Minister of Petroleum and Aswan Governor Inspect Resumption of Drilling Operations at Al-Baraka Field

Cairo - Nahed Imam:

Minister of Petroleum and Mineral Resources, M. Karim Badawy, accompanied by Aswan Governor Eng. Amr Lashin, conducted an inspection visit to the Al-Buraka field in the Kom Ombo area, which is operated by the Egyptian South Valley Holding Company for Petroleum. The visit was attended by ministry leaders, Dr. Samir Raslan, Chairman of the company, Mehmet Kont, President of the Canadian investor company Mediterra in the region, and MP Ahmed Al-Qahmouri, a member of the House of Representatives representing Kom Ombo.

The visit comes as part of the Ministry’s efforts to monitor the reactivation of petroleum investments in Upper Egypt and resume drilling and production operations in promising areas, thereby supporting plans to increase production, attract new investments, and achieve economic development in Upper Egyptian governorates.

The Minister inspected the resumption of drilling and maintenance of production wells at the field, which had been halted since 2022. This follows the start of new investments by the Canadian company Mediterra and the arrival of the first drilling rig in the area to implement a program targeting the rehabilitation of several wells and returning them to production, marking a new step in revitalizing petroleum activity in southern Egypt.

He emphasized that Upper Egypt represents a key pillar of the Ministry of Petroleum and Mineral Resources’ strategy to increase exploration, search, and production activities, given the region’s abundant potential for promising petroleum resources that have not received adequate exploration efforts in recent years.

He clarified that the ongoing seismic survey project in southern Egypt covers approximately 100,000 square kilometers, equivalent to about 10% of the country’s total area, and will provide modern data that contributes to identifying and promoting promising investment opportunities to investors. He noted that new investment opportunities resulting from the project will be announced immediately upon completion of their evaluation, alongside the implementation of a package of investment incentives, including the R-Factor system and the integration of concession areas, which will enhance the economic viability of projects and encourage companies to inject more investments.

He added that developing petroleum activity in Upper Egypt is not limited to increasing production; its effects extend to creating new job opportunities, activating complementary industries and services, and training more specialized petroleum cadres from among the people of Upper Egypt, thereby enhancing the sector’s contribution to comprehensive development in southern Egypt.

He affirmed the Ministry’s full support for the success and expansion of the Canadian company Mediterra in the region, noting that the company’s resumption of new investments came after the successful settlement of foreign partners’ dues, in accordance with the directives of the political leadership, which restored confidence in the investment climate of the petroleum sector.

He added that the Ministry is working to support the company’s expansion into additional areas alongside its current operational zone and to merge the two current concession areas, thereby enhancing the economic viability of its investments. He emphasized that the company’s success in Upper Egypt sends a positive message and serves as a catalyst to attract more global companies to work and invest in southern Egypt.

For his part, Dr. Samir Raslan, Chairman of the Egyptian South Valley Holding Company for Petroleum, stated that the resumption of drilling operations at the Al-Buraka field marks the beginning of a new phase in revitalizing petroleum activity in the area after drilling and production operations were halted in 2022. He noted that work resumed last month to implement a program for the maintenance of seven wells, drilling two new wells, and studying the drilling of five additional wells after identifying the best locations in cooperation with Egypt Upstream (EUG).

He added that the company is working to award six new areas for oil and gas exploration in southern Egypt, including the south and north of Al-Buraka and Khart, to the Canadian company Mediterra and the General Petroleum Company, as well as an area in the Red Sea to BP, with investments ranging between $60 and $70 million. These are good investments in low-cost areas. He also confirmed the merger of the Al-Buraka and West Al-Buraka areas to increase economic viability. He stressed that the ongoing seismic survey project will contribute to increasing the number of areas ready for investment to more than ten, thereby enhancing the status of southern Egypt on the investment map for search and exploration.

During the tour, the Minister inspected the rehabilitation works of the Al-Buraka-20 well and listened to a presentation by Eng. Mahmoud Talaba, President of Kom Ombo Petroleum Company, regarding the implementation rates and targets of the drilling and maintenance program. He also ascended the drilling rig, monitored the progress of operations, and conversed with workers, emphasizing the importance of full compliance with occupational safety and health standards and accelerating the implementation of maintenance and drilling programs for production wells, which will contribute to maximizing production.