Saudi Arabia: Egypt has signed a new offshore drilling contract with BP and US-based Valaris for five gas wells in the Mediterranean Sea, as it accelerates efforts to boost output and attract foreign investment.

Petroleum Minister Karim Badawi witnessed the signing of the agreement, which marks the launch of BP’s latest drilling program in Egypt. The project will target five natural gas wells at depths ranging from 300 to 1,500 meters, using the Valaris 12-DS deepwater drilling rig, the ministry said in a statement.

The initiative aligns with the Ministry of Petroleum and Mineral Resources’ strategy to boost international investment and broaden exploration efforts in the North African nation. It also continues BP’s more than 60-year partnership with Egypt’s petroleum sector as a major partner in oil and gas exploration and production.

“BP is one of the petroleum sector’s most important strategic partners in natural gas production,” the ministry quoted Badawi as saying.

He added that recent gas production projects in the Mediterranean have been “pivotal in increasing domestic gas production and securing new resources during peak summer consumption.”

Badawi said the ministry is fully supporting new projects to accelerate their implementation, with the goal of adding fresh gas output over the coming year, discovering new reservoirs, and strengthening Egypt’s production capacity while reducing import dependence.

The contract was signed in the presence of Mahmoud Abdel Hamid, CEO of the Egyptian Natural Gas Holding Co., following a memorandum of understanding last month in London between EGAS and BP that the minister had signed.

Egypt’s oil and gas production has entered a phase of gradual growth since August, following a four-year decline, with natural gas output increasing by more than 200 million cubic feet per day, the ministry said.

This boost has helped the government reduce the fuel import bill by $3.6 billion and settle $1 billion in arrears owed to international partners.

“The new drilling program is scheduled to begin in 2026 and covers a mix of appraisal, development, and exploration wells aimed at accelerating the development and production of gas reserves in the region, while leveraging existing onshore and offshore infrastructure in the West Nile Delta area,” the statement added.

Nader Zaki, BP’s regional president for the Middle East and North Africa, said the signing strengthens the company’s long-standing partnership with Egypt and is a strategic step to develop more gas resources in the Nile Delta and bring them online quickly to meet local demand.