Engineer Karim Badawy, Minister of Petroleum and Mineral Resources, announced the success of Khalda Petroleum in introducing additional quantities of gas for consumption before the summer season. During the general assembly of Khalda, held to approve the amended budget for the fiscal year 2026/2025, Badawy emphasized the importance of constructive cooperation with foreign oil sector partners, noting that Apache International serves as an exemplary model of such fruitful partnerships.
The minister pointed out that the achievements in the Western Desert fields are part of a continuous development journey aimed at ensuring the safety of workers, as accident prevention is a priority. He affirmed that establishing a safety culture leads to good production outcomes.
Event Details
In his remarks, Badawy stressed that the human element is the primary driver of success, emphasizing the need to employ this element correctly. He explained that rapid growth requires building capacities according to needs and providing continuous training as part of the upcoming five-year plan. He also highlighted the importance of accelerating drilling and exploration operations to exploit the available potentials in Khalda fields.
He reiterated the necessity of reprocessing seismic data using modern techniques to identify new opportunities and reduce investment risks. He clarified that reducing the cost per barrel is a top priority to enhance economic feasibility, encouraging new investments in exploration operations and increasing local production.
Background & Context
Khalda Petroleum is considered one of the leading companies in exploration and production in Egypt, playing a vital role in meeting the local market's gas and oil needs. During the first half of the fiscal year 2025/2026, the company achieved 15 oil discoveries, adding estimated reserves of approximately 15 million equivalent barrels.
The company also continued implementing seismic data reprocessing programs in the Abu Gharadiq and West Kalabsha areas, where 26 new development wells were drilled, contributing to achieving production targets of 100% for equivalent oil and 107% for natural gas.
Impact & Consequences
Khalda Petroleum aims to increase production rates and accelerate implementation before the summer season, in collaboration with EGAS and GASC. This cooperation aims to accommodate gas quantities and connect them to the national natural gas grid, contributing to meeting the rising demand during the summer season.
A comprehensive plan has also been prepared to secure the strategic inventory of equipment and raw materials in the company's warehouses, covering operational needs for 6 months. The company targets spending $1.043 billion during the fiscal year 2026/2027, with plans to drill 47 exploratory wells and 57 production wells.
Regional Significance
The success of Khalda Petroleum in increasing gas quantities is a significant step towards enhancing energy security in Egypt, contributing to economic stability in the region. This success reflects the capability of Egyptian companies to collaborate with global firms to achieve common goals.
In conclusion, this achievement serves as evidence of the importance of investing in the energy sector, reinforcing Egypt's position as a regional energy hub.