The WDDM Phase 12a development initiative brings together multiple stakeholders in the energy sector. The Egyptian Natural Gas Holding Company, the Egyptian General Petroleum Corporation, and Malaysia’s state-owned energy enterprise are collaborating on this venture. The project structure calls for the development of three deepwater subsea wells, with production expected to commence in 2028.

Strategic Integration of Existing Infrastructure

Shell said that by utilizing established deepwater gas development infrastructure, the WDDM Phase 12a development project timeline can be compressed, capital requirements can be optimized, and the necessity for additional facilities is reduced.

“This investment demonstrates our commitment to maximizing the remaining potential in WDDM where the right technical and commercial conditions exist,” said Dalia Elgabry, Vice President and Country Chair of Shell Egypt.

The WDDM Phase 12a will follow the development approach adopted for WDDM Phases 10 and 11, with the new wells connected to the existing subsea infrastructure operated by the Burullus Gas Company joint venture.

Supporting Egypt’s Energy Security Goals

The WDDM Phase 12a development initiative addresses broader energy objectives within Egypt. The country continues efforts to sustain and strengthen domestic natural gas production capacity. Furthermore, the project will help secure fuel supply for power generation and industrial demand.

Shell’s operations in Egypt are primarily centered on offshore natural gas production, particularly in the Mediterranean. The company holds interests in the WDDM, Rosetta, and Northeast El Amriya concessions, as well as a stake in Egyptian Liquefied Natural Gas Company (ELNG), which operates the Idku LNG plant.

Comprehensive Drilling and Production Strategy

Eni outlined an ambitious drilling schedule as part of its Egypt energy investment framework, announcing plans to execute 30 exploration wells alongside 200 development wells during the coming operational period. These drilling activities will span the company’s concessions, with particular emphasis on the Mediterranean region and the Zohr field, a strategically important production asset.

The company intends to leverage advanced technologies in its 2026 and 2027 operational calendar, particularly for Mediterranean and Western Desert activities. Eni plans to employ seismic surveying capabilities and artificial intelligence technologies to enhance natural gas and crude oil production efficiency across its Egypt energy investment portfolio.

Regional Gas Hub Development and Strategic Partnerships

A significant component of the discussion centered on the potential connection of Cyprus’s Cronos gas field to Egyptian infrastructure. Descalzi emphasized that this infrastructure linkage would establish a collaborative model for regional gas cooperation, positioning Egypt as an increasingly important regional gas hub.

The Cronos project gained momentum in July when Eni and TotalEnergies announced a final investment decision for the development initiative. The partnership aims to deliver Cypriot gas to market through Egyptian facilities by 2028, with expected production reaching 500 million cubic feet per day. This interconnection represents a strategic advancement for energy infrastructure coordination across the Eastern Mediterranean region.

Government Support and Strategic Alignment

El-Sisi expressed Egypt’s commitment to Eni’s operations, welcoming the company’s Egypt energy investment initiatives and emphasizing the government’s intention to maintain cooperative relationships and facilitate continued growth. The President indicated that Egyptian authorities would continue providing operational support while addressing infrastructure and logistical challenges that may affect company activities.

Prime Minister Mostafa Madbouly and Karim Badawi, Minister of Petroleum and Mineral Resources, participated in the meeting alongside senior Eni management representatives, demonstrating the high-level governmental engagement with the project.

The proposed initiative aligns with Egypt’s efforts to accelerate exploration, field development and production activities in the coming years, with focus on petroleum drilling expansion to elevate the country’s petroleum objectives.

Strategic Focus on Accelerated Production

During the meeting, Badawi outlined the ministry’s comprehensive strategy for the coming five years, which centers on increasing the rate of well drilling as a foundational element. The Egypt petroleum drilling expansion initiative aims to support the country’s broader objectives of accelerating exploration activities, advancing the development of newly discovered reserves, and deploying cutting-edge drilling technologies.

The minister emphasized that Egypt’s petroleum sector presents substantial opportunities for expanded cooperation. The country’s ambitious oil gas production Egypt targets require collaboration with experienced drilling and oilfield services companies capable of delivering large-scale operations.

