The Oil Ministry is eying 14 Mediterranean exploration wells in USD 1 bn+ drilling push this year

The Oil Ministry is targeting its largest Mediterranean exploration drilling program yet in 2026, including 14 new wells and more than USD 1 bn in expected investment, according to a government document seen by EnterpriseAM. The Med push is part of a wider 2026 exploration program targeting a total 101 wells across the country’s oil and gas blocks, with a total expected investment of USD 1.3 bn — spanning 67 wells in the Western Desert, nine in the Gulf of Suez, six in the Delta, and five in the Eastern Desert.

The Med prize: If the Mediterranean discoveries are successful, most are expected to enter production within two to three years, potentially lifting Med gas output to around 2 bcf / d from 1.5 bcf / d. That could cut Egypt’s import bill by around USD 500 mn a month.

Who’s drilling where? Shell is expected to drill four wells with USD 312 mn in investment across Merneith, Philox, and West Mina. Eni is targeting four wells with USD 184 mn earmarked for Denise W-2, Nidoco North, Southwest Nour-1, and Zohr. BP is planning three wells with USD 218 mn in investment, while Arcius is targeting one well with USD 160 mn — the document lists their activity across Fayoum and Cairo blocks. ExxonMobil and Chevron are each planning one well, with planned investments of USD 120 mn and USD 114 mn respectively, in Nargis and Cairo blocks.

Why now: The Oil Ministry fully cleared its USD 6.1 bn arrear backlog to international oil companies earlier this month and has also been offering better terms to reverse the decline in domestic gas output, including updated pricing and production incentives.

MEANWHILE- The Egyptian National Petroleum for Exploration and Development Company (Enpedco) is investing USD 12 mn to explore for oil and gas in western Fayoum, the Arabic press reports, citing an unnamed government official. The company plans to drill five exploratory wells across the 3k sq km concession, which it recently secured from the Egyptian General Petroleum Corporation (EGPC) under an extendable three-and-a-half-year agreement.

Why it matters: The updated strategy expands last year’s USD 5.7 bn roadmap from 480 to 580 wells through 2030, heavily prioritizing the Mediterranean to reverse an eight-year domestic production low recorded in 2024, which has forced the government to lean harder on LNG and pipeline imports to cover demand. The new wells could help restore export capacity in the long-term, but the timeline matters — even successful discoveries would only start contributing meaningfully after development work, keeping import pressure high in the near term.