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Apache Corporation plans to invest next year $1.4 billion in Egypt’s energy industry, where the U.S. firm is one of the biggest investors and the largest oil producer in the North African country.
The investment plans were unveiled during a meeting on Sunday of Egyptian Prime Minister Mostafa Madbouly with Apache chief executive John Christmann, the government of Egypt said in a statement carried by local and Arab media.
Egypt expressed hopes that Apache would expand its oil and gas exploration activities and investments in the country despite the global economic slowdown.
Apache, for its part, committed to deepening its partnership with Egypt and discussed raising its oil production in the country, the cabinet said.
Thanks to upgrades, Apache has recently managed to increase its oil production by 10% to more than 150,000 barrels per day (bpd), Christmann told Egyptian officials, according to the statement from the government.
Apache has operated in Egypt for more than 27 years and says it is one of the largest American investors and the largest oil producer in the country. Apache’s primary interests are in the Western Desert with high-impact exploration targets in both new and legacy acreage.
As of the end of 2022, the company held 5.3 million gross acres in six separate concessions. Some 68% of the company’s gross acreage in Egypt is undeveloped, providing considerable exploration and development opportunities for the future, Apache says. The operations in Egypt, including a one-third non-controlling interest, contributed 37% of 2022 production and 21% of year-end estimated proved reserves.
The meeting between Apache and the top Egyptian officials this weekend was not the first such discussion of the U.S. company’s plans this year.
In May this year, Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, met with Christmann and Apache’s VP & Country Manager David Chi to review the activities and discuss plans for research, exploration, and production of oil and gas in its concession areas in the Western Desert.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com