As Egypt navigates the complexities of the global energy landscape, enhancing its oil and gas production has emerged as a pivotal strategy for ensuring energy security and driving economic growth. The Egyptian government has been implementing various initiatives and incentives to boost production, from both conventional and unconventional resources, and attract upstream investments.
Positive Momentum in the Petroleum Sector
Egypt has been keen to boost its oil and natural gas production to meet energy demands. While highlighting the major achievements of the petroleum and mineral resources sectors over the last six months (July–December 2024), Minister of Petroleum and Mineral Resources Karim Badawi has recently revealed that Production rates have increased to 1.4 million barrels of oil equivalent per day (mmboe/d) following the drilling of 105 new wells, including 95 oil wells and 10 natural gas wells. This daily output includes 63,700 barrels of oil and condensates, as well as 271 million cubic feet (mcf) of natural gas.
This comes as several companies have recently surpassed their production targets. Notably, Borg El-Arab Petroleum Company (BORAPETCO) exceeded production plans in key areas, achieving 113% of targets in Borg El-Arab fields, 103% in Abu Sennan fields, and 100% in West Wadi El Natrun. This strong performance led to BORAPETCO producing 1.2 million barrels of oil equivalent (boe) during the first quarter of the fiscal year 2024/25. Furthermore, the Suez Oil Company (SUCO) has demonstrated significant progress at the Ras Badran field, increasing production by 3,800 boe/d to reach 7,500 boe/d, surpassing the initial production plan of 3,100 boe/d within the first three months of operations.
At the same time, Egypt has been reported to have several recent discoveries. The most recently announced discovery is the announcement made by ExxonMobil Egypt (Upstream) Limited, in January 2025, stating that the company encountered gas bearing reservoirs after completing the drilling of the Nefertari 1 well in the North Marakia Block with the Valaris DS-9 drillship. In this regard, the Ministry of Petroleum and Mineral Resources (MoPMR) commented that results after well logging showed the presence of two main gas-bearing layers in the Cretaceous formation, and initial estimates of the gas volume are being calculated. This discovery will open the door of hope for the western Mediterranean region and encourage companies to work there, the MoPMR anticipated.
Factors Leading to Production Growth
Several factors have contributed to the increase in oil and gas production in Egypt, particularly over the past months. This comes as Egypt’s government has implemented several initiatives and incentives aimed at boosting oil and gas production while attracting upstream investments, over the past year. The Minister of Petroleum and Mineral Resources, Karim Badawi, has been at the forefront of these efforts, announcing a comprehensive strategy designed to enhance production capabilities and encourage foreign investment in the sector.
One significant initiative includes the introduction of new incentives that focus on increasing production levels beyond current rates. These incentives are structured to promote exploratory and developmental drilling activities, thereby enhancing production operations; furthermore, they include new mechanisms that are associated with achieving an increase in production beyond the current rates, as well as an increase in exploratory, developmental drilling activities and production operations. Moreover, the MoPMR has outlined an ambitious plan that includes drilling 110 new exploratory wells with a total investment of $1.2 billion during the fiscal year (FY) 2024/25. Additionally, by 2030, Egypt will have invested $7.2 billion to drill 586 exploratory gas and oil wells, as mentioned by Badawi in July 2024 during his statement before a parliamentary committee.
Meanwhile, the MoPMR announced in August 2024 that the Egyptian Natural Gas Holding Company (EGAS) was initiating a new international bid round for 2024. This round focused on the exploration and extraction of natural gas and crude oil across 12 blocks located in the Mediterranean and Nile Delta regions. This bid round is part of the Ministry’s strategy to attract new investments to Egypt, aiming to capitalize on promising opportunities in gas and oil exploration, particularly in the Mediterranean Sea, recognized for its significant natural gas potential.
As for the resources, Egypt is not only producing from conventional resources, but it is also paying great attention to developing unconventional resources and boosting brownfields efficiency to increase production. This comes as maintaining and increasing production rates in obsolete fields improves economic performance and reduces the import bill.
In this regard, the General Petroleum Company (GPC) announced, in December 2024, that it has succeeded in increasing its production from the Eocene reservoir, which is known to be an unconventional reservoir, by using the acid activation technique.
The recent surge in Egypt’s oil and gas production, driven by increased drilling activity, successful companies’ performance, and significant new discoveries, signifies a positive trajectory for the country’s energy sector. These developments are not only bolstering energy security but also attracting substantial foreign investment. With a focus on both conventional and unconventional resources, coupled with strategic government initiatives and a commitment to innovation, Egypt is well-positioned to further enhance its energy production capabilities and solidify its role as a key player in the regional and global energy landscape.
