The Minister of Petroleum and Mineral Resources, Karim Badawi, has outlined a new five-year plan for oil and gas exploration and production during a high-level meeting with leaders and representatives of international oil companies (IOCs) operating in Egypt on December 20.
The plan prioritizes achieving self-sufficiency in crude oil while continuing to boost natural gas output, highlighting the government’s focus on strengthening energy security, according to a statement by the Ministry of Petroleum and Mineral Resources (MoPMR). The strategy also aims to limit Egypt’s import bill by channeling local production surplus to value-added industries and exports.
Badawi noted that strategic cooperation with international partners has played a key role in reversing the decline in Egypt’s natural gas production, with output now gradually increasing to around 4.2 billion cubic feet per day (bcf/d). Furthermore, he attributed this progress to close collaboration, improved operational efficiency, and targeted investment in upstream activities.
The minister also emphasized the importance of expanding value-added industries, including petrochemicals and fertilizers, alongside increasing liquefied natural gas (LNG) exports. These efforts are designed first to meet domestic natural gas demand and then allocate any surplus to economically viable downstream and export activities.
According to Badawi, achieving these objectives will require the introduction of new investment frameworks and incentives, as well as the adoption of advanced drilling and production technologies.
The meeting reviewed the five-year exploration and production targets, as well as measures to enhance the investment climate. It also discussed progress in mitigating natural production decline and technical approaches being implemented in partnership with international operators.
At the end of the meeting, representatives of IOCs expressed appreciation for the MoPMR cooperation, citing its positive impact on the performance of Egypt’s natural gas sector. Moreover, they also praised the government’s focus on flexible and competitive investment models, describing them as essential for attracting new capital, and reaffirmed their commitment to supporting technology-driven programs and deploying modern production technologies in Egypt.
Egypt’s oil and natural gas sector has been undergoing a strategic reset over the past two years to address natural production decline and rising domestic demand, particularly for natural gas.
