Egypt is preparing to award seven new oil and gas exploration blocks in Upper Egypt and the Red Sea, with planned investments estimated at between $60 million and $70 million. The move is part of efforts to expand exploration activity in areas considered to have significant petroleum potential. Samir Raslan, Chairman of the South Valley Egyptian Petroleum Holding Company, said six of the blocks are situated in southern Egypt and are set to be awarded to Canada’s Mediterra and the General Petroleum Company. The areas include the South Al-Baraka, North Al-Baraka and Khart areas. The seventh block is located in the Red Sea and is expected to be awarded to BP. According to Raslan, the targeted locations provide promising exploration prospects while requiring relatively low development costs. The planned awards would add to Egypt’s pipeline of new oil and gas exploration blocks being prepared for investment.
Al-Baraka Concessions Consolidated as Seismic Survey Continues
The South Valley Egyptian Petroleum Holding Company has also combined the Al-Baraka and West Al-Baraka concessions in an effort to improve their economic viability and create conditions for additional investment. At the same time, an extensive seismic survey is being conducted across nearly 100,000 square kilometres of southern Egypt. The area covered by the survey represents around 10% of the country’s total area. Once completed, the survey is expected to provide updated geological data and raise the number of investment-ready areas in the region to more than 10. Opportunities identified through the project will be presented to investors after their evaluations are completed, creating a further pipeline of new oil and gas exploration blocks for potential development.
Al-Baraka Field Restarts Drilling and Production
Raslan made the remarks during Petroleum and Mineral Resources Minister Karim Badawi’s inspection of the Al-Baraka field in Kom Ombo, Aswan. Drilling and production activities at the field have resumed following their suspension since 2022. Mediterra has deployed the first drilling rig to the area and begun injecting fresh investment under a programme designed to restore production. The programme covers the maintenance of seven wells, drilling of two new wells and evaluation of five additional wells. In cooperation with the Egypt Upstream Gateway, the company will determine the most suitable locations for further drilling. The activities are intended to support the wider development of new oil and gas exploration blocks and petroleum opportunities in southern Egypt.
Government Seeks Greater Investment in Upper Egypt
Badawi said Upper Egypt represents a major component of the ministry’s strategy to increase exploration and production, particularly because the region’s petroleum potential has remained largely underexplored. The government intends to support exploration and production through investment incentives, including the R-Factor mechanism and the consolidation of concession areas. These measures are aimed at improving project economics and encouraging companies to allocate additional capital to the region. Badawi also said greater petroleum activity in Upper Egypt would contribute to production growth, create employment opportunities and stimulate related industries and services. The expansion would also support the development of specialised petroleum professionals from the region. The minister reaffirmed the government’s support for Mediterra’s expansion and said the settlement of outstanding payments owed to foreign partners had encouraged the company to resume investment. He added that Mediterra’s success could improve investor confidence and encourage more international energy companies to pursue opportunities in southern Egypt.
