Egypt Launches Mediterranean Gas Drilling Campaign to Boost Production

Egypt has launched a new offshore gas drilling campaign in the Mediterranean, signalling renewed momentum in its upstream energy sector as the government moves to boost production and restore investor confidence.

The Ministry of Petroleum and Mineral Resources said the arrival of the drilling vessel Valaris DS-12 in Egyptian waters marks the start of a programme targeting four wells for BP and Arcius Energy. The vessel will begin operations by drilling one production well and one exploratory well for BP before proceeding to two additional exploratory wells for Arcius Energy, a joint venture between BP and Abu Dhabi’s ADNOC.

Officials described the campaign as part of a broader strategy to expand offshore exploration and accelerate the development of gas resources to meet rising domestic demand. The ministry said the initiative forms part of plans to drill more than 100 exploratory wells in 2026, alongside development work in existing fields, to maximise output and unlock new reserves.

The push reflects growing confidence among international energy companies, supported by government incentives aimed at encouraging exploration and production. Authorities view expanded drilling as critical to reversing declines in output and strengthening the sector over the coming years.

The renewed activity comes as Egypt works to rebuild trust with foreign investors by settling long-standing financial obligations. Petroleum Minister Karim Badawi said the government plans to clear all remaining arrears, estimated at around $1.3 billion, by the end of June 2026, down from approximately $6.1 billion in mid-2024. He added that the ministry is maintaining regular monthly payments while addressing legacy debt accumulated during periods of economic strain.

Officials say improved payment discipline has already encouraged major international companies to scale up their commitments. Italy’s Eni is planning investments of about $8 billion, while BP has committed roughly $5 billion and Arcius Energy around $2 billion. Other firms, including Shell and Apache, have also expanded their activities, with total investments in Egypt exceeding $4 billion in recent projects.

Authorities say the combination of increased exploration, sustained investment, and improved financial management is beginning to stabilise production, with activity across the sector regaining pace after a period of slowdown.