{"id":683980,"date":"2026-03-03T00:00:00","date_gmt":"2026-03-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=683980"},"modified":"2026-03-03T09:02:11","modified_gmt":"2026-03-03T09:02:11","slug":"new-drilling-incentives-aim-to-bridge-the-output-gap","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/","title":{"rendered":"New drilling incentives aim to bridge the output gap"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Good mornin<\/strong><strong>g, wonderful people. <\/strong>Our first report as we start day four of this regional war is from the Department of Histrionics: The United States wants its citizens to pull out of Egypt. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Wait, Enterprise, out of Egypt? <\/strong>Yep, Egypt. A <a target=\"_blank\" href=\"https:\/\/x.com\/AsstSecStateCA\/status\/2028588420403241021?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E2028588420403241021%7Ctwgr%5Ed38476165de57b4177b27eacd6eb21c793ee1129%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2026-03-02%2Fstate-department-tells-americans-to-leave-middle-east-for-safety\" style=\"\" rel=\"noopener\">post on the X account<\/a> of Assistant Secretary for Consular Affairs Mora Namdar is urging American citizens to pull out now from more than a dozen countries in MENA, including Egypt, the UAE, Saudi Arabia, Jordan, Qatar, and Oman, citing \u201cserious safety risks.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>So, what\u2019s the latest on the war on this cold March morning?<\/strong> Well, nothing\u2019s up in Omm El Donia, for starters. The same, unfortunately, cannot be said of the Gulf, where <strong>Qatar has turned off LNG production<\/strong> (a risk to which policymakers in Egypt will be paying careful attention) and two Iranian drones <strong>targeted Saudi Arabia\u2019s Ras Tanura refinery<\/strong>, which <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-02\/saudi-arabia-s-ras-tanura-refinery-shuts-down-after-drone-attack\" style=\"\" rel=\"noopener\">shut<\/a><a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-02\/saudi-arabia-s-ras-tanura-refinery-shuts-down-after-drone-attack\" style=\"\" rel=\"noopener\">down<\/a> after debris from the drones\u2019 interception fell near the facility, causing a fire. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The US embassies in Saudi Arabia and Kuwait have been hit by Iranian drones<\/strong>, but no casualties have been reported. Markets in Asia opened lower on the news. Iran, meanwhile, \u201cofficially\u201d said it has closed the Strait of Hormuz \u2014 and <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-03-02\/rubio-says-us-military-s-hardest-hits-on-iran-are-yet-to-come\" style=\"\" rel=\"noopener\">the United States is warning that the \u201chardest hits are yet to come,\u201d<\/a> promising that the \u201cnext phase will be even more punishing on Iran than it is right now.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>***<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a target=\"_blank\" href=\"https:\/\/omny.fm\/shows\/enterpriseam-egypt\" style=\"\" rel=\"noopener\">WISH THIS MORNING\u2019S ISSUE was a podcast? We\u2019ve got you. Tap or click here<\/a><\/strong> to listen to Morning Drive, a 10-minute version of today\u2019s issue crafted for you to enjoy with your morning coffee, while getting the kids ready for school, <strong>or while stomping around the house wondering where the [redacted] you left your [redacted] reading glasses.<\/strong><strong>***<\/strong><\/p>\n<p class=\"tag-border-left\">Watch this space<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <a id=\"wwtt1\"><\/a> <strong>ENERGY \u2014 The Oil Ministry will adopt a new fiscal regime for <\/strong><strong>upstream partners<\/strong>, moving toward incentive-based contracts to encourage the use of expensive unconventional drilling technologies, according to a ministry <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/pfbid0QkDBYauyVaqFtfGQx5MBsYKDA3yNWx8Uyv1Qiv1UMK9F1Ngkf4kaU3sZT7T1coUzl\" style=\"\" rel=\"noopener\">statement<\/a>, citing Oil Minister Karim Badawi in a meeting with industry players. The next five years will focus on scaling oil and gas output through horizontal drilling and hydraulic fracturing \u2014 methods common in US shale, but underutilized in Egypt\u2019s mature basins.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why it matters:<\/strong> For years, the technical limits of conventional vertical wells have led to declines in Egypt\u2019s aging reservoirs. However, the capex required for fracking and horizontal rigs didn\u2019t make sense under old cost-recovery models. By introducing incentives \u2014 likely better profitsharing or revised gas prices \u2014 the ministry is trying to make Egypt\u2019s difficult barrels economically viable again for operators.