BP targets 1 tcf in Mediterranean gas exploration as first phase of USD 1.5 bn investment plan

Good morning, friends. Ambition is meeting execution in today’s issue across three stories in renewables, corporate governance, and tourism.

Starting with Obelisk: Scatec has brought its 1.1 GW Obelisk solar-and-battery project in Nagaa Hammadi fully online. It is expected to generate 3 TWh of clean electricity annually under a 25-year USD-denominated offtake agreement with EETC.

MEANWHILE- The General Authority for Investment and Freezones and the Financial Regulatory Authority have voided PHG’s upcoming general assembly after an audit uncovered “serious financial and administrative violations.”

And new tourism targets are here: The government wants to more than double annual revenue to USD 38 bn by 2030, alongside its target of bringing in 30 mn visitors. Private investors are expected to carry virtually all of the EGP 118.5 bn investment bill for this FY.

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Every session on stage answers one question: “So, what do I actually do about it?”

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Three wells, one target

BP is chasing a 1 tcf prize in the Mediterranean: BP’s 2026 exploration campaign is targeting around 1 tcf of potential gas reserves, a source familiar with the matter tells EnterpriseAM. The drilling marks the first tranche of a USD 1.5 bn, five-year investment plan agreed with the government. If the wells yield commercial discoveries and enter production, they could lift domestic gas output and reduce reliance on imports, according to the source.

REMEMBER- We exclusively reported in June that BP was planning three Mediterranean wells with USD 218 mn in investment as part of a wider 2026 program targeting 14 wells and more than USD 1 bn across the basin. The broader campaign is being carried out through agreements with foreign players, after the government cleared its USD 6.1 bn arrears to international oil companies, with the aim of lifting domestic reserves and production.

Four sizes for the tax tab

The government’s tax-backed sukuk offering will come in four denominations — EGP 10k, EGP 100k, EGP 1 mn, and EGP 10 mn, according to official data seen by EnterpriseAM. The Finance Ministry will set an overall ceiling for the value of the instruments issued, although the document does not disclose its size.

The ministry plans to stagger the rollout through annual issuances to bring immediate liquidity into the Treasury without placing too much pressure on future tax receipts. Taxpayers would earn a tax-exempt return and could use the instruments to settle their tax liabilities after one year from subscription.

REMEMBER- The denomination ladder adds to the mechanism unveiled earlier this week to pull future tax receipts forward and tap taxpayers as a more stable and potentially cheaper funding pool. Each issuance will carry a fixed, tax-exempt return, while the governing rules are due within three weeks. Individuals, private companies, and public-sector businesses will be eligible to participate, and the instruments will not be transferable.

One rate for the rails

The Finance Ministry has standardized VAT on imported monorail and high-speed rail rolling stock at 5%, according to a government document seen by EnterpriseAM. The treatment applies to self-propelled metro rail cars and similar rolling stock used for mass passenger transport.

The clarification settles inconsistent treatment at Alexandria Customs. The authority had charged the baseline 14% VAT on 24 customs declarations covering imported monorail trains while applying the lower 5% to eight declarations covering six Desiro and two Velaro high-speed trains — both from Siemens. The National Authority for Tunnels (NAT) asked the Egyptian Tax Authority to settle the discrepancy, arguing that the imports fell under the same category of rolling stock.

REMEMBER- The first phase of the East Cairo-New Capital monorail is already running, while trial operations on the first high-speed electric rail line are expected to begin in September or October. Also, NAT is already receiving support for a stretched balance sheet, with the Finance Ministry funneling around EGP 19.3 bn into the authority this FY after debt tied partly to major infrastructure projects, including the monorail and high-speed rail network, piled up.

Data point

40.2 GW — that’s the new peak reached by the country’s national electricity grid yesterday, 12 August, exceeding Tuesday’s 40 GW record and reaching the government’s own projections, according to a statement from the Electricity Ministry. The new record is also 400 MW higher than the previous record-setting 39.8 GW peak seen during last summer’s heat.

Circle your calendar

Cityscape Egypt Summit 2026 lands in the New Capital on 7 September, bringing together government officials, developers, investors, and financial institutions to discuss the property market’s outlook and investment prospects. The summit will set the stage for the 15th Cityscape Egypt exhibition, running from 30 September to 3 October at the Egypt International Exhibition Center, with more than 80 developers showcasing over 1k projects.

PSA-

WEATHER- It’s below 40, but still hot in Cairo today, with a high of 37°C and a low of 26°C, according to our favorite weather app.

It’s breezier in Alexandria, with a high of 32°C and a low of 25°C.

And over the weekend, expect to see the same warm conditions in the capital (with a high of 37°C) and the cooler conditions for our friends on the Mediterranean (a high of 32°C).

The big story abroad

In the absence of a major update on the regional war, several stories from the business press took precedence on the front pages. Here are the most notable headlines:

US inflation in July was moderate: The consumer price index indicated that US inflation continued to ease last month, yet energy prices are still riding high since the US-Iran war erupted. The indicator rose 0.1% m-o-m and 3.4% annually, while core CPI (excluding food and energy) rose 2.5% over the year, potentially quelling the urgency of an imminent rate hike.

Bank of America has its eyes on the booming Indian economy, agreeing to acquire as much as 49.9% of Jio Financial Services’ lending unit for about USD 1.9 bn. The second-largest US lender will execute the investment through an allotment of shares and warrants in the Mumbai-based company, which is one of the region's fastest-growing financial firms.

Putting a price on the Truth (Social): US President Donald Trump has been hit with a lawsuit after his social media company Trump Media & Technology Group offered users a paid subscription that provides faster access to his Truth Social feed, through which he frequently signals policy changes. The service, called Truth API, charges a USD 100k monthly subscription and has been blasted by the plaintiffs as “profoundly corrupt” in a filing to a Manhattan federal court.