Oil & Gas

Kuwait Foreign Petroleum Exploration Company’s Egyptian arm, Kufpec Egypt, in partnership with Shell Egypt, has reached a final investment decision to develop the Mina West gas field. Located in the North East El-Amriya concession in the Mediterranean Sea, this project represents a strategic move to enhance Egypt’s offshore gas production. The decision underscores the importance of regional energy collaboration, with both companies seeking to tap into Egypt’s substantial natural gas reserves.

Kufpec, a subsidiary of the state-owned Kuwait Petroleum Corporation, focuses on international oil and gas exploration. Its acquisition of a 40 percent stake in the Mina West block in September 2023, alongside Shell’s 60 percent ownership, forms a strong partnership with the state-owned Egyptian Natural Gas Holding Company (EGAS). This cooperation supports Egypt’s broader ambitions to expand its energy infrastructure and reinforce its status as a regional energy hub.

Egypt currently holds an estimated 2.2 trillion cubic meters of proven natural gas reserves, ranking sixth in the Arab world. The country has recently intensified efforts to attract foreign investment into its energy sector. In August, Egypt plans to award new gas exploration contracts as part of a major concession bidding round that spans over 26,000 square kilometers across northern and northeastern Egypt and offshore East Mediterranean regions.

This latest round includes 12 onshore and offshore blocks offered by EGAS, as Egypt aims to counter recent declines in domestic gas production. Coupled with renewed export flows from Israel and successful financial moves such as a $1 billion sukuk sale and debt settlements with foreign oil firms, Egypt’s energy sector is showing renewed signs of momentum. The development of Mina West, backed by global players like Shell and Kufpec, marks a significant step in this broader revival strategy.