Egypt is actively working to establish its position as a leading energy hub and boost gas production through new bids for oil and gas exploration. The country has plans to launch two separate biddings by the end of 2023, covering over 16 regions in the south of Egypt and the Red Sea areas. These initiatives aim to attract companies interested in exploring untapped reserves to help achieve Egypt's energy goals.
Earlier this year, Egypt extended the closing date for two previous bids until mid-July. This extension was to allow more time for companies to express interest in exploring regions such as the Mediterranean, the Delta, the Gulf of Suez, and the Eastern Desert. The upcoming bids will include eight regions under the Egyptian General Petroleum Corporation and a minimum of eight regions under the South Valley Petroleum Holding Company, according to media reports.
For the South Valley Petroleum Holding Company, this bidding round is especially important as It marks their first bidding opportunity since March 2019, when UAE companies Chevron, Shell, and Mubadala were awarded 3 sectors for exploration.
Currently, Egypt already produces an amount of natural gas ranging from 6.5 to 7 billion cubic feet per day. However, the country aims to further increase its production and solidify its position as a prominent energy hub. With the new bidding rounds, Egypt hopes to attract investments and expertise that will support the whole process related to gas exploration and liquidation, contributing to its ambitions as an energy leader in the region and the world.