45% Renewables by 2028 Marks Egypt’s Next Energy Milestone
Egypt has set a new benchmark for its energy tr...
Tuesday, 01 September 2026
Egypt's Ministry of Petroleum and Mineral Resources (MoPMR) has signed six preliminary exploration agreements covering key acreage in Upper Egypt, marking one of the region's most significant petroleum investment pushes in years. The deals span North Baraka, Red Sea, Khart, South Baraka, Southeast Ras El Ush, and East Zeit, areas the ministry sees as central to diversifying Egypt's upstream production base beyond its traditional Western Desert and Gulf of Suez strongholds.
Exploration Set to Begin in 2027
According to a Cabinet statement, field activity across the six blocks is scheduled to launch in 2027, with the ministry projecting output of 5,000 to 11,000 barrels per day by 2030. The figures come from a report submitted by Minister of Petroleum and Mineral Resources Karim Badawi and reviewed by Prime Minister Mostafa Madbouly.
The report frames the expansion as part of a broader strategy to position the petroleum sector as a driver of economic development in Upper Egypt, combining exploration, production, refining upgrades, and natural gas infrastructure with community investment.
New Frontiers: West Assiut and Dakhla Open for Bidding
Beyond the six signed agreements, MoPMR is courting international oil companies with fresh opportunities in the southern Western Desert, particularly the West Assiut and Dakhla areas. Integrated geological and geophysical databases are being compiled to showcase the zones' prospects to potential investors.
The ministry has also refreshed its national investment map with 20 new opportunities across southern Western Desert acreage and Red Sea blocks, to be rolled out over the next five years. The rollout is already underway. A bid round launched July 1, 2026 through the Egypt Upstream Gateway (EUG) is offering three blocks in the southern Gulf of Suez: Northeast Esh El Mallaha, North El Morgan, and Taer El Bahr.
Reviving a Historic Field: Baraka's Second Act
Production efforts are also focused on reviving the Baraka Field in Aswan, operated by Kom Ombo Petroleum Company (KOPCO). The field holds a special place in Egypt's petroleum history as the first commercial oil discovery in the south of the country. The original Baraka 1 well was discovered in October 2007 and began production that December, followed by the West Baraka 2 discovery, which came online in February 2013.
Refining Upgrades Take Shape in Assiut
The ministry has drawn up an integrated plan to modernise and expand refining capacity in Assiut Governorate, aiming to secure fuel supplies for Upper Egypt while converting lower value products into higher value fuels. The plan also prioritizes better integration between refining units and conversion complexes, and fuller use of existing transport, storage, and handling infrastructure.
Active projects include:
- A diesel production complex at Assiut National Oil Processing Company (ANOPC)
- A new crude distillation unit at Assiut Oil Refining Company (ASORC)
Future plans on the drawing board include a new gasoline production complex at ASORC and a feasibility study for ANOPC 2, a second diesel, naphtha, and LPG production complex in Assiut.
Natural Gas Reaches Millions of Households
MoPMR's natural gas connection program continues to expand steadily. Since 2009, the ministry has connected more than 2.195 million households, alongside roughly 9,432 commercial customers and 202 industrial facilities across Upper Egypt, as of June 2026.
In the 2025/26 fiscal year alone, over 146,000 new households were connected, and the ministry has set an even more ambitious target of 179,000 new connections for FY 2026/27. The expansion touches nine governorates: Fayoum, Beni Suef, Minya, Assiut, New Valley, Sohag, Qena, Luxor, and Aswan.
Supporting this growth is a network of more than 30 main pressure reduction stations and over 750 subsidiary distribution stations. Under the national Haya Karima (Decent Life) initiative, gas networks have reached 374 villages in the first phase, with 328 villages, about 88 percent, already connected.
Investing Beyond Energy: Community Development in Focus
The petroleum sector's footprint in Upper Egypt extends beyond pipelines and wells. Ongoing community initiatives include flood relief, accessibility projects for people with disabilities, healthcare infrastructure, and youth facilities. Notably, Nile Petroleum Company, with PETROJET as executing contractor, is building a new emergency and critical care unit at El-Eman General Hospital in Assiut. The ministry has also earmarked funds to upgrade the Al-Besaylia Youth Center in Aswan during FY 2026/27.
Source: Egypt Oil & Gas
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