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JEDDAH: Egypt has signed a new offshore drilling contract with BP and US-based Valaris for five gas wells in the Mediterranean Sea, as it accelerates efforts to boost output and attract foreign investment. 

Petroleum Minister Karim Badawi witnessed the signing of the agreement, which marks the launch of BP’s latest drilling program in Egypt. The project will target five natural gas wells at depths ranging from 300 to 1,500 meters, using the Valaris 12-DS deepwater drilling rig, the ministry said in a statement. 

The initiative aligns with the Ministry of Petroleum and Mineral Resources’ strategy to boost international investment and broaden exploration efforts in the North African nation. It also continues BP’s more than 60-year partnership with Egypt’s petroleum sector as a major partner in oil and gas exploration and production. 

“BP is one of the petroleum sector’s most important strategic partners in natural gas production,” the ministry quoted Badawi as saying. 

He added that recent gas production projects in the Mediterranean have been “pivotal in increasing domestic gas production and securing new resources during peak summer consumption.” 

Badawi said the ministry is fully supporting new projects to accelerate their implementation, with the goal of adding fresh gas output over the coming year, discovering new reservoirs, and strengthening Egypt’s production capacity while reducing import dependence. 

The contract was signed in the presence of Mahmoud Abdel Hamid, CEO of the Egyptian Natural Gas Holding Co., following a memorandum of understanding last month in London between EGAS and BP that the minister had signed. 

Egypt’s oil and gas production has entered a phase of gradual growth since August, following a four-year decline, with natural gas output increasing by more than 200 million cubic feet per day, the ministry said. 

This boost has helped the government reduce the fuel import bill by $3.6 billion and settle $1 billion in arrears owed to international partners. 

“The new drilling program is scheduled to begin in 2026 and covers a mix of appraisal, development, and exploration wells aimed at accelerating the development and production of gas reserves in the region, while leveraging existing onshore and offshore infrastructure in the West Nile Delta area,” the statement added. 

Nader Zaki, BP’s regional president for the Middle East and North Africa, said the signing strengthens the company’s long-standing partnership with Egypt and is a strategic step to develop more gas resources in the Nile Delta and bring them online quickly to meet local demand. 

RIYADH: ��������’s non-oil sector is expected to contribute up to 3.5 percent annually to the Kingdom’s gross domestic product growth between 2025 and 2028, according to an expert from S&P Global. 

In an interview with Asharq Al-Awsat, Hina Shoeb, head of analytics, cross practice ratings at S&P Global ��������, said that this growing contribution will be supported by both government and private investments in sectors such as real estate, tourism, and infrastructure. 

This comes as ��������’s real GDP grew 3.9 percent in the second quarter, driven by strong non-oil activity that extended its growth streak to 18 consecutive quarters.

Non-oil sectors rose 4.6 percent year on year in April–June, highlighting the Kingdom’s rapid economic diversification. 

She added that the growth of the non-oil sector aligns with the continued economic momentum in the country, resulting from Vision 2030 reforms, which aim to enhance economic diversification and reduce dependence on oil revenues. 

“Non-oil sectors have become a major driver of economic activity in the Kingdom, supported by housing programs, mortgage financing, and the expansion of mega-projects,” Shoeb told Asharq. 

The S&P official added that the economy in the Kingdom is moving toward a sustainable transformation driven by long-term investment spending. 

In August, the International Monetary Fund highlighted the resilience of the Saudi economy, stating that the Kingdom will see GDP growth of 3.6 percent in 2025, accelerating to 3.9 percent in 2026. 

Earlier this month, S&P Global noted that ��������’s Vision 2030 program is transforming the country’s economic landscape by creating substantial growth opportunities in the corporate sector and spurring project financing in infrastructure. 

The report added that non-oil activity is expected to contribute approximately 57 percent of GDP in 2025, with this share rising when oil prices decline and falling when they increase. 

In May, ��������’s General Authority for Statistics reported that GDP grew 2.7 percent year on year in the first quarter, driven by strong non-oil activity. 

Commenting on these figures at that time, Minister of Economy and Planning Faisal Alibrahim, who chairs GASTAT’s board, said the contribution of non-oil activities reached 53.2 percent of the Kingdom’s economic output — up 5.7 percent from previous estimates. 

He added that ��������’s economic outlook remains positive, supported by structural reforms and high-quality, state-led projects across multiple sectors.