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

Petroleum and Mineral Resources Minister Karim Badawi said production reached its lowest point in mid-2025, describing the rebound as proof that the sector has “returned to the right track” and is now in a phase of steady growth supported by reforms, new investment incentives, and renewed international confidence.

In its statement, the ministry called this a turning point, saying crude oil production is expected to stabilize by the final quarter of fiscal year 2024/2025.

Since August, the sector has been in what officials describe as a “gradual ascent,” with new discoveries and wells expected to maintain the upward trend.

The recovery has been supported by stronger finances. In addition to the $3.6 billion in import bill savings, the government has been paying foreign partners regularly to maintain their confidence and keep operations running smoothly.

Settling $1 billion in overdue payments was highlighted as a milestone, with additional payments scheduled to be made before the end of the year.

The ministry emphasized that honouring commitments has been critical in restoring trust with international companies that have long been active in Egypt’s upstream sector.

Policy changes have also been central to the turnaround. The ministry has introduced new investment incentives and updated petroleum agreement models to attract more foreign investors.

Since mid-2025, it has posted 64 new investment opportunities on its global portal, with several new agreements expected soon. Technical data is already being exchanged with companies preparing for fresh exploration work.

International oil companies have welcomed these steps. Apache reported record results in Egypt, boosting gas production from the Western Desert and expanding its investments.

BP increased output from the Raven field and made new discoveries in the Mediterranean, while ENI resumed drilling at Zohr and discovered additional reserves in the Western Desert through Agiba operations.

Shell connected six new wells at West Delta Deep Marine, adding new production. EGA awarded new offshore Mediterranean blocks in the 2024/2025 licensing round to sustain exploration momentum.

The ministry said recent operational measures are already delivering results and preparing the ground for future growth.

Over the past six months, priority wells were identified, new producing wells were connected, and more areas began contributing to supply.

In the last three months, drilling activity accelerated, with new discoveries expected to come online in FY2024/2025. Workovers brought idle wells back into production, and fast-track tie-ins ensured that new wells were quickly connected to the grid.

Looking ahead, the government aims to boost crude oil and condensate output in FY 2024/25, complete four field development projects, carry out 35 operations to improve productivity, upgrade infrastructure, and open three new pipelines to expand capacity.

Longer-term goals include raising crude reserves, improving production efficiency, increasing the number of producing wells, and maximizing recovery of associated gas.

Badawi praised the sector’s workforce for stabilizing production under difficult conditions and said the ministry would continue implementing its strategy to secure energy stability, attract investment, and strengthen Egypt’s role as a regional energy hub.

Prime Minister Mostafa Madbouly announced in August that, after years of decline, gas production is expected to rise from the current 4.1 billion cubic feet per day to 6.6 billion cubic feet per day by 2027, driven by renewed foreign investment and payment of arrears.

He stated that the government has already paid $1 billion to international companies and plans to pay an additional $1.4 billion before the end of the year.

Regarding domestic supply, Salah Abdel Karim, CEO of the Egyptian General Petroleum Corporation (EGPC), stated that total consumption of 83.6 million tons of petroleum products and natural gas was fully met, with domestic production exceeding 60 million tons.

In mid-September, he stressed that refining operations processed about 25.3 million tons of crude to supply various petroleum products and fuels.

Egypt's gas challenges
 

Egypt’s gas sector has faced mounting pressure in recent years, forcing the government to rely on expensive imports to meet rising demand. Declining output from key fields, surging summer electricity use, and disruptions to regional supply routes exposed weaknesses in a sector that had recently achieved self-sufficiency.

The Zohr field, once seen as Egypt’s energy game changer, has struggled with technical problems, including water infiltration, leading to falling output. Other mature fields have also declined, resulting in national production reaching a seven-year low by the end of 2024.

This drop coincided with record electricity demand during heatwaves, when gas generates 80-85 percent of Egypt’s power.

To bridge the gap, the government returned to the global LNG market. In early 2025, it signed $3 billion worth of deals with Shell and TotalEnergies for 60 LNG cargoes.

By mid-2025, more contracts had been signed, bringing the total to 150–160 cargoes through 2026, at a cost exceeding $8 billion.

Recent agreements
 

Israeli company NewMed signed a $35 billion deal to supply Egypt with 130 billion cubic metres (4.59 trillion cubic feet) of gas from the Leviathan reservoir through 2040. The contract, concluded with Blue Ocean Energy (BOE), is the largest in Israel’s history and secures Egypt as a key export market for Israeli gas.

Egypt has also strengthened energy ties with Greece. In October 2024, EGAS and Greece’s Copelouzos Group signed an agreement to trade, transport, and regasify natural gas, channelling Egyptian LNG to Greece and Eastern Europe to diversify supplies for the region.