Oil Ministry is working overtime to ensure we see an uptick in natgas production

The Oil Ministry is lining up an exploration push built around two international tenders, revamped pricing terms, and faster arrear payments, a senior government source tells EnterpriseAM.

The clock starts now: The first international tender is set to launch next month, with the second following in 2H. The second round will lean on fresh seismic data from a survey kicking off next month, covering 18k km in the Mediterranean and 5.3k km in the Western Desert.

At the core is a rework of exploration and production pricing — a long-standing ask from international operators. The aim is to make undeveloped areas — including those in Upper Egypt — more attractive to investors.

Money talks: The government is preparing a schedule to clear dues owed to foreign energy players. After a USD 400 mn payment this month, the ministry plans to push another USD 350 mn by March, sending a clear signal to international oil companies.

The latest sign we’re not as heavily reliant on LNG imports as we once were: The Energos Eskimo floating storage and regasification unit has departed from Ain Sokhna — despite a multi-year contract — signaling confidence in our supplies as well as Israeli gas.

Egypt wants gas production back at 6.6 bcf/d, up from some 4.2 bcf/d now, to cut its import bill and lock in its regional hub ambitions.

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