By: AGBI

Adnoc Drilling plans to expand its role in Egypt by finalising partnerships with state-backed oil companies, as Cairo seeks foreign investment to boost domestic oil and gas production.

The Adnoc subsidiary intends to partner with the Egyptian General Petroleum Corporation (EGPC) and its subsidiaries, the UAE state-run Wam reported.

The plan was discussed in Cairo by Adnoc Drilling CEO Abdullah Al Messabi and Egypt’s petroleum minister, Karim Badawi.

Al Messabi pointed to strong collaboration with Egyptian Drilling Company, which drills oil and gas wells in Egypt and abroad.

Badawi said increased drilling is a key pillar of the oil ministry’s five-year plan to boost domestic crude oil and natural gas production.

In July, Badawi and Adnoc CEO Sultan Al Jaber met in Abu Dhabi to discuss plans to increase UAE investment in Cairo’s energy sector.

Arcius Energy, a joint venture between Adnoc unit XRG and UK energy company BP, is working on plans to develop the Harmattan gas field project and start drilling at the Atoll West exploratory well in the Mediterranean basin.

Last month, Egypt cleared all its outstanding dues to global oil and gas companies, which is likely to attract more investment into the sector.

Adnoc said in May it would award AED200 billion ($55 billion) in contracts over the next two years to support its upstream and downstream expansion.

Shares in Adnoc Drilling, listed on the Abu Dhabi Securities Exchange since October 2021, closed 0.2 percent higher at AED6.16 on Friday. The stock is up more than 15 percent so far this year.

XRG, Adnoc’s international investment arm, owns 78.50 percent of Adnoc Drilling.