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>INVESTMENT WATCH \u2014 The Madbouly government <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/1495566155947133?ref=embed_post\" style=\"\" rel=\"noopener\">unveiled<\/a><\/strong> <strong> a nine-step plan to <\/strong><strong>boost private investment<\/strong>, which includes supporting startups, proactively targeting high-value-added productive investments, maximizing the role of the Sovereign Fund of Egypt, boosting the capital market through legislative amendments and more state IPO offerings, and launching specialized financial tools to support priority sectors. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why this matters: <\/strong>The state is looking to have private investments make up 70% of total investments by 2030. <\/p>\n<div class=\"row\">\n<div class=\"col-md-12 subscribe-box-panel\">\n<div class=\"\">\n<div class=\"title\">\n<h4 class=\"fw-lighter mb-10\">   Get <b style=\"font-weight: 700\">Enterprise<\/b> daily   <\/h4>\n<\/p><\/div>\n<p class=\"mb-10\">The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n<p>  <a target=\"_blank\" href=\"\/egypt\/en\/user\/NewsLetters\" type=\"button \" class=\"btn-green px-3 d-flex align-items-center\" rel=\"noopener\">Subscribe here<\/a>  <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>** DID YOU KNOW that we cover <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\" style=\"\" rel=\"noopener\">Saudi Arabia<\/a><\/strong><strong>, the <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\" style=\"\" rel=\"noopener\">UAE<\/a><\/strong><strong> and the <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/mena-india\/en\" style=\"\" rel=\"noopener\">MENA-India<\/a><\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/mena-india\/en\" style=\"\" rel=\"noopener\">Corridor<\/a><\/strong><strong>?<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>** Were you forwarded this email?<\/strong> <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/user\/news-letters\" style=\"\" rel=\"noopener\">Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Happening today<\/p>\n<p style=\"padding-top:0pt;margin:0;padding-left:0;padding-bottom:12pt;line-height:1.15;orphans:2;widows:2;text-align:left;padding-right:0\"><a id=\"wwtt2\"><\/a> <strong>The private sector is eagerly awaiting S&P Global\u2019s Purchasing Managers\u2019 Index report <\/strong><strong>for February, due out later this morning<\/strong>, amid hopes that non-oil activity will move back up into the green after dipping to 49.8 in January. The country\u2019s headline rate sits just below the all-important 50.0 mark is the threshold separating contraction from growth \u2014 a barrier the country has only passed four times since November 2020.<\/p>\n<p class=\"tag-border-left\">Data point<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a id=\"wwtt3\"><\/a> <strong>USD 29.5 bn \u2014 that\u2019s Egypt\u2019s net foreign assets at the end of <\/strong><strong>January<\/strong>, rising USD 4.0 bn in a single month to record an all-time high, according to <a target=\"_blank\" href=\"https:\/\/ent.news\/2026\/3\/126.pdf\" style=\"\" rel=\"noopener\">data (pdf)<\/a> from the Central Bank of Egypt. January\u2019s increase was driven by foreign liabilities declining at both the central bank and commercial banks, in addition to foreign assets growing by USD 1.7 bn at commercial banks and remaining broadly stable at the CBE.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><a href=\"https:\/\/omny.fm\/shows\/enterpriseam-egypt\" target=\"_blank\" rel=\"noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2025\/11\/780.jpg?ssl=1\"\/><\/a> <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">PSA-<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>WEATHER- It\u2019s set to be a sunny but cool day in Cairo today<\/strong>, with a high of 21\u00b0C and a low of 10\u00b0C, according to our favorite weather app.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Scattered clouds are forecast for Alexandria<\/strong>, with a high of 20\u00b0C and a low of 11\u00b0C.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The big story abroad <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The world\u2019s front pages are all about the <\/strong><strong>widening regional war <\/strong>for the third day running. Two updates are topping headlines this morning:<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- US President Donald Trump vowed to do \u201cwhatever it takes\u201d in Iran<\/strong>, saying that US-Israeli attacks on the country could go on for over a month. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Iran officially closed the Strait of Hormuz<\/strong>, threatening to fire at any ship trying to pass through \u2014 effectively halting 20% of the world\u2019s oil supply.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>THE HOMETOWN ANGLE- <\/strong>We dive into what this all means for us at home in the news well, below. