Shaping Egypt’s Energy Landscape

At the recent Bilateral Chamber’s Annual Board of Advisors Dinner in Abu Dhabi, we had the pleasure of discussing Egypt’s energy future with H.E. Eng. Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, and Mr. Clay Neff President of Chevron International Exploration and Production.

The discussion underscored the importance of collaboration and strategic partnerships in achieving shared energy goals between the Egyptian government and the private sector. In Minister Badawi’s view, Egypt is not just managing challenges — the country is seizing opportunities to develop a more diversified and sustainable energy mix. Mr. Neff highlighted how the leadership of President El-Sisi and the Egyptian government has played a key role in creating a stable, secure regulatory environment that encouraged Chevron’s expansion. The reforms implemented gave Chevron the confidence to invest across upstream, midstream, and downstream segments, cementing Chevron’s role in Egypt’s growing energy landscape.

Egypt’s Vision for a Sustainable and Diversified Energy Mix

Minister Badawi emphasized Egypt’s strong commitment to an energy mix that balances renewable energy with traditional sources including oil and natural gas. The country has set ambitious targets, including a goal to achieve 20% renewable electricity by 2030. This transition is critical for the environment and for securing Egypt’s energy future. Natural gas, especially from the Eastern Mediterranean, is central to this strategy, and it will continue to fuel the country’s economy while allowing Egypt to meet its emissions reduction targets.

The conversation also touched on Egypt’s significant natural gas reserves and the country’s shift toward utilizing natural gas for power generation. Egypt is emerging as a regional energy hub for LNG exports. While natural gas remains a critical part of the current energy mix, the Egyptian government is also focused on balancing its use with renewable energy expansion. The broader goal, as Minister Badawi stated, is to diversify the energy mix and reduce carbon emissions in line with international climate goals. Minister Badawi stressed the urgency of accelerating energy efficiency efforts while also investing in renewables, hydrogen, carbon capture, and geothermal energy. While these technologies will take time to mature, the Egyptian government is determined to pursue them with a focus on economic viability and scalability, ensuring that Egypt remains on track towards achieving its long-term energy and climate goals.

The Critical Role of Strategic Partnerships in Shaping Egypt’s Energy Future

One of the key themes Minister Badawi emphasized is the critical role of partnerships in shaping the future of energy. He noted a need for resiliency and building strategic partnerships, reaffirming Egypt’s commitment to creating an environment that supports sustainable investment. In his closing remarks, Minister Badawi emphasized, "the success of our partners is our success—our team is here to support them, as their success directly contributes to the success of Egypt."

Chevron’s Commitment to Egypt

These sentiments align with Chevron’s commitment to Egypt, as conveyed by Mr. Neff. Chevron has long viewed Egypt as a critical partner in shaping the future of energy in the region and beyond. Initially starting in the downstream sector since 1937, Chevron expanded into upstream operations in 2020. This decision, made during the COVID-19 pandemic, underscored Egypt’s stability and commitment to long-term energy development.

Expanding Exploration in the Eastern Mediterranean

Mr. Neff emphasized that Chevron’s partnership with Egypt is rooted in long-term collaboration, with Chevron remaining committed to supporting the growth of Egypt's energy sector through exploration programs in the Mediterranean. Chevron commenced drilling of an exploration well at Khendjer in North el Dabaa Block 4 in early November 2024.

Mr. Neff noted that Chevron has a large and important position in the Eastern Mediterranean, a region which is very much a priority for the company. Chevron’s partnership with Egypt aligns with Chevron’s goal to support the country in becoming a regional energy hub. Mr. Neff reaffirmed Chevron’s commitment to supporting Egypt’s Vision 2030 energy strategy.

Strategic Importance of the Eastern Mediterranean Region

Mr. Neff also spoke about Chevron’s ambitions to grow production in the Eastern Mediterranean over the next decade, through expansion projects in the region. This expansion supports Egypt’s drive for greater energy security. As Mr. Neff put it, this growth isn’t just about expanding Chevron’s footprint but ensuring Egypt and the region have the resources and infrastructure to meet future energy demand.

Additionally, Chevron plans to continue constructive dialogue with Cypriot authorities and other stakeholders to explore further energy opportunities in the Eastern Mediterranean, a region of strategic importance.

Collaboration for Sustainable Energy Future

As the global energy landscape becomes more complex, Mr. Neff stressed that collaboration is essential. Chevron views global energy challenges as opportunities for innovation and deeper partnerships.

Mr. Neff outlined Chevron’s aim to lower the carbon intensity of operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies.

Balanced Energy Mix for Sustainability

Mr. Neff acknowledged that the world’s energy needs are vast and diverse, requiring a mix of oil, gas, LNG, hydrogen, nuclear and other sources to meet them. Chevron is committed to being part of the solution, wherever and however energy is needed. In Egypt, this means collaborating with the government and stakeholders to create an energy mix that balances sustainability, security, and growth.

At the Bilateral Chamber of Commerce, we are proud to support Egypt on its sustainable development journey. As part of this commitment, we are actively engaged with EGYPES 2025 in partnership with dmg events. Contact us to learn more about opportunities to join the conversation.

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