Egypt Revives Al-Baraka Oil Field with New Investments from Mediterra Energy

The Egyptian government has restarted drilling operations at the Al-Baraka oil field in Upper Egypt after a four-year pause. The resumption of activities follows new investments from Canada's Mediterra Energy, which arrived to implement a rehabilitation program for production wells.

Karim Badawi, Minister of Petroleum and Mineral Resources, visited the site operated by South Valley Egyptian Petroleum Holding Company (Ganope) to review the restart. The drilling rig and pumping of new investments mark the beginning of workover operations on seven existing wells, drilling two new wells, and technical studies for five additional wells.

The program aims to boost oil production from the mature wells at Al Baraka, which was discovered in 2007 as Upper Egypt's first oil field. The Ministry of Petroleum and Mineral Resources has offered a package of investment incentives, including the R-Factor fiscal mechanism and concession area integration, to improve project economics.

Ganope Chairman Samir Raslan stated that the company is preparing to award six new exploration areas in southern Egypt, including South Baraka, North Baraka, and Kharit, to Mediterra Energy and General Petroleum Company. The planned investments are estimated at $60-70 million and will support exploration in relatively low-cost frontier areas.