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">t<img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/ads\/imgs\/239.jpg?ssl=1\"\/><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>*** It\u2019s Going Green day \u2014 your weekly briefing of all things green in Egypt:<\/strong> EnterpriseAM\u2019s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices, and how you can make your business greener, whatever the sector.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>In today\u2019s issue: <\/strong>We take a look at how Egypt\u2019s construction boom is creating a waste problem \u2014 but also a window.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good morning, wonderful people. Our first report as we start day four of this regional war is from the Department of Histrionics: The United States wants its citizens to pull out of Egypt. Wait, Enterprise, out of Egypt? Yep, Egypt. A post on the X account of Assistant Secretary for Consular Affairs Mora Namdar is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":683981,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7204],"tags":[93,72,91,371,74],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-683980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-energy","tag-enterpriseam","tag-oil-and-gas","tag-oil-ministry","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"94df3325-2144-4d34-ad66-326989d136f2","order":"2","is_powered_by":true,"story_type":"4","photo_url":"https:\/\/ent.news\/2026\/3\/146.jpg","photo_position":"above","homepage_title":"","full_issue_title":"New drilling incentives aim to bridge the output gap","related_issue":[683978],"teaser":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New drilling incentives aim to bridge the output gap - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New drilling incentives aim to bridge the output gap\" \/>\n<meta property=\"og:description\" content=\"Good morning, wonderful people. Our first report as we start day four of this regional war is from the Department of Histrionics: The United States wants its citizens to pull out of Egypt. Wait, Enterprise, out of Egypt? Yep, Egypt. A post on the X account of Assistant Secretary for Consular Affairs Mora Namdar is [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-03T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-03T09:02:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2026\/3\/146.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"New drilling incentives aim to bridge the output gap\",\"datePublished\":\"2026-03-03T00:00:00+00:00\",\"dateModified\":\"2026-03-03T09:02:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\"},\"wordCount\":942,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2026\/3\/146.jpg?fit=%2C&ssl=1\",\"keywords\":[\"energy\",\"EnterpriseAM\",\"oil and gas\",\"Oil Ministry\",\"What We're Tracking Today\"],\"articleSection\":[\"What We're Tracking Today\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/\",\"name\":\"New drilling incentives aim to bridge the output gap - 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EnterpriseAM Egypt","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/","og_locale":"en_US","og_type":"article","og_title":"New drilling incentives aim to bridge the output gap","og_description":"Good morning, wonderful people. Our first report as we start day four of this regional war is from the Department of Histrionics: The United States wants its citizens to pull out of Egypt. Wait, Enterprise, out of Egypt? Yep, Egypt. A post on the X account of Assistant Secretary for Consular Affairs Mora Namdar is [&hellip;]","og_url":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/","og_site_name":"EnterpriseAM Egypt","article_published_time":"2026-03-03T00:00:00+00:00","article_modified_time":"2026-03-03T09:02:11+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/146.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"New drilling incentives aim to bridge the output gap","datePublished":"2026-03-03T00:00:00+00:00","dateModified":"2026-03-03T09:02:11+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/"},"wordCount":942,"publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/146.jpg?fit=%2C&ssl=1","keywords":["energy","EnterpriseAM","oil and gas","Oil Ministry","What We're Tracking Today"],"articleSection":["What We're Tracking Today"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/","url":"https:\/\/enterpriseam.com\/egypt\/2026\/03\/03\/new-drilling-incentives-aim-to-bridge-the-output-gap\/","name":"New drilling incentives aim to bridge the output gap - 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Previous editions of the conference, which is meant to take place every three months, were held in Sharm El Sheikh, Aswan, Ismailia, and Alexandria. 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