The discussions were participated by Salah Abdel Karim, CEO of the Egyptian General Petroleum Corporation, Mahmoud Nagy, Undersecretary of the Ministry responsible for safety, environment, energy efficiency and climate affairs and the ministry’s official spokesperson and Ahmed El-Badawy, ADNOC Drilling’s Executive Vice President for Business Development.

ADNOC Drilling’s Involvement and Technical Capabilities

Al-Messabi said ADNOC Drilling is interested in broadening its operational footprint within the Egyptian market. The organization indicated readiness to establish working partnerships with the Egyptian General Petroleum Corporation and its subsidiary entities. The company acknowledged the merit of Egypt’s strategic plan to substantially increase onshore and offshore drilling activities over the five-year horizon and signaled commitment to contributing its technical and technological resources toward achieving these production objectives.

Al-Messabi also highlighted the potential for cooperation with the Egyptian Drilling Company, recognizing the firm’s extensive experience in executing oil and gas drilling projects both domestically and internationally.

Regional Cooperation and Investment Climate

The engagement between Egyptian petroleum authorities and ADNOC Drilling also represents a deepening of bilateral petroleum and energy sector cooperation between Egypt and the United Arab Emirates. Badawi noted that strengthened investment climate measures and confidence-building initiatives provide a solid foundation for attracting new investment and spurring increased exploration and production activities across the sector.

Production Targets and Long-Term Strategy

Egypt’s focus on petroleum drilling expansion aligns with the the petroleum ministry’s mission to maximize domestic energy production. By intensifying onshore and offshore drilling operations, Egypt seeks to enhance its hydrocarbon reserves development and ensure sustained production growth. The partnership framework with experienced international service providers is viewed as essential to meeting ambitious production targets while maintaining operational excellence and safety standards.

Upcoming technical meetings will establish the groundwork for implementing specific cooperation arrangements, enabling both parties to leverage their combined expertise to support Egypt’s petroleum sector expansion objectives.

Focus on Advanced Extraction Technologies

Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, engaged with senior leadership from Halliburton to explore opportunities for enhancing oil and gas production efficiency. The discussions, led by Ahmed Helmy, Vice President for North Africa at Halliburton, emphasized the application of specialized technologies and technical expertise tailored to Egypt’s upstream sector. The proposed oil and gas production studies will evaluate the technical and economic viability of implementing horizontal drilling and hydraulic fracturing across Egypt’s diverse geological formations.

Comprehensive Field Assessment Strategy

The technical framework being developed aims to assess individual reservoirs based on their specific characteristics and production potential. This approach enables the identification of fields where advanced techniques can deliver tangible improvements in output volumes, enhance overall field economics, and substantially reduce both operational and production expenses.

Coordinated Implementation Framework

Minister Badawi emphasized the importance of establishing stronger coordination mechanisms between Halliburton and Egypt’s primary petroleum entities. This coordinated approach involves the Egyptian General Petroleum Corporation, the Egyptian Natural Gas Holding Company, and South Valley Egyptian Petroleum Holding Company. Through this collaborative structure, stakeholders will identify priority opportunities and develop actionable implementation programs designed to translate technical findings into operational improvements.

Halliburton has commenced preliminary investigations targeting unconventional areas and previously underutilized reservoirs. The company plans to conduct extensive technical analysis across Egypt’s petroleum operations during the coming months, with particular attention to determining optimal applications for horizontal drilling and hydraulic fracturing based on individual reservoir characteristics.

Identified Enhancement Opportunities

The technical evaluation has already identified promising prospects for production increases and operational performance improvements at multiple Egyptian petroleum operators. Halliburton has highlighted potential applications at Khalda Petroleum, General Petroleum Company, and Badr Petroleum, which operates as a subsidiary of Western Desert Operating Petroleum Company. The company intends to expand these proven applications beyond these initial operators, working directly with additional petroleum companies to transform identified opportunities into focused implementation initiatives.

