CAIRO, Aug 7 – Egypt is preparing to award seven new oil and gas exploration blocks as part of efforts to attract between $60 million and $70 million in new investment into its energy sector.
Samir Raslan, Chairman of the South Valley Egyptian Petroleum Holding Company, said six of the blocks are in southern Egypt and are expected to be awarded to Canada’s Mediterra and the General Petroleum Company. The areas include South Al-Baraka, North Al-Baraka and Khart.
The seventh block, located in the Red Sea, is expected to go to BP. Raslan said the selected areas have strong exploration potential and can be developed at relatively low cost.
To attract more investors, the company has also merged the Al-Baraka and West Al-Baraka concessions to make the projects more commercially attractive.
At the same time, a seismic survey covering nearly 100,000 square kilometres is being carried out across southern Egypt. The survey is expected to provide updated geological data and increase the number of exploration areas ready for investment to more than 10 after the evaluations are completed.
Raslan gave the update during Petroleum and Mineral Resources Minister Karim Badawi’s visit to the Al-Baraka field in Kom Ombo, Aswan. Drilling and production at the field have resumed after being suspended since 2022.
Mediterra has already deployed its first drilling rig and restarted work at the field. The company is maintaining seven wells, drilling two new wells and assessing five others to identify the best locations for future drilling.
Badawi said expanding oil and gas exploration in Upper Egypt remains an important part of the government’s energy strategy. He added that investment incentives and the merger of concession areas are expected to make projects more profitable, increase production and attract more international energy companies.
