Arab Finance: Egypt’s Ministry of Petroleum and Mineral Resources and Halliburton are exploring the wider use of horizontal drilling and hydraulic fracturing technologies to increase oil and gas production and reduce operating costs, as per a statement.
Minister of Petroleum Karim Badawi discussed the plans with a Halliburton delegation headed by Ahmed Helmy, the company’s Regional Manager MENA and Eurasia. The meeting focused on using Halliburton’s technologies and technical applications to raise production rates, improve field economics, and lower production and operating costs.
Badawi said increasing production and maximizing the use of Egypt’s oil and gas resources remain key priorities for the petroleum sector. He called for using modern technology and international expertise to convert opportunities in fields and reservoirs into tangible production gains.
The minister directed Halliburton to prepare technically and economically viable studies covering production opportunities across Egypt. The studies will focus on horizontal drilling and hydraulic fracturing while assessing the applications best suited to the characteristics of each region.
Badawi also called for closer coordination between Halliburton and the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and the South Valley Egyptian Petroleum Holding Company (Ganope). The entities will work to identify priority opportunities and establish clear programs to capitalize on them.
The scope of the initiative should encompass natural gas projects and fields as well as oil operations to maximize available reserves and resources while improving production economics, Badawi noted.
He also emphasized the need to monitor the technical and economic studies regularly and convert their recommendations into executable programs capable of delivering measurable production increases and cost reductions.
Helmy praised the ministry’s recent measures to improve the investment climate, raise production, strengthen partnerships with international oil companies, and address outstanding payments owed to foreign partners.
He said Halliburton has the operational flexibility to deploy its equipment, assets, and expertise across North Africa, supporting an expansion of its Egyptian operations and allowing it to provide technical and technological assistance to exploration and production companies.
Halliburton has begun preparing specialized studies to identify opportunities in unconventional areas and reservoirs, according to Helmy. The work is intended to determine how production can be increased while improving operating economics and reducing costs.
Several of the proposed solutions could be implemented in areas operated by Khalda Petroleum Company in the Western Desert, he added.
Over the coming months, Halliburton plans to conduct a comprehensive technical and economic study across Egypt to identify the most suitable opportunities for horizontal drilling and hydraulic fracturing based on the characteristics and production potential of individual reservoirs.
Moreover, Helmy pointed out that the company’s business model in Egypt extends beyond supplying equipment and technical services to transferring knowledge, expertise, and technology. Halliburton also aims to help improve project economics and deliver sustainable production increases.
Studies conducted by the company have identified potential to increase production and improve operational performance at several petroleum-sector companies and areas, including Khalda Petroleum, General Petroleum Company (GPC), and Badr Petroleum, which is affiliated with the Western Desert Operating Petroleum Company (WEPCO).
Helmy said the technologies could be extended to other companies, adding that Halliburton is prepared to work directly with operators to convert the identified opportunities into implementation programs aimed at raising production, improving efficiency, and reducing costs.