Expanded Operational Capacity and Support

Halliburton’s operational flexibility represents a significant advantage in executing the proposed oil and gas production studies and subsequent operations. The company’s capacity to redeploy specialized equipment, technical assets, and expert personnel across North African operations positions it to strengthen its presence in Egypt while delivering comprehensive technical and technological support to exploration and production entities.

Helmy acknowledged recent policy improvements implemented by the Ministry of Petroleum and Mineral Resources designed to enhance the investment environment and bolster engagement with international petroleum operators. He particularly noted positive developments concerning the settlement of financial obligations to foreign partners.

About Halliburton’s Capabilities

As a provider of specialized oilfield services, the company delivers comprehensive solutions to the upstream oil and gas production segment, encompassing drilling operations, well completion services, reservoir stimulation, and production performance optimization. The company’s prior involvement in Egyptian operations includes completion of hydraulic fracturing operations at the BAPETCO BED-15 concession located in the Western Desert.

Halliburton is invested in several other production sites across the world. One such example is a joint management contract signed with Iraq’s Basra Oil Company for two oilfields.

Strategies for Efficient Production

To achieve this goal, the Ministry has instructed project stakeholders to evaluate all available technical solutions and alternatives that could shorten the current project timeline. The primary objective is to bring the Harmattan gas field onstream as quickly as possible, allowing for the effective utilization of the region’s reserves.

The development plan highlights several critical components:

• Infrastructure integration: The field will be linked to the Hapiya processing facility via a 50-km gas pipeline, according to Pharaonic Petroleum Company Chairman Hossam Zaki.
• Targeted output: Once fully operational, the project aims to produce approximately 200 million cubic feet of natural gas per day, alongside 4,400 barrels of petroleum condensates daily.
• Technical collaboration: ENPPI is serving as the primary contractor, working in close cooperation with Petrojet and Petroleum Marine Services.

Advancing Drilling and Exploration

Beyond the specific development of the Harmattan gas field, the Minister underscored the importance of deploying cutting-edge technology in drilling and exploration. These efforts are designed to improve success rates and maximize the overall yield of Egypt’s energy resources.

The Pharaonic Petroleum Company reported that it successfully met its production targets for the 2025–2026 fiscal year. Looking ahead, the firm is focused on expanding its infrastructure capabilities and reviewing exploration opportunities in the Ras El Bar, North Damietta, and Al-Borg areas.

The Tort-6 well is expected to commence production before the end of the year, with a targeted output of 40 million cubic feet of gas per day.

As part of the ongoing exploration program, drilling is also planned at the West Atoll exploratory well using the Valaris DS-12 rig. The project represents an investment of around $91 million and will target a depth of 6,000 meters. In addition, drilling activities are planned for the Benio well in the Ras El Bar area.

The talks come as Egypt prepares for the Egypt Mining Forum, scheduled for September 2026. A central focus of the meeting was identifying mechanisms to encourage investment opportunities in the oil and gas sector while also diversifying and maximizing the utilization of natural resources. The discussions highlighted the role of stronger coordination between the relevant authorities in supporting petroleum sector investment and presenting opportunities available across Egypt’s natural resource industries.

Egypt Mining Forum to Highlight Investment Opportunities

The two ministers underlined the importance of promoting the upcoming Egypt Mining Forum, which is scheduled for September 2026 in the New Administrative Capital under the patronage of President Abdel Fattah El-Sisi.

The event is expected to bring together leaders from the mining sector, investors, and Egyptian and international companies. It will provide a platform for highlighting promising investment opportunities in oil and gas exploration and production to global companies operating in Egypt. Against this backdrop, petroleum sector investment remains an important area of cooperation as Egypt seeks to present its available opportunities to investors and companies.

Regional Cooperation and Technology to Support the Energy Sector

Minister Abdelatty also emphasized the need to strengthen cooperation with regional and international partners in the energy sector. Such cooperation, he said, will contribute to consolidating Egypt’s position as a regional hub. Egypt aims to facilitate energy trading and development by leveraging its strategic geographic location, advanced infrastructure, logistical capabilities, and specialized facilities.

