Egypt Signs New Oil Exploration Agreement to Drill Four Wells in Gulf of Suez

Egypt inked a new petroleum exploration and production agreement aimed at expanding drilling activity in the Gulf of Suez, as the government pushes to revitalize output and reduce reliance on imported crude.

The deal, signed by Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi, grants exploration rights in the East Gamsa offshore block to the Egyptian General Petroleum Corporation (EGPC) and Pico Petroleum. The agreement involves a minimum investment commitment exceeding $30 million, along with a $1 million signature bonus, and includes the drilling of four new wells.

Badawi was joined at the signing ceremony by Salah Abdel Karim, CEO of EGPC, and Alan Linn, CEO of Cheiron Petroleum (Pico), underscoring what the ministry described as a strengthened partnership with the domestic private sector.

Speaking after the signing, Badawi said the agreement aligns with the ministry’s strategy to accelerate crude oil exploration and uncover new reservoirs that can bolster Egypt’s production capacity.

He emphasized that expanding domestic output remains central to the government’s efforts to limit imports and reduce financial pressure on the state. “This agreement reflects our commitment to intensifying exploration operations and expanding the resource base that supports national production,” he noted.

The announcement comes on the heels of several recent discoveries in the Gulf of Suez and Western Desert, including new finds reported by Badr El Din Petroleum and others, which have added thousands of barrels per day to the national output.

Badawi described the deal as a model of successful collaboration between the state and the Egyptian private sector, reflecting a broader initiative to draw more domestic investors into exploration and production activities. The ministry has increasingly highlighted private-sector engagement as key to revitalizing the upstream oil industry.

The minister also stressed that both the Western Desert and the Gulf of Suez continue to offer significant untapped opportunities. New technologies, he added, are enabling operators to better identify prospective reservoirs and maximize recovery from existing fields.

“The Gulf of Suez remains one of Egypt’s most promising basins,” he said, noting that enhanced cooperation with international and local partners would be crucial in unlocking further reserves.