The target forms part of the petroleum sector’s five-year plan to raise domestic production, expand exploration, reduce reliance on imported petroleum products and gas, and increase exports of higher-value refined products, Badawi said at a meeting to review the sector’s performance and future targets, Minister of Petroleum and Mineral Resources Karim Badawi said in a statement on Tuesday.
The meeting was attended by senior ministry officials and the heads and executives of the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and South Valley Egyptian Petroleum Holding Company.
Badawi said incentives and reforms implemented over the past two years, particularly regular payments of outstanding dues to investment partners, improved investment terms and petroleum agreements, and the launch of new investment opportunities, have strengthened investor confidence and encouraged international companies to increase investments and accelerate exploration, drilling and production programmes.
These measures are directly contributing to higher domestic production, better utilisation of Egypt’s oil and gas resources and lower dependence on imports, thereby reducing the country’s import bill, he added.
Faster exploration, higher production
Badawi said accelerating exploration and production and maximising domestic output remain key priorities, adding that recent positive results increase the prospects of further discoveries and production additions.
The sector is seeking to tap promising areas across Egypt, including the Denise gas discovery, which he described as an important indicator of the potential of the country’s exploration areas.
He also highlighted frontier areas, particularly the West Mediterranean, which holds significant potential and is being targeted through intensified exploration activity and efforts to attract additional investment.
EGPC presented plans to expand exploration activities over the next five years, supported by improvements in the investment climate and the regular payment of partners' dues.
The plans include new contractual models aimed at shortening the time needed to drill wells and accelerating exploration programmes and their results, in addition to increasing exploration and production activities by around 20 percent this year.
Badawi stressed the need to continue improving operations and investment efficiency to maximise the chances of new discoveries and additions to reserves and production needed to meet domestic demand.
Refinery utilization tops 80%
In the refining sector, Badawi said increased crude supplies to refineries, alongside efficiency and upgrading projects, had raised refinery utilisation rates to more than 80 percent in 2026.
Higher utilisation has boosted domestic production of petroleum products, reduced the dollar-denominated import bill and lowered diesel imports, while supporting higher exports of specialised, higher-value petroleum products, he said.
The meeting also reviewed plans to reduce petroleum-product imports by increasing domestic production, improving refinery efficiency, implementing new projects and maximising available production capacity.
The ministry also reviewed the West Desert's Western Desert's Malheya gas processing plant, which is scheduled to begin operations next month with production capacity of up to 100 million cubic feet of natural gas per day. The project is expected to support domestic production and reduce the need for imported gas.
EGAS, South Valley expand exploration
EGAS presented its five-year exploration and production plans, which target adding new natural gas reserves to strengthen Egypt’s reserve base, increase output and meet domestic market needs.
The company also reviewed global performance assessment indicators, including the Upstream Risk Reward Index, which ranked Egypt fourth among Arab countries and 13th globally, reflecting an improvement in the competitiveness and investment appeal of the Egyptian petroleum sector.
South Valley Egyptian Petroleum Holding Company presented plans to expand exploration and production, including integrating the Baraka development areas, studying new exploration blocks and conducting seismic surveys in the southern Western Desert.
The company’s production has reached its highest level on record, while it is targeting investments of around $250 million over the next five years to increase output and maximise exploration potential in its areas of operation.
The meeting also reviewed digital initiatives aimed at improving resource and asset management.
EGPC is developing an electronic portal to allow companies across the petroleum sector to access surplus equipment and unused project supplies, supporting greater integration and more efficient use of assets and resources.
A digital platform for environmental performance indicators is also being developed to enable regular monitoring of companies’ environmental performance, improve compliance with environmental standards and raise operational efficiency.
Badawi called for the five-year targets to be translated into clear implementation programmes and measurable performance indicators, while continuing to remove obstacles to investment and accelerate exploration, drilling and production.
He said raising domestic production, maximising value added, reducing the import bill and improving the efficiency of sector resources will remain key pillars of Egypt’s petroleum strategy, supporting domestic market needs and the wider economy.
The US–Israel war on Iran has moved from a geopolitical shock into a direct economic and energy test for Egypt, hitting the country through disrupted gas supplies, higher oil and LNG prices, capital flight, pressure on the pound, and a sharp drop in Suez Canal revenues.
The conflict exposed a structural gap in Egypt’s gas balance of roughly 2 billion cubic feet per day when Israeli supplies were interrupted, pushing the government to rely more heavily on spot LNG and diversified contracts with partners in Qatar, the US, and Cyprus.
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