The Minister also stressed the importance of expanding the exchange of expertise and experiences with energy-producing nations in research, exploration, and production, while employing the latest technologies to explore and utilize natural resources. These efforts, he noted, will enhance the competitiveness of the sector and attract further foreign investment, supporting Egypt’s wider petroleum sector investment objectives.

Ministry Cooperation to Expand Global Opportunities

For his part, Minister of Petroleum and Mineral Resources, Karim Badawi, described the Egypt Mining Forum as an extension of intensive efforts to promote Egypt’s significant mineral wealth and opportunities. He also highlighted the importance of cooperation with the Ministry of Foreign Affairs in promoting investment opportunities and incentives in the oil, gas, and mining sectors internationally through the Ministry’s diligent diplomatic efforts.

According to Badawi, these initiatives also support petroleum sector companies specializing in project implementation, maintenance, and infrastructure development, allowing them to expand into new markets outside Egypt.

Contract Award and Survey Scope

The Ministry of Petroleum and Mineral Resources awarded the Western Desert seismic survey contract to Saudi Arabia-based Ardiseis, an entity specializing in seismic acquisition services, following a competitive tender. Minister Badawi noted that the initiative forms part of Egypt’s broader strategy to expand exploration frontiers and provide updated subsurface data to assist investors in evaluating new prospects. This initiative aligns with broader operational commitments, including nine seismic surveys announced in July 2026 across areas such as West Assiut and the Eastern Mediterranean, backed by foreign investment commitments exceeding $17 billion over five years.

Exploration Metrics and Drilling Commitments

Egyptian General Petroleum Corporation CEO Salah Abdel Kerim outlined recent operational achievements, stating that 149 exploration wells were drilled over the past two fiscal years. These operations led to 112 new discoveries, comprising 88 crude oil finds and 24 natural gas discoveries, including the Denis offshore gas discovery located in Port Said.

Abdel Kerim added that during fiscal years 2024/25 and 2025/26, Egypt completed 19 exploration and production agreements featuring minimum investments of $823.1 million, signature bonuses of $93.5 million, and commitments to drill 134 wells. An additional 13 agreements are in preparation, involving investments exceeding $1 billion and commitments to drill 120 wells.

Entity Operational Performance

Egyptian Natural Gas Holding Company Executive Managing Director Sayed Selim stated that drilling activity rose from two wells in FY 2020/21 to 15 wells in FY 2025/26, while discoveries increased from one to ten over the same period. During FY 2025/26, the company awarded 11 new exploration areas and signed five agreements to support operations in the Mediterranean Sea and Nile Delta.

South Valley Egyptian Petroleum Holding Company (Ganope) Chairman Samir Raslan reported that company production reached approximately 33,000 barrels per day in FY 2025/26 following the drilling of 33 development and 11 exploration wells. The company is currently executing a 100,000-square-kilometer Egypt seismic survey program south of the Western Desert, with processed data expected by year-end to assist future Egypt oil exploration opportunities.

Under its active five-year plan, the company aims to drill 36 exploration wells backed by $177 million in investments, with potential expansion to 60 wells following the awarding of 20 new areas. It also plans on offering 17 strategic investment opportunities in promising area. Ganope is also targeting production levels of 44,000 barrels per day in FY 2026/27 and 65,000 barrels per day by FY 2030/31.

The Western Desert seismic survey project aims to build a modern geological and geophysical database to encourage petroleum investments in an unexplored area that represents roughly 11% of Egypt’s total territory and has no prior history of petroleum activities.

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.

Project Overview and Resource Assessment

The Cronos field, located in Block 6, contains more than 3 trillion cubic feet (tcf) of gas initially in place (GIIP). The Cyprus gas production initiative is designed to extract and process these reserves through a coordinated development strategy. Production capacity is anticipated to reach 500 million cubic feet per day (mmcf/d), translating to approximately 2.8 million tons per year (mmt/y) of liquefied natural gas (LNG).

