momentum to Egypt’s wider push to localize higher-value pharma manufacturing, alongside projects such as Arab API’s USD 165 mn raw-materials plant.

Scatec’s grid link awarded

Three firms and one consortium have won the tender to build a 500 kV power transmission line connecting Norwegian developer Scatec’s 900 MW wind project to the national grid, at a cost of EGP 13 bn (USD 253.4 mn), according to an unnamed government official.

The winning bidders: Kuwait’s Kharafi National, Egyptian firms Wadi El Nil and El Gohary, and a consortium of Zaki Elsewedy and Arab African Construction. Construction is expected to take about a year once work begins, with the state-owned Egyptian Electricity Transmission Company (EETC) now negotiating contract terms ahead of board approval and signing, targeted for September.

Who’s paying: The Finance Ministry is financing the project directly under its strategic-projects budget line, rather than through EETC’s balance sheet or private capital.

This marks the second major Gulf of Suez transmission project announced in July. We reported last week that an Intelligent Globe Construction-led consortium had signed a separate EGP 20 bn agreement to build a 500 kV line linking Gulf of Suez renewables more broadly to the Hawamdeya substation south of Giza.

Why this matters: Egypt’s grid buildout is running behind its generation buildout. Former Investment Minister Hassan El Khatib previously said Egypt needs roughly USD 45 bn in distribution infrastructure to integrate the new solar and wind capacity coming online, against the EGP 26.3 bn EETC actually spent on grid upgrades last fiscal year, even with the EU’s EUR 690 mn grid financing package now helping close that gap.