Karim Badr, Egypt's Minister of Petroleum and Mineral Resources, has announced the resumption of development activities at the Zohr gas field following the arrival of the Saipem 10000 drillship in Egyptian waters at the end of January. After completing essential preparations, drilling of the first well in the new phase of the field's development project began in mid-February, in collaboration with Eni, Arcius, and Mubadala Rosneft. The initiative aims to enhance natural gas production rates and counteract the natural decline in well output. The announcement was made during the general assembly meeting of Petro Shorouk and Petrobel, where the planning budget for the fiscal year 2025/2026 was approved. Minister Badr expressed satisfaction with the continued developmental drilling activities at Zohr field, emphasizing the strong teamwork involved in restoring and increasing production levels. He underscored the project's significance for Egypt and its partners, highlighting the need for a structured action plan to optimize production and address natural declines in well productivity. Francesco Gaspardi, Director of Eni in Egypt, affirmed the company's commitment to supporting medium- and short-term efforts, identifying high-potential opportunities, and implementing plans to mitigate natural well declines. He expressed optimism regarding the success of upcoming drilling operations. Salma Al-Hajri, Regional Vice President of UAE-based Mubadala Energy, extended her congratulations on the success of the EGYPS 2025 conference, a key event uniting industry stakeholders. She expressed enthusiasm about the resumption of drilling at Zohr field and optimism for positive outcomes benefiting all involved parties. Nasser Saif Al-Yafie, CEO of Arcius Energy, highlighted the critical importance of resuming drilling activities and intensifying operations due to their strategic significance for both Egypt and its partners. He noted the positive indicators for successful drilling and production maintenance and outlined future plans for increasing output. He also commended Petrobel for its operational efficiency and safety measures. Alexander Kozyrev, Head of Exploration and Production at Russian Rosneft, praised the collaborative efforts of all partners in restarting drilling operations at Zohr field and expressed anticipation for increased production in the near future. Khaled Mowafy, Chairperson of Petrobel, detailed the drilling progress, explaining that following the Saipem 10000 drillship's arrival in late January and completion of preparatory work, the ship moved to Zohr field on February 15. The drilling phase involves redirecting three wells—Zohr 13, Zohr 6, and Zohr 9—using coiled tubing technology in deep waters for the first time worldwide. Mowafy also highlighted the achievement of five and a half million safe working hours. During the Petrobel assembly, Minister Badr stressed the urgency of accelerating the development of discovered resources and integrating them into Egypt's production strategy. He emphasized the necessity of deploying additional drilling rigs to intensify operations and leveraging artificial intelligence to identify reservoirs before initiating drilling. Badr reaffirmed Eni's role as a strategic partner in Egypt's petroleum sector, highlighting its track record of successful collaborations. He noted that Eni CEO Claudio Descalzi's participation in the EGYPS 2025 conference, along with his meeting with President Abdel Fattah Al-Sisi, underscored the strength of the partnership and signaled new investment and growth opportunities in Egypt's energy sector. Francesco Gaspardi emphasized the promising potential within Petrobel's concession areas, particularly in Abu Madi. He outlined Eni's intensified activities aimed at stabilizing and increasing production through the operation of six drilling rigs and an expansion of onshore drilling operations. He also stressed the importance of advanced reservoir studies in achieving targeted production goals and ensuring sustainable output. Wael Shaheen, Regional Vice President of BP in Egypt, lauded Petrobel's commitment to safety, energy efficiency, and emissions reduction, as well as the company's ongoing efforts to lower production costs. Khaled Mowafy disclosed that $320 million has been allocated for operational activities, including $122m dedicated to well maintenance to sustain production levels. A portion of the budget will also support the necessary upkeep of production platforms across all company sites. Looking ahead, Petrobel aims to achieve a daily production rate of 144,000 barrels of oil equivalent and 434 million cubic feet of gas in the 2025/2026 fiscal year. This ambitious target requires collective efforts and an intensified focus on expanding operational activities. The company also plans to produce 58,000 barrels of crude oil, 4,730 barrels per day of condensates, and 130 tonnes per day of LPG while striving to maintain cost efficiency at optimal levels.
