Egypt launches new Mediterranean gas drilling campaign with Valaris DS-12

Ahram Online , Monday 23 Mar 2026

The drilling vessel Valaris DS-12 has arrived in Egyptian territorial waters, marking the start of a new offshore gas drilling campaign in the Mediterranean, targeting four wells for BP and Arcius Energy, according to a statement by the Ministry of Petroleum and Mineral Resources.

Photo courtesy of Egypt's cabinet

The campaign highlights renewed activity in Egypt’s upstream energy sector and growing investor confidence among major international energy companies, supported by government incentives to boost exploration, development, and production.

The vessel will begin by drilling one production well and one exploratory well for BP, before moving on to drill two additional exploratory wells for Arcius Energy, a joint venture between BP and the UAE’s ADNOC.

The ministry said the programme is part of a broader strategy to expand offshore exploration and accelerate the development of gas resources, aiming to strengthen domestic production and meet rising energy demand.

In coordination with partners, Egypt plans to drill more than 100 exploratory wells in 2026, alongside development drilling in existing fields, to maximize resources and unlock new reserves, the ministry added.

Officials see expanded exploration as crucial for gradually increasing local production and boosting the sector over the next five years, the ministry statement said.

The push comes as Egypt works to restore investor confidence by settling long-standing financial dues to international energy partners.

Petroleum Minister Karim Badawi said the government will settle all remaining arrears, estimated at around $1.3 billion, by the end of June 2026, down from around $6.1 billion in mid-2024.

He added that the ministry has committed to maintaining regular monthly payments alongside clearing legacy debt, after arrears accumulated during economic strains linked to the pandemic and regional tensions slowed investment and output.

Officials say the decline in production has now been contained, with exploration and development activity regaining pace.

The improved payment record has already encouraged major international companies to scale up investments, with Italy’s Eni planning around $8 billion, BP committing about $5 billion, and UAE-based Arcius pledging $2 billion.

Shell has also expanded Mediterranean exploration, while Apache has increased its presence in the Western Desert, with total investments in Egypt surpassing $4 billion.