The 18-month initiative will use advanced drilling technologies to assess previously untapped oil and gas resources in existing fields.
Egypt’s Egyptian General Petroleum Corporation (EGPC) and US oilfield services company Halliburton signed a cooperation agreement on Thursday, November 12, 2026, at the General Petroleum Company’s (GPC) headquarters to conduct technical studies for a proposed programme targeting 50 oil wells over 18 months. Witnessed by Petroleum and Mineral Resources Minister Karim Badawi, the agreement aims to increase Egypt’s domestic oil and gas production through advanced horizontal drilling and multi-stage hydraulic fracturing technologies, targeting resources in existing fields and geological formations previously considered commercially unviable using conventional extraction methods.
The agreement forms part of an initiative launched by the Ministry of Petroleum and Mineral Resources earlier this year to expand the application of advanced and unconventional technologies in exploration and production, particularly in producing areas with untapped hydrocarbon potential.
Badawi said adopting modern technologies was a key element of Egypt’s strategy to increase domestic oil and gas output and maximise the economic value of its petroleum resources.
He welcomed the swift progress from discussions with Halliburton Chairman and CEO Jeff Miller and other company executives during the ADIPEC energy conference in Abu Dhabi earlier this month to the signing of the cooperation agreement.
The minister described the partnership as an important step towards expanding the application of horizontal drilling and hydraulic fracturing across GPC’s operational areas. He also praised the company’s technical workforce and its experience in exploration, drilling and production.
The agreement follows GPC’s recent success in applying hydraulic fracturing to produce natural gas from the low-permeability Abu Rawash F formation at the NES-8 well in Egypt’s Western Desert.
According to the ministry, production from the well approached 3 million cubic feet of gas per day, marking the first application of the technology by GPC to extract gas from the formation, where conventional methods had previously been commercially ineffective.
The result provides a practical example of how advanced extraction techniques can improve recovery from geological formations that have been difficult to develop, although their wider commercial viability will depend on individual reservoir conditions and drilling economics.
Horizontal drilling increases contact with hydrocarbon-bearing rock, while multi-stage hydraulic fracturing creates pathways that improve the flow of oil and gas through low-permeability formations.
The agreement was signed by EGPC Chief Executive Salah Abdel Karim and Halliburton Egypt Country Manager Amr Azzam, with Miller participating via videoconference.
Miller welcomed the agreement, praising the efforts of both companies’ teams in translating earlier discussions into practical cooperation. He reaffirmed Halliburton’s commitment to providing its technical expertise and advanced technologies to support the proposed programme.
The signing ceremony was attended by Petroleum Ministry Undersecretary for Production Ishak Saad and GPC Chairman Mohamed Abdel Meguid. Halliburton representatives included Eastern Hemisphere President Rami Yassin, who participated remotely, Middle East and North Africa Vice President Zaid Khadra, and North Africa Vice President Ahmed Helmy.
The agreement establishes a framework for preparing the proposed drilling programme rather than confirming that drilling has begun. No investment value or production forecast for the 50 wells was announced, and the programme’s eventual contribution to Egypt’s energy supply will depend on the technical studies and subsequent development decisions.
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