Block 6 operations are managed by Eni, which holds a 50% interest in the project, with TotalEnergies serving as the project partner. The Cronos gas field was initially discovered in 2022, followed by successful appraisal activities completed in 2024.

Development Infrastructure and Production Framework

The field development plan incorporates four subsea wells designed to extract gas from the offshore reservoirs. Rather than constructing new processing infrastructure, the project leverages existing facilities in the region. Produced gas will be transported and processed at the Zohr facilities located in Egypt, consolidated with other regional production, and subsequently transferred to the Damietta LNG plant for liquefaction and export.

Regional Cooperation and Commercial Framework

The Cronos field FID followed commercial agreements finalized in October 2025 between Egypt and Cyprus authorities. Several key agreements support the project structure:

• A Handling, Transportation and Processing Agreement (HTPA) between Eni, TotalEnergies, the Egyptian Natural Gas Holding Company (EGAS), IEOC (Eni’s Egypt subsidiary), and Petrobel
• A tolling contract between Eni, TotalEnergies and Damietta LNG export facility
• A tariff agreement between Block 6 partners and Egypt’s Ministry of Petroleum and Mineral Resources

Reflecting on the Cronos field FID, Karim Badawi, Minister of Petroleum and Mineral Resources, said, “The Cronos project’s final investment decision is not merely a step toward gas field development, but an international endorsement of Egypt’s strategy to leverage infrastructure and transform resources into shared economic value. What we are witnessing today is a practical translation of the state’s vision to make Egypt a major energy hub in the Eastern Mediterranean and a reliable partner in supporting global energy security.”

Eni CEO Claudio Descalzi commented, “Cronos fast-track initiative marks a concrete milestone in positioning Cyprus as a European gas producer and exporter, and it unlocks the establishment of a regional gas hub in the Eastern Mediterranean by leveraging Egypt’s existing hydrocarbon infrastructure. It is furthermore an example of international cooperation and a concrete contribution to the diversification and security of Europe’s gas supply.”

Through these oil and gas deals, the government is reinforcing its strategy to increase local energy supplies in response to growing domestic demand while navigating an increasingly uncertain global energy environment. The approvals represent another step in Egypt’s broader efforts to strengthen upstream activity by supporting exploration and development across several strategically important producing regions.

Among the newly approved oil and gas deals, one of the principal agreements authorizes the Egyptian Natural Gas Holding Company (EGAS) to collaborate with Perenco North Sinai Petroleum Inc. on exploration activities within the Al-Fayrouz onshore block in North Sinai. The concession marks a new exploration area awarded to the company through EGAS’s 2024 international licensing round, with the contract having been finalized in June 2025. Perenco North Sinai Petroleum, a subsidiary of Egypt Kuwait Holding, has maintained operations in the North Sinai concession since 2014. As part of the latest agreement, the company will carry out a three-dimensional seismic survey before drilling an exploratory well aimed at assessing the block’s oil and gas potential.

Exploration Expansion Supports Domestic Energy Security Goals

The remaining oil and gas deals focus on exploration and production projects located in the Nile Delta, the Mediterranean and the Eastern Desert, reflecting Egypt’s continued commitment to expanding exploration activities across both mature and frontier basins. These approvals align with the government’s ongoing efforts to accelerate licensing rounds while encouraging greater private sector participation in upstream projects.

Through these measures, Egypt seeks to reverse declining production levels and improve national energy self-sufficiency by expanding exploration opportunities across multiple resource-rich regions.

The parliamentary approvals also come at a time when energy markets continue to respond to geopolitical developments across the Middle East. Persistent regional tensions have increased concerns regarding the security of critical shipping routes used for global crude oil and liquefied natural gas (LNG) exports. Against this backdrop, strengthening domestic production capacity has become an important priority. By moving ahead with new exploration programs and continuing to support investment in the upstream sector through these oil and gas deals, Egypt is working to strengthen energy security, reduce dependence on imports and reinforce its position as a leading energy producer and gas hub in the Eastern Mediterranean.