Egyptian Petroleum Minister Discusses Boosting Investments and Gas Production with Energean CEO
Engineer Karim Badawi, Minister of Petroleum and Mineral Resources, met with Mr. Mathios Rigas, CEO of the Greek energy company "Energean," in the presence of Mr. Nicolas Katcharov, the company's Country Manager in Egypt. The meeting aimed to review the company's plans to expand its exploration, drilling, and natural gas production activities in the Mediterranean Sea, and to explore prospects for increasing its operations in Egypt during the coming period, following the settlement of investment partners' arrears.
The Minister emphasized that boosting local gas production remains at the forefront of the petroleum sector's priorities. He noted the state's commitment to providing the necessary incentives to encourage partners to expand their exploration activities, develop fields, and increase production rates, while actively working to overcome any challenges that might hinder the execution of work programs.
Concession Areas Integration
Minister Badawi stressed the importance of expediting the completion of agreements to integrate Energean's concession areas. He explained that merging these areas is a crucial measure to lower oil and gas production costs, thereby enhancing the economic feasibility of the investments needed to bolster domestic production.
He further added that the state continues to implement policies aimed at enhancing confidence in the investment climate, improving the sector's cash flows, and fulfilling obligations toward investment partners. These efforts empower companies to direct more investments into drilling, exploration, and field development, encouraging the accelerated implementation of work programs to achieve tangible increases in production.
Partnerships with International Oil Companies
The Minister pointed out that the progress achieved in resolving the arrears of investment partners represents a significant turning point in strengthening partnerships with international oil companies (IOCs). This progress paves the way for a new phase of increased investments and expanded petroleum activities. He reaffirmed the commitment to leveraging this improved climate to drive forward production and exploration momentum.
During the meeting, the Minister also showcased the investment opportunities presented by the newly launched international bid round for oil and gas exploration in promising areas. These areas are characterized by their proximity to existing infrastructure and facilities, which helps reduce investment costs and shorten the timeframe required to tie new discoveries into the production grid.
Energean's Investment Outlook
For his part, Mr. Mathios Rigas, CEO of Energean, praised the positive collaboration and continuous dialogue with the Ministry of Petroleum and Mineral Resources. He affirmed that the measures taken to settle partners' receivables have contributed to creating a highly positive environment, transitioning the focus from resolving challenges to a new phase centered on expansion and increased investments.
Rigas indicated that Energean views growth opportunities in Egypt favorably. He noted that the improved investment climate opens the door for new plans to maximize the company's investments, scale up drilling and field development activities, and boost gas production rates in the near future.
(The meeting was attended by Eng. Salah Abdelkarim, CEO of the Egyptian General Petroleum Corporation (EGPC); Eng. Sayed Selim, Executive Managing Director of the Egyptian Natural Gas Holding Company (EGAS); Eng. Mahmoud Nagi, Undersecretary for Safety, Environment, Energy Efficiency and Climate, and Official Spokesperson for the Ministry; and Eng. Ishaq Saad, Undersecretary for Production.)